What law is violated if a mortgage lender discriminates against a loan applicant on the basis of marital status? (2024)

What law is violated if a mortgage lender discriminates against a loan applicant on the basis of marital status?

The Equal Credit Opportunity Act [ECOA] , 15 U.S.C.

What if a mortgage lender discriminates against a loan applicant?

If you believe you have experienced mortgage lending discrimination, you can file a complaint with HUD.

What is the lending discrimination Act?

Lending Discrimination Statutes and Regulations

The Equal Credit Opportunity Act (ECOA) prohibits discrimination in any aspect of a credit transaction. It applies to any extension of credit, including extensions of credit to small businesses, corporations, partnerships, and trusts.

What two acts prohibit discrimination against loan applicants?

The Fair Housing Act (FHA) and the Equal Credit Opportunity Act (ECOA) protect consumers by prohibiting unfair and discriminatory practices.

Which of the following laws protects against discrimination in lending?

The federal fair lending laws—the Equal Credit Opportunity Act and the Fair Housing Act—prohibit discrimination in credit transactions, including transactions related to residential real estate.

What are the 3 types of lending discrimination?

What is an example of a fair lending violation?

For example, if a lender refuses to make a mortgage loan because of your race or ethnicity, or if a lender charges excessive fees to refinance your current mortgage loan based on your race or ethnicity, the lender is in violation of the federal Fair Housing Act.

What are the types of discrimination in mortgage lending?

What federal law protects consumers from unfair discrimination in credit?

The Equal Credit Opportunity Act makes it illegal for a creditor to discriminate in any aspect of credit transaction based on certain characteristics.

What does the ECOA prohibit a lender from discriminating based on?

The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age (provided the applicant has the capacity to enter into a binding contract); because all or part of the applicant's income derives ...

What act makes it unlawful for a lender to discriminate against an applicant on a prohibited basis regarding any aspect of a credit transaction?

ECOA makes it “unlawful for any creditor to discriminate against any applicant, with respect to any aspect of a credit transaction,” on several enumerated bases, including “on the basis of . . . sex . . . ” Likewise, Regulation B prohibits a creditor from discriminating against an applicant on a prohibited basis ( ...

What are the 4 federal laws regulating discrimination?

Title VII, the ADEA, GINA, and the EPA also cover the federal government. In addition, the federal government is covered by Sections 501 and 505 of the Rehabilitation Act of 1973, as amended, which incorporate the requirements of the ADA.

What is the Federal Consumer Credit Protection Act?

THE ACT, WHICH SAFEGUARDS CONSUMERS BY REQUIRING FULL DISCLOSURE OF THE TERMS AND CONDITIONS OF FINANCE CHARGES IN CREDIT TRANSACTIONS OR IN OFFERS TO EXTEND CREDIT, IS PRESENTED AS AMENDED THROUGH MARCH 1976.

What is Regulation B in mortgage?

Regulation B requires that banks provide a copy of the appraisal report used in connection with an application for credit to be secured by a lien on a dwelling. A bank may provide the copy either routinely (whether or not credit is granted or the application is withdrawn) or upon an applicant's written request.

What are the three major fair lending regulations?

What are the two primary fair lending laws?

The federal fair lending laws — the Equal Credit Opportunity Act and the Fair Housing Act — prohibit discrimination in credit transactions, including transactions related to residential real estate.

What is disparate impact discrimination in lending?

Disparate impact is a particularly insidious form of discrimination, where a neutrally enforced policy that a lender uses for all customers may be subtly geared towards negatively impacting a protected class of people.

What is overt evidence of discrimination?

Overt Evidence of Discrimination occurs when a creditor openly discriminates on a prohibited basis or makes statements indicating a discriminatory preference.

What is evidence of disparate impact?

By its nature, “disparate impact” evidence involves showing a disparity. Plaintiff must show that the extent of harm the policy or practice causes minorities and non-minorities is different.

What are the consequences of violating fair lending requirements?

First, a person alleging injury may sue the creditor in a federal district court. Second, the federal agency with jurisdiction may take action against the creditor. Third, the Justice Department may pursue a civil action against a suspected violator.

What are the abuses of lending?

This is also called “predatory lending.” Abusive lending may entail misleading or false advertising of loan products and lenders failing to ensure that borrowers can afford loans through, for instance, proper credit assessment. This is also referred to as “reckless lending.”

What describes any lending practice that requires unfair?

Predatory lending refers to any unfair practice that benefits the lender and makes it difficult for a borrower to repay debt. The signs of a predatory loan include language like 'guaranteed' approval, an inflated interest rate and hidden fees and tacked-on financial products you didn't ask for.

How do I report mortgage discrimination?

If you believe a lender has discriminated against you for any reason, you can submit a complaint with the CFPB online or by calling (855) 411-CFPB (2372). You'll need the dates, amounts, and other details about your complaint before submitting.

What is proxy discrimination?

Proxy discrimination occurs when a facially neutral trait is used as a stand-in for a prohibited trait.

What is a red flag for an Equal Credit Opportunity Act violation?

ECOA violations. 1. The lender changes its story after meeting a client face-to-face after telephone conversation approval. 2. There is any indication that the loan is denied based on personal status.