A 70-year-old applicant applies for a 30-year mortgage. The lender is concerned about the applicant's age relative to the loan term. Under ECOA, the lender may:
Correct Answer
C) Consider age only in relation to other pertinent creditworthiness factors
Under ECOA and Regulation B, age may only be considered as it relates to pertinent elements of creditworthiness. A lender cannot automatically deny credit or impose different terms based solely on age, but may consider age in relation to factors like income stability or the meaningful life of collateral.
Why This Is the Correct Answer
Under ECOA and Regulation B, age may only be considered as it relates to pertinent elements of creditworthiness. A lender cannot automatically deny credit or impose different terms based solely on age, but may consider age in relation to factors like income stability or the meaningful life of collateral.
More Federal Laws Questions
A mortgage broker's website states 'Qualified borrowers can get loans with down payments as low as 3%.' Which statement about TILA advertising requirements is correct?
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For a closed-end mortgage loan, when must the creditor provide the Closing Disclosure to the borrower?
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