ECOA prohibits discrimination based on:
Correct Answer
B) Race, color, national origin, sex, marital status, or age
ECOA (Equal Credit Opportunity Act) prohibits lending discrimination based on race, color, national origin, sex, marital status, age, and receipt of public assistance income. Note that religion is NOT an ECOA protected class — religion is protected under the Fair Housing Act. Credit score, debt-to-income ratio, and employment length are legitimate financial underwriting factors and are not protected classes under ECOA.
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Related Topics & Key Terms
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Related Concepts
Foreclosure is the legal process by which a lender takes possession of a property when a borrower fails to make mortgage payments. It allows the lender to sell the property to recover the outstanding debt.
The loan-to-value ratio (LTV) is the percentage of a property's appraised value or purchase price (whichever is lower) that is being financed through a mortgage. LTV = Loan Amount / Property Value.
A comparison of the major mortgage loan types—conventional, FHA, VA, and USDA—covering their eligibility requirements, down payment amounts, mortgage insurance rules, and best use cases.
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