Under the Equal Credit Opportunity Act (ECOA), lenders are prohibited from discriminating against credit applicants based on which of the following?
Correct Answer
B) Race, color, national origin, sex, marital status, age, or receipt of public assistance
The Equal Credit Opportunity Act (ECOA) prohibits lenders from discriminating against credit applicants on the basis of race, color, national origin, sex, marital status, age (provided the applicant is of legal age), receipt of public assistance income, or the good-faith exercise of rights under the Consumer Credit Protection Act. Note that 'religion' is a protected class under the Fair Housing Act, not ECOA.
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Related Topics & Key Terms
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Related Concepts
A conventional loan is a mortgage that is not insured or guaranteed by a government agency such as the FHA, VA, or USDA. It is originated and funded by private lenders and may be conforming or non-conforming.
The debt-to-income ratio (DTI) compares a borrower's monthly debt obligations to their gross monthly income. It is used by lenders to determine how much mortgage a borrower can afford.
In the context of foreclosure, a deed transfers ownership of the foreclosed property to the new owner, typically the buyer at a foreclosure sale.
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