What are some of the prohibited factors covered under ECOA FHAct?

Asked by: Dr. Kolby Zieme  |  Last update: November 14, 2025
Score: 4.1/5 (9 votes)

  • race or color.
  • national origin.
  • religion.
  • sex.
  • marital status.
  • age.*
  • applicant's receipt of income from a public assistance program.
  • applicant's exercise, in good faith, of any right under the Consumer Credit Protection Act.

What are the prohibited factors under ECOA?

This Act (Title VII of the Consumer Credit Protection Act) prohibits discrimination on the basis of race, color, religion, national origin, sex, marital status, age, receipt of public assistance, or good faith exercise of any rights under the Consumer Credit Protection Act.

What are the prohibited bases included in FHA and ECOA?

prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age, because an applicant receives income from a public assistance program, or because an applicant has in good faith exercised any right under the Consumer Credit Protection ...

What factors are considered prohibited factors in fair lending legislation?

Fair lending prohibits lenders from considering your race, color, national origin, religion, sex, familial status, or disability when applying for residential mortgage loans. Fair lending guarantees the same lending opportunities to everyone.

What questions are prohibited by ECOA?

We recommend that you avoid asking applicants about personal characteristics that are protected by law, such as race, color, religion, sex, national origin or age.

What Is the Equal Credit Opportunity Act (ECOA)? Purpose

22 related questions found

Which of the following is not a prohibited basis factor under ECOA?

An example that is NOT a prohibited basis for the Equal Credit Opportunity Act is annual income and military status. The Equal Credit Opportunity Act prohibits discrimination in credit transactions on the basis of race and skin color, national origin, sex, age, marital status, religion, and other protected attributes.

What is an example of an ECOA violation?

Imposing unfair terms or conditions on a loan (such as lower loan amount or higher interest rates) based on personal characteristics protected under the ECOA. Asking detailed personal information regarding marital status, such as whether you are widowed or divorced.

Which of the following is prohibited under the concept of fair lending?

The Fair Housing Act makes it illegal to discriminate against someone because of race, color, religion, sex (including gender, gender identity, sexual orientation, and sexual harassment), familial status, national origin or disability at any stage of the mortgage process, including: Approvals and denials.

What are 4 factors a lending institution might use when determining your eligibility?

What Factors Do Mortgage Lenders Consider?
  • Your Credit History.
  • Your Income and Savings.
  • Your Debt-to-Income Ratio.
  • Your Down Payment.
  • Your Loan Type.

What is the ECOA in real estate?

The ECOA protects lenders from discrimination on the basis of race, gender, religion, national origin, marital status and any other factor unrelated to the loan itself. Lenders are only allowed to consider factors that will affect a borrower's ability to repay the loan.

Which activities are prohibited under ECOA quizlet?

ECOA prohibits discrimination by lenders in any part of a credit transaction on the basis of: race, color, religion, national origin, sex, marital status, age (has to be 18), the receipt of income from a public assistance program, or having exercised any rights under Consumer Credit Protection Act.

What is the ECOA and FHA Act?

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

What does the Federal Fair Housing Act not cover?

The FHA generally isn't applicable when a building has two to four units, and the owner lives in one of them. Single-family homes rented without a broker. The FHA doesn't apply when a single-family house is sold or rented without a broker, so long as the owner doesn't own more than three houses.

What is prohibited in both ECOA and Fair Housing Act?

Under the ECOA, it is unlawful for a lender to discriminate on a prohibited basis in any aspect of a credit transaction, and under both the ECOA and the FHAct, it is unlawful for a lender to discriminate on a prohibited basis in a residential real-estate-related transaction.

What are the prohibited factors for discrimination?

Under the laws enforced by EEOC, it is illegal to discriminate against someone (applicant or employee) because of that person's race, color, religion, sex (including gender identity, sexual orientation, and pregnancy), national origin, age (40 or older), disability or genetic information.

What is a prohibited basis?

(z) Prohibited basis means race, color, religion, national origin, sex, marital status, or age (provided that the applicant has the capacity to enter into a binding contract); the fact that all or part of the applicant's income derives from any public assistance program; or the fact that the applicant has in good faith ...

What are the four 4 main factors that need to be considered when making the financing assessment?

Here is what lenders look at when it comes to each of these factors so you can understand how they make their decisions.
  • Capacity. Capacity refers to the borrower's ability to pay back a loan. ...
  • Capital. ...
  • Collateral. ...
  • Character. ...
  • The Other “C” of Credit.

What are 3 factors that can affect the terms of a loan for a borrower?

The percentage of the interest rate depends on many factors:
  • The amount borrowed.
  • The lender.
  • The type of loan.
  • The borrower's credit.
  • Any collateral that is put down for the loan.

What are the five factors that help determine whether or not someone gets a loan and what interest rate they would pay?

The five Cs of credit are important because lenders use these factors to determine whether to approve you for a financial product. Lenders also use these five Cs—character, capacity, capital, collateral, and conditions—to set your loan rates and loan terms.

Which of the following is considered a prohibited basis in both the ECOA and the Fair Housing Act?

Redlining may violate both the FHAct and the ECOA.

Which are prohibited bases under the federal fair lending laws?

The FHA prohibits discrimination in home mortgage loans, home improvement loans, and other home credit transactions because of race, color, religion, sex, national origin, familial status, or disability.

Which of the following is prohibited under fair use?

Answer & Explanation. D. Making a single copy of a chart prohibits fair use.

What is ECOA prohibited list?

This Act (Title VII of the Consumer Credit Protection Act) prohibits discrimination on the basis of race, color, religion, national origin, sex, marital status, age, receipt of public assistance, or good faith exercise of any rights under the Consumer Credit Protection Act.

Which activities are prohibited under ECOA?

  • Discriminatory Credit Practices Defined. ECOA prohibits discrimination in any aspect of a credit transaction. ...
  • Applicant Marital Status. ...
  • Applicant Age. ...
  • Income Consideration. ...
  • Redlining. ...
  • Indirect Lending.

What is an example violation of Fair credit Billing Act?

Common examples of billing errors include unauthorized charges, charges for goods and services you didn't accept (or weren't delivered as agreed) and missing payments or other credits, like returns. You can also ask for a written explanation or proof of purchases.