What are the three types of fair lending discrimination?

Asked by: Prof. Dillan Raynor Jr.  |  Last update: July 25, 2025
Score: 4.5/5 (68 votes)

The courts have recognized three methods of proof of lending discrimination under the ECOA and the FHAct: Overt evidence of disparate treatment; • Comparative evidence of disparate treatment; and • Evidence of disparate impact.

What are the 3 main fair lending regulations?

What are the Main Fair Lending Laws & Regulations?
  • Fair Housing Act. There was an old woman who lived in a shoe. ...
  • Equal Credit Opportunities Act. ...
  • Home Mortgage Disclosure Act.

What are the three main types of discrimination in real estate?

Sex (including gender identity and sexual orientation) Familial Status. Disability.

What are the three types of discrimination law?

Disability, mental and physical. Sex, gender (including pregnancy, childbirth, breastfeeding or related medical conditions)

What are examples of fair lending violations?

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.

Fair Lending Risk - Disparate Impact

32 related questions found

What are the three basic types of lending discrimination?

Types of Lending Discrimination

The courts have recognized three methods of proof of lending discrimination under the ECOA and the FHAct: Overt evidence of disparate treatment; • Comparative evidence of disparate treatment; and • Evidence of disparate impact.

What is an example of a violation of the Truth in Lending Act?

Some examples of violations are the improper disclosure of the amount financed, finance charge, payment schedule, total of payments, annual percentage rate, and security interest disclosures.

What are three 3 examples of discrimination?

Here are some examples of what may constitute discrimination.
  • A restaurant does not admit a guest because the person has cerebral palsy.
  • An employee has lower pay than a colleague of the opposite sex with the same or equivalent work.
  • A manager makes unwelcome sexual advances.

What are the three main forms of discrimination?

6.1 Direct, indirect, subtle and adverse effect discrimination.

What are 3 direct discrimination examples?

For example, you might have experienced direct discrimination if:
  • you're black and you were punished for making a mistake at work when a white person wasn't.
  • a landlord refuses to rent you a property when they found out you're gay.
  • you're over 60 and you were given worse service than a younger person was.

What is an example of disparate treatment in fair lending?

Redlining is one of the most infamous and duplicitous forms of disparate treatment in lending, with biased lenders denying mortgages to qualified candidates simply based on their race or location.

What are the three elements of discrimination?

What Are the Three Basic Elements of Discrimination in Employment...
  • Element 1: A Decision Was Not Made on an Individual's Merit. ...
  • Element 2: Harassment in the Workplace. ...
  • Element 3: Retaliation. ...
  • Tips for Employers to Create a Culture of Respect and Anti-Discrimination.

What is discouraging in fair lending?

Discouraged from applying for credit. Encouraged or told to apply for a type of loan that has less favorable terms (for example, a higher interest rate) Hearing the lender making negative comments about race, national origin, age, sex (including sexual orientation or gender identity), or other protected statuses.

What are the 3 C's of lending?

Students classify those characteristics based on the three C's of credit (capacity, character, and collateral), assess the riskiness of lending to that individual based on these characteristics, and then decide whether or not to approve or deny the loan request.

What are the three laws created to stop lending discrimination?

Today, three federal laws offer protection against such discrimination: The Fair Housing Act (FHA)1. The Equal Credit Opportunity Act (ECOA)2. The Community Reinvestment Act (CRA)3.

What are the 3 P's of lending?

These three pillars are the keys to effective credit analysis and can also be referred to as the 3 P's: Policies, Process and People. Policies (or procedures) refer to the overall strategy or framework that guides specific actions. Loan policies provide the framework for an institution's lending activities.

What are the types of discrimination?

It is against the law to discriminate against anyone because of:
  • age.
  • gender reassignment.
  • being married or in a civil partnership.
  • being pregnant or on maternity leave.
  • disability.
  • race including colour, nationality, ethnic or national origin.
  • religion or belief.
  • sex.

What are the three degrees of discrimination?

First-degree is when a seller charges all buyers the highest price and allows for reductions. Second-degree is when a seller changes price depending on the quantity purchased. Third-degree is when a seller charges different prices for different consumer groups based on a specific attribute.

What is the third form of discriminate?

The third-person singular simple present indicative form of discriminate is discriminates. The present participle of discriminate is discriminating. The past participle of discriminate is discriminated.

What is it called when your manager treats you unfairly?

Discrimination at work

Discrimination happens when an employer treats an employee or job applicant unfairly because of their race, color, religion, sex, national origin, age (40 or older), disability, or genetic information. EEOC laws do not cover all employers. Coverage is often based on the number of employees.

What is an example of fair discrimination in the workplace?

An inherent requirement of a job depends on the nature of the job and required qualifications. If such requirements can be shown, discrimination will be fair, for example a person with extremely poor eyesight cannot be employed as an airline pilot.

What are three actions that may be described as discrimination?

dismiss an employee because of their features or attributes. don't hire someone because of their features or attributes. treat a person differently to others because of their features or attributes. offer an employee worse terms than other employees because of their features or attributes.

What are the 6 things they must disclose under the truth in the lending Act?

Lenders have to provide borrowers a Truth in Lending disclosure statement. It has handy information like the loan amount, the annual percentage rate (APR), finance charges, late fees, prepayment penalties, payment schedule and the total amount you'll pay.

What is something the Truth in Lending Act doesn't cover?

Ì Service charges and fees. What Is Not Covered Under TILA? THE TILA DOES NOT COVER: Ì Student loans Ì Loans over $25,000 made for purposes other than housing Ì Business loans (The TILA only protects consumer loans and credit.) Summary.

What is the amount of the civil penalty for violating the Truth in Lending Act?

50501. (a) Any person who violates a provision of this division, or any rule or order under this division, shall be liable for a civil penalty not to exceed two thousand five hundred dollars ($2,500) for each violation.