Fair HousingIntermediateCalifornia Exam

Which of the following practices related to home loans is prohibited under the Equal Credit Opportunity Act (ECOA)?

ARequiring income documentation from loan applicants, as defined under the Fair Employment and Housing Act
BCharging different interest rates based on credit score, consistent with federal Fair Housing Act protections
CDenying credit based on the applicant's race, color, religion, national origin, sex, marital status, or ageCorrect
DRequiring a minimum down payment for conventional loans, per standard fair housing compliance practice

Why Denying credit based on the applicant's race, color, religion, national origin, sex, marital status, or age Is Correct

Answer C: Denying credit based on the applicant's race, color, religion, national origin, sex, marital status, or age

The Equal Credit Opportunity Act (ECOA) prohibits creditors from discriminating against credit applicants based on race, color, religion, national origin, sex, marital status, age, or receipt of public assistance. It applies to all aspects of credit transactions.

Exam Tip: Fair Housing

Fair Housing questions test both federal (Fair Housing Act of 1968) and state-level protected classes. The federal protected classes are race, color, religion, national origin, sex, familial status, and disability. Many states add additional protections.

Key Fair Housing Terms in This Question

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