Fair HousingIntermediateDelaware Exam

What is the 'Equal Credit Opportunity Act' (ECOA) and how does it relate to Delaware real estate?

AA Delaware state law requiring equal mortgage rates for all residents

BA federal law prohibiting discrimination in credit decisions based on race, color, religion, national origin, sex, marital status, age, or receipt of public assistanceCorrect

CA law requiring identical credit limits be extended to all borrowers regardless of their individual income level, which is broadly consistent with standard practice statewide

DA law requiring lenders to offer the same interest rate to all borrowers

Why A federal law prohibiting discrimination in credit decisions based on race, color, religion, national origin, sex, marital status, age, or receipt of public assistance Is Correct

Answer B: A federal law prohibiting discrimination in credit decisions based on race, color, religion, national origin, sex, marital status, age, or receipt of public assistance

ECOA (Regulation B) prohibits discrimination in credit transactions based on protected class characteristics. For Delaware real estate: lenders cannot deny or offer worse terms based on race, color, religion, national origin, sex, marital status, age, or receipt of public assistance.

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

Fair Housing Act

Federal law prohibiting discrimination in the sale, rental, or financing of housing based on race, color, national origin, religion, sex, disability, and familial status.

People Also Study

Key Terms to Know

Fair Housing Act

Federal law prohibiting discrimination in the sale, rental, or financing of housing based on race, color, national origin, religion, sex, disability, and familial status.

Steering

An illegal practice where a real estate agent directs buyers toward or away from certain neighborhoods based on the buyer's race, religion, national origin, or other protected characteristics.

Redlining

An illegal practice where lenders or insurers deny services or charge higher rates in certain neighborhoods based on the racial or ethnic composition of those areas.

Adjustable-Rate Mortgage (ARM)

A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.