Finance
What is the 'Equal Credit Opportunity Act' (ECOA) and how does it protect Hawaii loan applicants?
AA. A law requiring equal mortgage rates for all borrowers regardless of credit risk
BB. A federal law prohibiting discrimination in credit decisions based on race, color, religion, national origin, sex, marital status, age, or receipt of public assistance; applies to all credit transactions✓ Correct
CC. A law ensuring all Hawaii residents have access to credit from government lenders
DD. A state law requiring Hawaii banks to match the lowest rates offered to any borrower
Explanation
ECOA (Regulation B) prohibits discrimination in any aspect of a credit transaction based on protected characteristics. In Hawaii, this means lenders cannot deny mortgages, charge different rates, or impose different terms based on race, national origin, sex, marital status, or age. Lenders must provide adverse action notices when declining credit, and applicants may request the specific reasons for denial.
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