Fair Housing

Which federal law prohibits discriminatory lending practices (redlining) in mortgage lending, and what are lenders required to do under it?

ARESPA—lenders must provide good faith estimates
BThe Equal Credit Opportunity Act (ECOA)—lenders cannot discriminate in credit decisions based on protected characteristics
CHMDA—lenders must collect and report data on mortgage applications by race, income, and census tract
DBoth B and C correctly identify anti-discrimination laws with complementary requirements✓ Correct

Explanation

Both the Equal Credit Opportunity Act (ECOA) and the Home Mortgage Disclosure Act (HMDA) address discriminatory lending. ECOA prohibits discrimination in credit decisions based on race, religion, national origin, sex, marital status, age, or receipt of public assistance.

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