Fair HousingIntermediateNorth Carolina Exam

Which federal law specifically prohibits discrimination in credit transactions (including mortgages) based on race, color, religion, national origin, sex, marital status, age, or receipt of public assistance?

AFair Housing Act

BEqual Credit Opportunity Act (ECOA)Correct

CCommunity Reinvestment Act

DHome Mortgage Disclosure Act, in general

Why Equal Credit Opportunity Act (ECOA) Is Correct

Answer B: Equal Credit Opportunity Act (ECOA)

The Equal Credit Opportunity Act (ECOA) specifically prohibits discrimination in credit transactions based on race, color, religion, national origin, sex, marital status, age, or receipt of public assistance income.

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.

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.

Discount Points

Prepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.