Finance
The Equal Credit Opportunity Act (ECOA) prohibits lenders from discriminating based on:
ACredit score and employment history
BRace, color, religion, national origin, sex, marital status, age, or receipt of public assistance✓ Correct
CProperty location and appraisal value
DLoan amount requested
Explanation
ECOA prohibits credit discrimination based on race, color, religion, national origin, sex, marital status, age (provided the applicant is old enough to contract), and receipt of public assistance income. Lenders must evaluate creditworthiness based on financial qualifications.
People Also Study
Related Pennsylvania Questions
- Which federal law prohibits discrimination in residential mortgage lending based on race, color, religion, national origin, sex, disability, or familial status?Fair Housing
- Which federal act prohibits discrimination in mortgage lending based on race, color, religion, sex, national origin, disability, or familial status?Fair Housing
- The Equal Credit Opportunity Act (ECOA) prohibits lenders from discriminating against borrowers based on:Fair Housing
- National origin discrimination under the Fair Housing Act protects persons from discrimination based on:Fair Housing
- Which type of mortgage allows the interest rate to remain fixed for an initial period, then adjusts annually based on a market index?Finance
- The Truth in Lending Act (TILA) requires lenders to disclose the:Finance
- RESPA (Real Estate Settlement Procedures Act) requires that a Loan Estimate be provided to the borrower within how many business days of the loan application?Finance
- A home equity line of credit (HELOC) is a:Finance
Key Terms to Know
Appraisal
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
Pre-ApprovalA lender's conditional commitment to loan a specific amount to a borrower, based on verified income, credit, and assets.
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.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Study This Topic
Practice More Pennsylvania Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Pennsylvania Quiz →