Fair Housing

Which federal act prohibits discrimination in mortgage lending based on race, color, religion, sex, national origin, disability, or familial status?

ACommunity Reinvestment Act

BEqual Credit Opportunity Act

CFair Housing Act✓ Correct

DHome Mortgage Disclosure Act

Explanation

The Fair Housing Act (Title VIII of the Civil Rights Act of 1968) prohibits discrimination in residential mortgage lending (and all aspects of real estate transactions) based on race, color, religion, sex, national origin, disability, and familial status. ECOA adds additional credit-specific protections.

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.