Question: Can you tell me what fair lending laws govern the activities of financial institutions with respect to equal access to credit?
Answer: The Equal Credit Opportunity Act and the Fair Housing Act govern lending activities with respect to equal access to credit. These laws were enacted for the purpose of preventing discrimination in credit transactions, including residential real estate transactions.
Question: Can you tell me the differences between the two laws?
Answer: The Equal Credit Opportunity Act prohibits discrimination in any aspect of a credit transaction based on race or color, religion, national origin, and sex, marital status, age, the applicant’s receipt of public assistance, or because the consumer exercised his or her rights under the Consumer Credit Protection Act. The Fair Housing Act prohibits discrimination in any aspect of a residential real estate-related transaction based on race or color, religion, national origin, and sex, familial status, or handicap.