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Fair Lending

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Fair Lending Laws

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Impact of Fair Lending

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Special Purpose Credit Programs

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The federal fair lending laws – the Equal Credit Opportunity Act and the Fair Housing Act – prohibit discrimination in credit transactions, including transactions related to residential real estate.

Fair Lending Statutes and Implementing Regulations

The Equal Credit Opportunity Act (ECOA), External Link PDF which is implemented by the Board's Regulation B (12 CFR 202), prohibits discrimination in any aspect of a credit transaction. It applies to any extension of credit, including residential real estate lending and extensions of credit to small businesses, corporations, partnerships, and trusts.

The ECOA prohibits discrimination based on:

The Fair Housing Act (FHAct), External Link PDF which is implemented by HUD regulations (24 CFR 100), prohibits discrimination in all aspects of residential real estate-related transactions, including but not limited to:

The FHAct prohibits discrimination based on:

Because both the FHAct and the ECOA apply to mortgage lending, lenders may not discriminate in mortgage lending on the basis of any of the prohibited factors listed previously. In addition, with respect to residential real estate-related lending, under both laws, a lender may not, on the basis of a prohibited factor,

A lender may not express, orally or in writing, a preference that is based on a prohibited factor or indicate that it will treat applicants differently on the basis of a prohibited factor. Moreover, a lender may not discriminate on a prohibited basis because of the characteristics of

Finally, the FHAct requires lenders to make reasonable accommodations for a person with disabilities when such accommodations are necessary to afford the person an equal opportunity to apply for credit.

Please visit the Federal Financial Institutions Examination Council (FFIEC) website for the Interagency Fair Lending Examination Procedures. External Link PDF