Lending regulation
Equal Credit Opportunity Act (ECOA)
Federal law prohibiting discrimination in any aspect of a credit transaction
It protects against discrimination on race, color, religion, national origin, sex, marital status, age, and because an applicant receives public assistance income. It also entitles a declined applicant to a statement of the reasons.
How the exam asks about it
Credit history, income and length of employment are legitimate underwriting factors and are the distractors in these items — evaluating them is what a lender is supposed to do.
Related terms
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