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.
What is classified as a fair lending law?
What is fair lending? Fair lending prohibits lenders from considering your race, color, national origin, religion, sex, familial status, or disability when applying for residential mortgage loans. Fair lending guarantees the same lending opportunities to everyone. Is there a law that protects my fair lending rights?
What are the two types of lending?
Types of loans
- Secured loans.
- Unsecured loans.
Is HMDA a fair lending law?
The Fair Lending Program prohibits lenders from using discriminatory practices. The Fair Housing Act prohibits discrimiation against people who are looking to rent, purchase or finance a home.
Which 3 regulations statutes support fair lending practices?
The courts have recognized three methods of proof of lending discrimination under the ECOA and the FHAct: Overt evidence of disparate treatment; • Comparative evidence of disparate treatment; and • Evidence of disparate impact.
What are the three main types of lending?
The three main types of lenders are mortgage brokers (sometimes called “mortgage bankers”), direct lenders (typically banks and credit unions), and secondary market lenders (which include Fannie Mae and Freddie Mac).
What is lending and types of lending?
Types of Lending. Lending can be broadly broken down into two categories: personal (or “consumer”) lending and business lending. Some types of loans are available in both personal and business lending, though they are handled differently.