What is a fair lending complaint?
Individuals who believe that they have been the victims of any unfair credit transaction involving residential property may file a complaint with the Department of Housing and Urban Development [HUD] or one of the federal regulatory agencies listed below. …
What is an example of discrimination in lending?
Examples of Lending Discrimination
Providing a different customer service experience to mortgage applicants depending on their race, color, religion, sex, familial status, national origin or disability. Refusing to consider a mortgage applicant’s disability-related income, such as SSI or SSDI.
What are the two main acts associated with fair lending?
Two different federal laws deal with discrimination in lending: the Fair Housing Act (FHAct) and the Equal Credit Opportunity Act (ECOA). These fair lending laws prohibit lenders from discriminating in credit transactions on the basis of race, color, national origin, religion, sex, and other specified grounds.
What is an example of lending?
Lending can be broadly broken down into two categories: personal (or “consumer”) lending and business lending. … For example, an individual can get a personal credit card to buy groceries and other basics, and a business can get a business credit card to buy equipment and other business expenses.
What are the 3 main fair lending regulations?
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 does fair lending mean?
Fair lending prohibits lenders from considering your race, color, national origin, religion, sex, familial status, or disability when applying for residential mortgage loans.
What are three types of lending discrimination?
There are three types of lending discrimination: overt, disparate treatment and disparate impact.
What is prohibited basis in fair lending?
The definition of prohibited basis varies based on the specific regulation, but the possible prohibited bases are: race or color, religion, national origin, gender or sex, marital status, age, receipt of income from public assistance, exercise of rights under the CCPA, handicap, or familial status.
How do I report a lender discrimination?
If you believe a lender has discriminated against you for any reason, you can submit a complaint with the CFPB online or by calling (855) 411-CFPB (2372).
What are the violations of fair lending?
Violations of the anti-discrimination law include the following:
- Refusal to sell, rent, or lease rooms, apartments, condos or houses to protected individuals.
- Refusal to negotiate for the sale, rental, or lease of housing.
What are consequences of violating fair lending requirements?
Civil penalties of up to $10,000 for each initial violation and up to $25,000 and $50,000 for successive violations within specific time frames.