Fair Lending Comparison Chart

  

 Fair Lending

Requirements (using the strictest   rules of all regulations involved)

Equal Credit Opportunity Act            (ECOA)

Fair Housing Act

   (FHA)

UDAAP

 

 

Title VI of the Civil Rights

 Act of 1968

Prohibited Basis

Prohibited Basis

Prohibited Basis

Prohibited Basis

Prohibited Basis

Race

Race

Race

Race

Race

Color

Color

Color

Color

Color

Religion

Religion

Religion

Religion

Religion

National Origin

National Origin

National Origin

National origin

National Origin

Sex

Sex

Sex

Sex

Sex

Marital Status

Marital Status

 

Age (provided the applicant has the capacity to contract)

Age (provided the applicant has the capacity to contract)

 

The applicant’s receipt of income derived from any public   assistance program

The applicant’s receipt of income derived from any public   assistance program

 

The applicant’s exercise, in good faith, of any right under the   Consumer Credit Protection Act. or any state law upon which an exemption has been granted   by the Board

The applicant’s exercise, in good faith, of any right under the   Consumer Credit Protection Act. or any state law upon which an exemption has been granted   by the Board

“Familial status” means one or more individuals (who   have not attained the age of 18 years) being domiciled with–(1) a parent or   another person having legal custody of such individual or individuals; or (2)   the designee of such parent or other person having such custody, with the   written permission of such parent or other person.

The protections afforded against discrimination on the basis of   familial status shall apply to any person who is pregnant or is in the   process of securing legal custody of any individual who has not attained the   age of 18 years.

Familial status  (defined   as children under the age of 18 living with a parent or legal custodian,   pregnant women, and people securing custody of children under 18)

Handicap means (1) a physical or mental impairment which   substantially limits one or more of such person’s major life activities,

(2) a record of having such an impairment, or

(3) being regarded as having such an impairment, but such term   does not include current, illegal use of or addiction to a controlled   substance (as defined in section 102 of the Controlled Substances Act (21   U.S.C. 802)).

Handicap means, with respect to a person (defined as having a   physical or mental impairment which substantially limits one or

more of such person’s major life activities; a

record of having such an impairment; or being regarded as having   such an impairment, but such term does not include current, illegal use of or   addition to a controlled substance (as defined in section 102 of the   Controlled Substances Act (21 U.S.C. 802)).

Under ECOA, it is unlawful for a lender to discriminate on a   prohibited basis in any aspect of a credit transaction.

Under ECOA, it   is unlawful for a lender to discriminate on a prohibited basis in any   aspect of a credit transaction.  The FHA prohibits discrimination in all   aspects of “residential real-estate related transactions”,   including, but not limited to: Prohibits the discrimination in the sale, rental, lease or negotiation   for property  on any prohibited basis

it applies to all types of credit including: business and   consumer credit, credit card and open-ended accounts.

Unlike the FHA,   ECOA is not limited to residential real-estate related transactions as   it applies to all types of credit including: business and consumer credit,   credit card and open-ended accounts. a)  Making loans to buy, build, repair or   improve a dwelling.b) Purchasing   real estate loans.c) Selling,   brokering, or appraising residential real estate.

d) Selling or   renting a dwelling.

Fair Lending is of primary relevance to the daily operations of   most financial institutions.  Applies   to all persons who, in the ordinary course of business, regularly participate   in the decision regarding whether or not to extend credit or the amount to be   extended, including   setting the terms of the credit

ECOA applies to   all persons who, in the ordinary course of business, regularly participate in   the decision regarding whether or not to extend credit or the amount to be   extended, including   setting the terms of the credit With regard to   prohibited practices, FHA section 805, which applies to the financing,   selling, brokering, and appraising of housing, and FHA section 804, which   addresses sales, rentals, and related activities, are of primary relevance to   the daily operations of most financial institutions.  

Unlawful discrimination also occurs if an applicant is denied   because of prohibited considerations concerning the applicant’s business   associates or persons who will be somehow related to the extension of credit.   Example:  The race of persons residing   in the neighborhood where the collateral is located.

Unlawful   discrimination also occurs if an applicant is denied because of prohibited   considerations concerning the applicant’s business associates or persons who   will be somehow related to the extension of credit. Example:  The race of persons residing in the   neighborhood where the collateral is located. Section 805   makes it unlawful for a financial institution to discriminate against any   person in making available, or in setting the terms and conditions of, a   residential real estate-related transaction because of a prohibited basis.  

Discouragement. A creditor shall not make any oral or written   statement, in advertising or otherwise, to applicants or prospective   applicants that would discourage on a prohibited basis a reasonable person   from making or pursuing an application.

 

Discouragement.A creditor   shall not make any oral or written statement, in advertising or otherwise, to   applicants or prospective applicants that would discourage on a prohibited   basis a reasonable person from making or pursuing an application. An   Abusive Act or practice is one   that:  1) Materially interferes with the ability of a consumer to understand a   term or condition of a consumer financial product or service; or2) Takes unreasonable advantage of

a. A lack of   understanding on the part of the consumer of the material risks, costs, or   conditions of the product or service;

b.  The inability of the consumer to protect the   interests of the consumer in selecting or using a consumer financial product   or service; or

c. The reasonable   reliance by the consumer on a covered person to act in the interests of the   consumer.

 

An Abusive Act or practice is one that:

1) Materially   interferes with the ability of a consumer to understand a term or condition   of a consumer financial product or service; or

2) Takes unreasonable advantage of

a. A lack of understanding on the part of the consumer of the material   risks, costs, or conditions of the product or service;

b.  The inability of the consumer   to protect the interests of the consumer in selecting or using a consumer   financial product or service; or

c. The reasonable reliance by the   consumer on a covered person to act in the interests of the consumer.

Section 805 defines   “residential real estate-related transaction to mean: (1) the making or   purchasing of loans or providing other financial assistance (a) for   purchasing, constructing, improving, repairing, or maintaining a dwelling, or   (b) secured by residential real estate, and (2) any selling, brokering, or   appraising of residential real property.  
Required to   have clearly written, nondiscriminatory loan underwriting standards available   to the public upon request, at each of its offices.  These standards “must” be   reviewed annually by the association to ensure equal opportunity in lending FHA 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 a loan.