FAIR HOUSING ACT, EQUAL CREDIT OPPORTUNITY ACT, AND PREDATORY LENDING

DISCRIMINATION

The Fair Housing Act prohibits discrimination in residential real estate–related transactions based on  race or color, national  origin, religion, sex, familial status, and/or disability. For more information, visit hud.gov/fairhousing.  

To file a complaint online, click here or file via phone by dialing either 1-800-669-9777 or 1-800-877-8339.

The Equal Credit Opportunity Act prohibits discrimination in credit transactions based on  race or color, national origin, religion,  sex, marital status, age*, applicant’s receipt of income from a public assistance program, applicant’s exercise, in good faith, of any right under the Consumer Credit Protection Act. For more information, visit consumerfinance.gov.  

To file a complaint online, click here or call toll free (855) 411-2372.

*Age is a prohibited factor provided the applicant has the capacity to enter a contract.

PREDATORY LENDING

Fair lending laws also contain provisions to address predatory lending practices. Some examples follow:

• Collateral or equity “stripping”: The practice of making loans that rely on the liquidation value of the borrower’s home or other collateral rather than the borrower’s ability to repay.
• Inadequate disclosure: The practice of failing to fully disclose or explain the true costs and risks of loan transactions.
• Risky loan terms and structures: The practice of making loans with terms or structures that make it more difficult or impossible for borrowers to reduce their indebtedness.
• Padding or packing: The practice of charging customers unearned, concealed, or unwarranted fees.
• Flipping: The practice of encouraging customers to frequently refinance mortgage loans solely for the purpose of earning loan-related fees.
• Single-premium credit insurance: The requirement to obtain life, disability, or unemployment insurance for which the consumer does not receive a net tangible financial benefit.