Under ECOA, discrimination is prohibited on all of the following EXCEPT which?

Unlock all questions

This demo includes only 20 questions. Upgrade to access hundreds of questions, flashcards, exam simulations, and disable ads.

Full question bankExam simulationsFlashcards
From $24.99Unlock all

Prepare for the Mckissock 8-hour National Valuation Bias and Fair Housing Laws and Regulations Test. Study with flashcards and multiple choice questions with detailed explanations. Ensure your success on exam day!

Multiple Choice

Under ECOA, discrimination is prohibited on all of the following EXCEPT which?

Explanation:
Under ECOA, lenders may not discriminate in credit decisions based on protected characteristics. Those protected bases include race, color, religion, national origin, sex, marital status, and age, and the act also shields income that derives from public assistance or the applicant’s source of income. However, income level itself isn’t listed as a protected basis under ECOA. So while race, sex, and marital status are illegal grounds for discrimination in credit, making those firmly prohibited, discrimination solely on how much income a borrower earns isn’t forbidden by ECOA. That’s why income level is the exception.

Under ECOA, lenders may not discriminate in credit decisions based on protected characteristics. Those protected bases include race, color, religion, national origin, sex, marital status, and age, and the act also shields income that derives from public assistance or the applicant’s source of income. However, income level itself isn’t listed as a protected basis under ECOA. So while race, sex, and marital status are illegal grounds for discrimination in credit, making those firmly prohibited, discrimination solely on how much income a borrower earns isn’t forbidden by ECOA. That’s why income level is the exception.

More Multiple Choice Questions
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy