A federal law prohibiting discrimination in housing transactions, including mortgage lending, based on race, color, religion, national origin, sex, disability, or familial status.
Full Definition
The Fair Housing Act of 1968 (amended in 1988) prohibits discrimination in the sale, rental, and financing of housing based on seven protected classes: race, color, religion, national origin, sex, disability, and familial status. In mortgage lending, violations can include redlining (refusing to lend in certain neighborhoods), steering (directing borrowers toward less favorable products based on protected characteristics), discriminatory appraisals, and applying different terms or conditions based on protected status. Equal Credit Opportunity Act (ECOA) extends some protections to mortgage lending specifically. Lenders must advertise with the Equal Housing Lender logo and ensure their lending criteria are based solely on creditworthiness.
Related Terms
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