mortgage loan

Word of the Day: Home Equity Line of Credit

mortgage loan

THE CONSUMER’S RIGHT TO FAIR LENDING: Sample Statutes

The Fair Housing Act and the Equal Credit Opportunity are just two of the statutes that protect debtors and borrowers. The former is the law that prohibits discrimination in the sale of houses or issuance of loans based on the race, religion, color, national origin, gender, familial status or being handicapped. The latter, on the other hand, bars discrimination in any aspect of credit transactions or in the exercise of any right stipulated by the Consumer Credit Protection Act.

mortgage loan

THE CONSUMER’S RIGHT TO FAIR LENDING

There is a sufficient number of statutes – both federal and state – that ensure that every home buyer is protected when looking for mortgage loans. These laws are against those pertaining to mortgage loans on the basis of race, national origin, religion, gender, marital status, age, receipt of public assistance funds, familial status, handicapped, and so on. Under US laws, the lenders and credit institutions are prohibited from taking any of the abovementioned factors into account in dealing with debtors and borrowers.

mortgage loan

THE CONSUMER’S RIGHT TO FAIR LENDING: EXAMPLES

To illustrate a case of right to fair lending, creditors must not in any way discourage their clients of race from availing mortgage loans. The same credit terms should be offered as other applicants with similar loan requirements. Also, treating an application differently on account of sex or marital status is prohibited on the same grounds as above. Creditors and lending institutions must accommodate anyone equally. Getting turned down for failure of meeting the credit lending institution’s standard is all right, but it is not if such standards are based on discrimination.

mortgage loan

THE CONSUMER’S RIGHT TO FAIR LENDING: Concerned Organizations

If you encounter problems in your mortgage loans or credit transactions on the basis of discrimination, there are several organizations, both private and public, that can help you. Private fair housing groups, for instance, can extend assistance throughout your mortgage process. These groups are useful in understanding whether there is an unlawful discrimination committed in your mortgage loan. Human rights agencies as well as federal and state agencies are available also to help you especially in the area of enforcing statutes with regards to discrimination.

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