Fair lending protection
Federal law protects every home buyer
looking for a mortgage loan against discrimination on the basis of
race, color, national origin, religion, sex, marital status, age,
receipt of public assistance funds, familial status (having children
under the age of 18), handicap, or exercising your rights under other
consumer credit protection laws. Lenders may not take any of these
factors into account in their dealings with you.
For instance, lenders may not discourage
you because of your race or national origin from applying
for a mortgage loan. Whatever your color, they must offer you
the same credit terms as other applicants with similar loan requests.
They may not treat your application differently because of your sex
or marital status or familial status. In short, they are barred from
taking into account any of the factors listed here in their dealings
with applicants or with potential applicants. They should:
Willingly give you an application and other information you need on
how to apply for a loan
Willingly
discuss with you the various mortgage loans they offer and give you
an idea whether you can qualify for them
Diligently
act to make a decision--without undue delay--once you provide all
the information asked for (including, for example, written evidence
of how much you make or how much you have in savings), and once they
receive other paperwork required for processing the application (such
as a property appraisal)
Not
be influenced by the racial or ethnic composition of the neighborhood
where the home you want to buy is located.
If you apply for a mortgage and are
turned down, remember that not all institutions have the same lending
standards. Shop around for another lender (Allie Mae can help
if needed). But if the way you were treated suggests the possibility
of unlawful discrimination, you might talk to:
Private fair housing groups
Often these groups can walk you through
the mortgage process. They can also help you understand whether your
experience suggests that the lender is discriminating unlawfully,
and can help you decide whether to file a complaint.
Human rights agencies
These are government agencies set up
by a city, county, or state government to deal with discrimination.
Attorneys
They can advise you whether the treatment
you received gives you legal grounds for bringing a lawsuit against
the lender. They can tell you about monetary damages and other types
of relief available to individuals who can prove that illegal discrimination
occurred.
Federal or state enforcement agencies
They can check the activities of mortgage
lenders to make sure they complied with the laws against lending discrimination.
When you write, include your name and address; name and address of
the lending institution you are complaining about; address of the
house involved; and a short description and the date of the alleged
violation.
Federal
There are laws against discrimination
in home financing. The Fair Housing Act prohibits discrimination in
housing sales or loans on the basis of race, religion, color, national
origin, sex, familial status (having children under the age of 18),
or handicap.
The Equal Credit Opportunity Act prohibits
discrimination in any aspect of a credit transaction on the basis
of race, religion, age, color, national origin, receipt of public
assistance funds, sex, marital status, or the exercise of any right
under the Consumer Credit Protection Act.
Allie Mae
As always, Allie Mae is here to help.
Feel free to contact us for advice. You
may also find your questions already answered in our FAQ
or forum.
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