How mortgage laws protect you against discrimination
The USA mortgage industry runs as per the laws set up by the Government. These mortgage laws may differ from one state to another. However, mortgage basics are similar throughout United States of America. Each state has its own mortgage laws that protect consumers against discrimination. Go through this article to know about 2 such laws.
- Equal Credit Opportunity Laws
As per ECOA (Equal Credit Opportunity Act), the lenders cannot discriminate borrowers on the basis of color, race, religion, sex, national origin, age, marital status and whether or not a borrower gets public assistance. While this information may be included in your application for a credit card, loan, free credit report or other credit-based service, it can’t be used against you. Therefore, the lenders cannot reject your application on the basis of these factors.
- Fair Housing Act
The provisions of Fair Housing Act or FHA prohibit discrimination in property related transactions on the basis of sex, religion, race, national origin, color, family status, etc. The provisions are same regardless of whether a property is purchased or rented.
If you suspect discrimination, then you can check with the state Attorney General’s office to find out whether or not your lender has violated state mortgage laws. You can also sue the lender in the federal district court. If the court finds out that the lender is guilty, then you can recover the actual damages caused to you and get back the amount that you have spent on lawyer and court fees, as well.
Alan Haft is an investment advisor representative with an insurance license, author of three books including the national bestseller, You Can Never Be Too Rich and makes frequent appearances in national print, television and radio media such as The Wall Street Journal, Money Magazine, CNBC, BusinessWeek and many others. The amounts represented in this article should all be considered hypothetical and for example only.