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. 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.