DISCRIMINATION IN LENDING

 

The Law also prohibits discrimination in connection with lending, including real estate lending. It is unlawful to discriminate in connection with lending on the basis of the same characteristics* that are protected in connection with the sale or rental of housing.

*Age can be considered in determining the creditworthiness of an applicant when age has a demonstrable and statistically sound relationship to determining creditworthiness

 

The Law prohibits the following in connection with an application for a loan for the purchase, acquisition, construction, rehabilitation, or repair or maintenance of a home:

 

Discriminating in granting, withholding, extending, renewing, or setting the terms, rates, or conditions of the loan.

Example: A lender charges higher interest rates to African-Americans.

 

Using an application for a loan or making any record on an inquiry about an applicant that expresses any limitation, specification, discrimination.

Example: A credit application asks about the applicant’s medical history.

 

Asking an applicant about her capacity to have children or about the use or advocacy of any form of birth control or family planning.

Example: A loan officer asks a couple applying for a loan whether they plan to have children.

Refusing to consider sources of an applicant’s income or discounting an applicant’s income because of a protected characteristic, including childbearing potential.

Example: When considering the loan application of a married couple, a creditor refuses to consider the income of the wife because she is of childbearing age.

In connection with considering an applicant’s credit worthiness, considering statistics or assumptions relating to a protected characteristic, including the likelihood of bearing children.

Example: A creditor refuses to lend in predominantly minority neighborhoods.