Loan Auditors

One of the most misunderstood aspects of real estate law is ECOA - Equal Credit Opportunity Act.

A lender is in violation of ECOA if any of the following is true:

• A loan was refused on the basis of race, color, religion, national origin, sex, marital status, or age
• A loan was refused because a part of the applicant’s income was derived from public assistance
• A loan was refused due to an applicant exercising a right in good faith under the Consumer Credit Protection Act

Of course, you have to understand that just because a loan was refused it doesn’t mean there is discrimination. If an applicant can’t pay for a loan then he or she will likely not win an ECOA case.

But, in certain situations, it’s OK for a creditor to inquire about marital status or age. Simply asking for this information does not constitute discrimination. But there has to be a real reason for asking. If you think that you may have been discriminated against, you can ask your loan auditor for a document review. The details will be in writing.