Description

Fair Lending & Equal Housing Opportunity Poster

Help communicate fair lending and equal housing principles with the Fair Lending & Equal Housing Opportunity Poster. This 11 x 17-inch poster provides a highly visible reminder that applicants and borrowers are protected from unlawful discrimination in mortgage lending and other covered credit transactions.

Federal fair lending laws prohibit discrimination in important aspects of housing-related lending and credit. Financial institutions, mortgage lenders, brokers, and other organizations involved in lending should maintain policies and procedures designed to provide applicants and borrowers with fair and consistent treatment.

What Is Fair Lending?

Fair lending refers to providing consumers with equal access to credit and mortgage lending opportunities without unlawful discrimination.

Federal fair lending protections are primarily established through laws including the Equal Credit Opportunity Act (ECOA) and the Fair Housing Act.

What Is the Equal Credit Opportunity Act?

The Equal Credit Opportunity Act (ECOA) is a federal law that prohibits creditors from discriminating against applicants in credit transactions based on protected characteristics.

ECOA is implemented through Regulation B, 12 CFR Part 1002, which applies to many types of consumer and business credit transactions.

What Characteristics Are Protected Under ECOA?

Under the Equal Credit Opportunity Act, a creditor generally may not discriminate against an applicant in a credit transaction on the basis of:

Race
Color
Religion
National origin
Sex
Marital status
Age, provided the applicant has the capacity to contract
Receipt of income from a public assistance program
Good-faith exercise of rights under the Consumer Credit Protection Act

What Is the Fair Housing Act?

The Fair Housing Act is a federal civil rights law that prohibits discrimination in housing-related activities, including certain residential real estate lending and mortgage transactions.

The Fair Housing Act applies to discrimination involving the sale, rental, and financing of dwellings and other housing-related activities.

What Characteristics Are Protected Under the Fair Housing Act?

The Fair Housing Act prohibits housing discrimination because of:

Race
Color
Religion
Sex
National origin
Familial status
Disability

What Types of Mortgage Lending Discrimination Are Prohibited?

Federal fair lending laws can prohibit discriminatory treatment at multiple stages of the lending process.

Depending on the circumstances, unlawful discrimination can involve:

Refusing to make a mortgage loan
Refusing to provide information about available loans
Applying different lending standards to similarly situated applicants because of a protected characteristic
Providing different loan terms or conditions
Charging different interest rates, points, fees, or other costs because of a protected characteristic
Discriminating in property appraisal practices
Discriminating in loan servicing
Discriminating in refinancing or home improvement lending
Steering applicants toward less favorable loan products because of a protected characteristic

What Types of Loans Are Covered by Fair Lending Laws?

Federal fair lending protections can apply to a wide range of credit transactions. Depending on the law involved, covered transactions may include:

Home purchase mortgages
Mortgage refinancing
Home equity loans and lines of credit
Home improvement loans
Consumer credit
Business credit
Other transactions involving an extension of credit

The Fair Housing Act specifically addresses certain loans involving residential real estate and dwellings, while ECOA applies more broadly to credit transactions.

Fair Lending During the Mortgage Application Process

Fair lending protections apply throughout the credit process, not simply when a lender approves or denies an application.

Financial institutions should ensure that applicants receive consistent treatment when requesting information, submitting an application, providing documentation, receiving loan pricing and terms, obtaining property valuations, receiving an approval or denial, and servicing an existing loan.

Fair Lending and Mortgage Appraisals

Fair lending protections can also apply to residential property appraisals and other written valuations used in mortgage lending.

Creditors subject to applicable ECOA valuation requirements must provide applicants with copies of appraisals and other written valuations developed in connection with certain applications secured by a first lien on a dwelling.

Applicants should receive property valuations without unlawful discrimination based on characteristics protected by federal law.

Equal Housing Opportunity

The Equal Housing Opportunity symbol communicates a commitment to fair housing and nondiscrimination in housing-related transactions.

Mortgage lenders and other housing-related businesses may be subject to specific requirements concerning Equal Housing Opportunity notices, logos, advertising, or fair housing posters depending on the type of institution, program participation, and applicable federal regulations.

Fair Lending Requirements for FHA-Approved Mortgagees

FHA-approved mortgagees are subject to additional U.S. Department of Housing and Urban Development requirements concerning fair housing notices.

HUD requires applicable FHA mortgagees to prominently display a fair housing poster at each office participating in residential real estate-related transactions so that the notice is readily apparent to individuals seeking residential real estate or brokerage services.

FHA mortgagees must also follow applicable Equal Housing Opportunity logo requirements for public-facing materials.

How Can Consumers Report Mortgage Lending Discrimination?

Consumers who believe they have experienced housing-related lending discrimination may have the right to file a complaint with the appropriate federal agency.

Complaints involving discrimination prohibited by the Fair Housing Act may be filed with the U.S. Department of Housing and Urban Development (HUD). Other fair lending matters may fall within the jurisdiction of the Consumer Financial Protection Bureau or the financial institution's applicable federal regulator.

Is a Fair Lending Poster Federally Required?

Whether a particular fair lending or Equal Housing Opportunity poster is required depends on the type of financial institution, lending activity, federal program participation, and applicable regulatory requirements.

For example, HUD requires applicable FHA-approved mortgagees to prominently display a fair housing poster at offices participating in residential real estate-related transactions.

This Fair Lending & Equal Housing Opportunity Poster can help communicate federal nondiscrimination principles, but financial institutions should determine which specific notices, logos, disclosures, and posting requirements apply to their operations before relying on a general fair lending poster for regulatory compliance.