Federal Laws

During the processing of your loan, several federal laws will provide you with protection. The Equal Credit Opportunity Act, the Fair Housing Act, and the Fair Credit Reporting Act prohibits discrimination on the basis of race, color, religion, gender, national origin, marital status, age, the fact the applicant’s income comes from public assistance.

The Fair Housing Act bars inequalities in residential real estate dealings on the basis of race, color, religion, sex, handicap, familial status or national origin. This ban is applicable to the sale of a home to you as well as the choice by a lender to give you a loan.

While there can be great differences in the types and sums of settlement fees charged to borrowers, some may be illegal. You should review your documents carefully and also compare your settlement costs with that of your neighbors.

The Equal Credit Opportunity Act prohibits lenders from discriminating against loan applicants. In order to do so, your lender much report certain data regarding your race, sex, marital status and age when helping you apply for credit.

Discrimination Claims – If you experience discrimination by any lender or agent while you are purchasing a home, you can file a lawsuit against that person or make those in the appropriate federal administrative agency aware of your situation.

Your application must be acted upon by your lender and within 30 days, you must be informed of the action.

Should your loan application be denied, the Equal Credit Opportunity Act obliges your mortgage broker to fully explain in a statement the reasons why it denied your request.

You have a right to obtain a copy of your credit report as well as a copy of your property appraisal.