Cornelius Jackson
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urchasing a home is one of the largest investments one can make in life. The transaction of buying a home involves large sums of money where if someone takes advantage of you, they can walk away with substantial amounts at your expense. Fortunately, there are numerous mortgage rules in place to protect consumers against irresponsible and dishonest lenders. Although there is no sure way to eliminate risk completely, consumer protection laws present better odds to home buyers. Some of the mortgage rules that protect consumers are discussed below.
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1. FAIR LENDING. The mortgage industry is regulated by certain laws that prohibit lenders from any form of discrimination to consumers in the mortgage lending arena. The Equal Credit Opportunity Act (ECOA) made it illegal for lenders to practice any form of discrimination against borrowers based on one’s race, color, religion, nationality, sex, marital status, age. It also prohibits lenders from discriminating a borrower whether all or part of the borrower’s income comes from a public assistance program, or whether the borrower has in good faith exercised a right under the Consumer Credit Protection Act. Moreover, the Fair Housing Act prohibits discrimination in residential real estate transactions based on one’s race, color, religion, sex, handicap, familial status, or nationality of origin. The ECOA and Fair Housing Act laws apply throughout the loan process, from the time of inquiry until the time you finish paying the loan.
THE POWER IS NOW MAGAZINE | FEBRUARY 2021
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HERE ARE SOME WAYS THROUGH WHICH THE MORTGAGE INDUSTRY ALREADY PROTECTS CONSUMERS
