Under which act are lenders prohibited from discriminating based on protected classes?

The Fair Housing Act is the legislation that specifically prohibits lenders and other housing-related entities from discriminating against individuals based on protected classes, which include race, color, national origin, religion, sex, familial status, and disability. This act was created to ensure that all individuals have equal opportunity in housing and mortgage lending, aiming to eliminate both overt discrimination and practices that may appear neutral but disproportionately affect certain groups.

Understanding the scope of the Fair Housing Act highlights its significance in promoting equity in housing opportunities. It not only impacts how mortgage lenders assess applications but also encompasses a broader spectrum of housing-related activities, ensuring that no one is denied access to housing based upon these protected characteristics. This foundational principle of non-discrimination is key to fostering fair lending practices within the mortgage industry.