Fair Lending Laws

Fair lending regulations specify the fair treatment of customers. There are a multitude of protections for customers from unfair treatment under the Fair Housing Act (FHA) and the Equal Credit Opportunity Act (ECOA) that must be followed. These protections begin from the moment a customer asks general questions, inquires about a loan, or an application is taken.


In addition, it is imperative to be in compliance for notifications of action taken, including the process for communication when an applicant is denied. The role of the Consumer Finance Protection Bureau (CFPB) is also explained along with the regulations, rules, and principles that must be followed. Specifics are presented to make sure advertisements are clear and contain certain details to prevent unfair and deceptive language that would cause customers to be confused. Finally, the purposes of the Home Mortgage Disclosure Act (HMDA) are presented and the uses for the data collected from mortgage files.


The course covers the following objectives:

 - Explain the importance of fair lending in the mortgage banking world
 - Provide details for the Consumer Finance Protection Bureau (CFPB)
 - Give ways to prevent unfair, deceptive, and abusive lending


The course covers the following topics:

 - The Fair Housing Act
 - The Equal Credit Opportunity Act (ECOA), Regulation B
 - Unfair, Deceptive, and Abusive Acts or Practices (UDAAP)
 - Anti-predatory lending and non-traditional mortgage rules
 - Home Mortgage Disclosure Act (HMDA), Regulation C


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