Under which act are lenders required to evaluate a borrower's creditworthiness without discrimination?

The correct answer is the Equal Credit Opportunity Act (ECOA). This act was established to prohibit discrimination in any aspect of credit transactions. It requires lenders to evaluate a borrower's creditworthiness based on objective criteria, such as income, credit history, and ability to repay, without regard to race, color, religion, national origin, sex, marital status, or age. This ensures that all borrowers are treated equally and fairly in the lending process.

The Fair Housing Act primarily focuses on preventing discrimination in housing-related transactions, including the sale or rental of homes and the provision of housing services. While it touches on similar issues of discrimination, it does not specifically address creditworthiness assessments made by lenders.

The Home Mortgage Disclosure Act (HMDA) is concerned with providing the public with information about mortgage lending patterns. Its main purpose is to assist in identifying discriminatory lending practices by requiring lenders to report data about their mortgage applications and originations.

The Truth in Lending Act (TILA) aims to promote informed use of consumer credit by requiring clear disclosure of key terms of the lending agreement, such as interest rates and credit costs. It focuses on transparency rather than on the evaluation of creditworthiness.

Thus, the ECOA is the key legislation that explicitly mandates the evaluation