What legislation prohibits lenders from rejecting applications based on race or color?

The Fair Housing Act is a key piece of legislation that prohibits discrimination in housing-related transactions, which includes mortgage lending. This act specifically aims to eliminate barriers that individuals may face in securing housing based on protected characteristics such as race, color, religion, sex, national origin, familial status, and disability. By preventing lenders from rejecting loan applications based on race or color, the Fair Housing Act works to promote equality in housing opportunities and support fair lending practices across the board.

While the other pieces of legislation mentioned play important roles in consumer protection and preventing discrimination, they focus on different aspects of lending and housing. The Equal Credit Opportunity Act, for instance, also addresses discrimination in credit applications, but it encompasses a broader range of protected classes and is more focused on the lending process itself rather than housing. The Community Reinvestment Act encourages banks to meet the credit needs of their local communities, particularly low- and moderate-income neighborhoods, but does not specifically address discrimination based on race or color. The Fair and Accurate Credit Transactions Act primarily deals with consumer credit reporting and privacy issues, rather than lending discrimination. Thus, the Fair Housing Act is the legislation that most directly addresses the rejection of mortgage applications based on race or color.