Which law addresses discrimination patterns in lending?

The law that specifically addresses discrimination patterns in lending is the Equal Credit Opportunity Act (ECOA). This legislation makes it unlawful for lenders to discriminate against applicants based on race, color, religion, national origin, sex, marital status, or age. It ensures that all consumers have equal access to credit and reinforces the importance of fair lending practices in the mortgage industry.

While the Home Mortgage Disclosure Act (HMDA) plays a role in collecting and reporting data about mortgage lending, its primary purpose is not to prohibit discrimination but rather to provide transparency in lending practices. The Fair Housing Act (FHA) also addresses discrimination, but it primarily focuses on housing-related practices rather than specifically on credit and lending. The Truth in Lending Act (TILA) is concerned with disclosing certain credit terms to consumers, ensuring they understand the cost of credit, but it does not directly deal with discrimination patterns in lending.

By understanding the ECOA's provisions, mortgage loan officers can effectively promote fair lending and ensure compliance with this critical regulation.