Get Fair Lending Notice, (receipt Style), Re 867 (6/04). Fair Lending Notice, (receipt Style), Re 867

Overt Discrimination, which occurs when a consumer is openly and/or actively discriminated against on a prohibited basis factor. Disparate Treatment, which occurs when members of a prohibited basis group are treated differently than others.

For example, if a lender refuses to make a mortgage loan because of your race or ethnicity, or if a lender charges excessive fees to refinance your current mortgage loan based on your race or ethnicity, the lender is in violation of the federal Fair Housing Act.

The most popular and accepted methods of self-testing are pre-application inquiries or mystery shops in the form of Matched Pair Testing and Monadic Testing and Post-application customer surveys.

Three lending discrimination types → Overt. → Disparate impact. → Disparate treatment.

There is overt evidence of discrimination when a lender openly discriminates on a prohibited basis. Example: A lender offered a credit card with a limit of up to $750 for applicants aged 21-30 and $1500 for applicants over 30. This policy violated the ECOA's prohibition on discrimination based on age.

Types of Lending Discrimination The courts have recognized three methods of proof of lending discrimination under the ECOA and the FHAct: Overt evidence of disparate treatment; • Comparative evidence of disparate treatment; and • Evidence of disparate impact.

This Practice Note explains the features of three common types of loan facilities—overdrafts, term loans and revolving credit facilities and looks at the advantages and disadvantages of each facility, their main characteristics including whether they are committed facilities and the various repayment or prepayment ...

In the most general sense, there are three important elements that a fair lending risk assessment will consider: inherent risk, controls, and residual risk.

Fair lending prohibits lenders from considering your race, color, national origin, religion, sex, familial status, or disability when applying for residential mortgage loans.