What are my responsibilities as a lender under the Fair Housing Act?

A Mortgagee (Lender) must verify that its operations comply with applicable state and federal fair lending laws including the:
  • Fair Housing Act (42 U.S.C. 3601 et seq.) 
  • Equal Credit Opportunity Act  (ECOA) (15 U.S.C. 1691 et seq.)
  • Federal Truth in Lending Act (15 U.S.C. 1601 et seq.) 

Mortgagees must also:
  • Ensure that the procedures for reviewing rejected applications against ECOA and applicable state and federal fair lending laws and documenting review results are outlined in its QC plan.
  • Ensure that a fair housing poster is prominently displayed in the Mortgageeā€™s home office and any branch offices that deal with Borrowers and the general public.
  • Ensure that fair housing violations or instances of discrimination are immediately reported to the Office of Fair Housing and Equal Opportunity (FHEO). 
For more detailed information please review Handbook 4000.1 V.A.2. at https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.

Topic Number: KA-03855