Under ECOA, a potential borrower who receives public assistance income may not be discriminated against on the basis of what?

• A. Racial background
• B. Receiving public assistance income
• C. Gender
• D. Credit history

Answer: (B)

Under ECOA, lenders may not deny credit or treat an applicant unfavorably because of the income source they rely on, including public assistance. So a borrower who receives public assistance income may not be discriminated against on that basis. This protection ensures government-supported income isn’t used to penalize someone in the loan process. While racial background and gender are also protected under ECOA, this item highlights the specific prohibition related to income from public assistance. Credit history can be a underwriting factor and is not a protected basis under ECOA, so it isn’t the basis ECOA bars in this scenario.