Which law prohibits discrimination in lending, including discrimination based on income?

• A. Truth in Lending Act
• B. Fair Housing Act
• C. Equal Credit Opportunity Act (ECOA)
• D. RESPA

Answer: (C)

Discrimination in lending based on income is addressed by a law that requires lenders to treat applicants fairly in every credit transaction, no matter their income or source of income. The Equal Credit Opportunity Act prohibits denying credit, varying the terms, or applying different underwriting standards because of an applicant’s income origin or other protected characteristics, making it the correct choice. Other laws handle related but different areas: Truth in Lending Act focuses on clear disclosure of loan terms and costs; the Fair Housing Act protects against discrimination in housing-related activities (including some lending aspects) but isn’t the primary rule governing credit decisions; and RESPA covers settlement procedures and closing disclosures.