Final answer:
The Equal Credit Opportunity Act does not allow lenders to discriminate against potential borrowers on the basis of gender, race, or national origin. It was enacted to prevent discrimination in the lending process and to promote fairness and transparency.
Step-by-step explanation:
The federal Equal Credit Opportunity Act (ECOA) is designed to prevent discrimination in the lending process. Under this law, lenders are prohibited from discriminating against potential borrowers on the basis of characteristics such as gender, race, ethnicity, and under certain circumstances, age. The legislation was instrumental in ending unfair practices that had previously disadvantaged certain groups, particularly married women when it came to accessing credit. Therefore, it would be incorrect to say that the ECOA allows discrimination on any of the bases listed (race, gender, or national origin).
It's important to note that the ECOA mandates that lenders cannot discriminate on the basis of this information and that they must also provide disclosures about their loan distribution geographically, as well as by sex and race of the loan applicants. This ensures transparency and accountability, upholding the principles of fair lending laid out by the act.