Question

Who would NOT be considered a member of a protected class under the Equal Credit Opportunity Act when applying for a mortgage loan? a) John, who has four children b) Joseph, who is African-American c) Tabitha, whose primary source of income is public assistance d) Usama, who is a 69-year-old Muslim

Answer 1

Under the Equal Credit Opportunity Act, individuals are protected from discrimination when applying for a mortgage loan. The Act prohibits lenders from discriminating based on race, color, religion, national origin, sex, marital status, age, or receipt of public assistance. Tabitha, who relies on public assistance as her primary source of income, may not be considered a member of a protected class unless her income is used as a negative factor in the lending decision.

Step-by-step explanation:

Under the Equal Credit Opportunity Act (ECOA), a mortgage lender is prohibited from discriminating against an applicant based on certain protected characteristics. These protected classes include race, color, religion, national origin, sex, marital status, age, and receipt of public assistance. Therefore, John with four children, Joseph who is African-American, and Usama who is a 69-year-old Muslim would all be considered members of a protected class.

However, Tabitha, whose primary source of income is public assistance, would not be considered a member of a protected class based solely on her income source. Receipt of public assistance is a protected characteristic under the ECOA, but only if it is used as a negative factor in the decision-making process by the mortgage lender. If Tabitha's application is denied specifically because her income is from public assistance, it could be a violation of the ECOA.

Learn more about Equal Credit Opportunity Act