12 (Twelve) Lending Laws First Time Home Buyers Should be Aware Of

Hello again and welcome. Despite the existence of fair lending laws, the risk of discrimination still exist. As first time home buyers, you can help protect yourself by knowing what to look out for. Fair lending discrimination is intentionally treating certain applicants less favorably, based on protected characteristics like race, sex, religion, color, disability, or national origin. This type of discrimination is illegal and can take many different forms that include but not limited to:

• Refuse to make a mortgage loan or provide other financial assistance for a home.

• Refuse to provide information regarding loans.

• Impose different terms or conditions on a loan, such as different interest rates, points, or fees.

• Discriminate in appraising a home based on protected characteristics.

• Condition the availability of a loan on a person's response to harassment.

• Discourage a person from applying for credit solely because of their protected characteristic, such as a disability.

• Refuse to offer credit to a person due to their sex even if they qualify.

• Offering less favorable terms to different people with similar qualifications based on their religion.

• Basing approval decisions on the applicant's race.

• Encouraged or told to apply for a type of loan that has less favorable terms (for example, a higher interest rate).

• Refused credit even though you qualify based on advertised requirements.

• Offered credit with a higher rate than you applied for, even though you qualify for a lower rate based on advertised requirements.

If you believe you have experienced discrimination, taking action is free. Options include, filing a complaint with the Federal Trade Commission (FTC) and with the Consumer Financial Protection Bureau (CFPB). You can also notify the U.S. Department of Housing and Urban Development (HUD).

As always, thank you so much for stopping by. Remember, if you are thinking of purchasing your first home, please contact us. We are here to help. We have been helping Houston first time home buyers since 2011 and we can help you. I hope you have an amazing day. Until next time...Diana