What is Mortgage Discrimination?

A lender by law must provide mortgages based on the borrowers ability to repay. Denying a loan, or granting a loan with unfair terms and interest rates, based on sex, race, religion, marital status, disability or family status is unlawful and considered Mortgage Discrimination. Being prepared, and understanding your rights as a borrower, can help you prevent becoming a victim of mortgage discrimination.

Do Your Homework

A mortgage is usually the largest investment a person makes in her lifetime. You must be knowledgeable about the process so you know you are getting a fair deal. Pull your credit report before applying for a loan. Check all three bureaus and know your FICO score. This three digit score will be the biggest predictor of the interest rate you will be offered. Keep up on current interest rates so you know if the rate the lender is proposing to you is competitive. Once you have applied and have been offered a  loan, check for hidden fees and high upfront costs. Knowledge is power, do not simply trust the lender to give you the best loan.

Know Your Rights

If your mortgage is denied, the lender is required by law to notify you in writing. Ask for the reason for the mortgage being denied. If the lender cannot provide a legitimate reason, or if it is based on personal reasons, you can file a complaint. Also, if you feel you are being offered unfair terms based on your race or sex, you may report a lender to the Office of Fair Housing and Equal Opportunity.