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Credit Discrimination: § 100.125 Discrimination in the purchasing of loans.

(a) It shall be unlawful for any person or entity engaged in the purchasing of loans or other debts or securities which support the purchase, construction, improvement, repair or maintenance of a dwelling, or which are secured by residential real estate, to refuse to purchase such loans, debts, or securities, or to impose different terms or conditions for such purchases, because of race, color, religion, sex, handicap, familial status, or national origin.

(b) Unlawful conduct under this section includes, but is not limited to:

Credit Discrimination: § 100.130 Discrimination in the terms and conditions for making available loans or other financial assistance.

(a) It shall be unlawful for any person or entity engaged in the making of loans or in the provision of other financial assistance relating to the purchase, construction, improvement, repair or maintenance of dwellings or which are secured by residential real estate to impose different terms or conditions for the availability of such loans or other financial assistance because of race, color, religion, sex, handicap, familial status, or national origin.

(b) Unlawful conduct under this section includes, but is not limited to:

Credit Discrimination: § 100.140 General rules.

(a) Voluntary self-testing and correction. The report or results of a self-test a lender voluntarily conducts or authorizes are privileged as provided in this subpart if the lender has taken or is taking appropriate corrective action to address likely violations identified by the self-test. Data collection required by law or any governmental authority (federal, state, or local) is not voluntary.

(b) Other privileges. This subpart does not abrogate any evidentiary privilege otherwise provided by law.

Credit Discrimination: § 100.141 Definitions.

As used in this subpart:

Lender means a person who engages in a residential real estate-related lending transaction.

Residential real estate-related lending transaction means the making of a loan:

(1) For purchasing, constructing, improving, repairing, or maintaining a dwelling; or

(2) Secured by residential real estate.

Credit Discrimination: § 100.142 Types of information.

(a) The privilege under this subpart covers:

(1) The report or results of the self-test;

(2) Data or factual information created by the self-test;

(3) Workpapers, draft documents and final documents;

(4) Analyses, opinions, and conclusions if they directly result from the self-test report or results.

(b) The privilege does not cover:

Credit Discrimination: § 100.143 Appropriate corrective action.

(a) The report or results of a self-test are privileged as provided in this subpart if the lender has taken or is taking appropriate corrective action to address likely violations identified by the self-test. Appropriate corrective action is required when a self-test shows it is more likely than not that a violation occurred even though no violation was adjudicated formally.

(b) A lender must take action reasonably likely to remedy the cause and effect of the likely violation and must:

Credit Discrimination: § 100.144 Scope of privilege.

The report or results of a self-test may not be obtained or used by an aggrieved person, complainant, department or agency in any:

(a) Proceeding or civil action in which a violation of the Fair Housing Act is alleged; or

(b) Examination or investigation relating to compliance with the Fair Housing Act.

[62 Fed. Reg. 66,432 (Dec. 18, 1997)]

Credit Discrimination: § 100.145 Loss of privilege.

(a) The self-test report or results are not privileged under this subpart if the lender or person with lawful access to the report or results:

(1) Voluntarily discloses any part of the report or results or any other information privileged under this subpart to any aggrieved person, complainant, department, agency, or to the public; or

(2) Discloses the report or results or any other information privileged under this subpart as a defense to charges a lender violated the Fair Housing Act; or

Credit Discrimination: § 100.146 Limited use of privileged information.

Notwithstanding § 100.145, the self-test report or results may be obtained and used by an aggrieved person, applicant, department or agency solely to determine a penalty or remedy after the violation of the Fair Housing Act has been adjudicated or admitted. Disclosures for this limited purpose may be used only for the particular proceeding in which the adjudication or admission is made. Information disclosed under this section remains otherwise privileged under this subpart.

[62 Fed. Reg. 66,432 (Dec. 18, 1997)]

Credit Discrimination: § 100.147 Adjudication.

An aggrieved person, complainant, department or agency that challenges a privilege asserted under § 100.144 may seek a determination of the existence and application of that privilege in:

(a) A court of competent jurisdiction; or

(b) An administrative law proceeding with appropriate jurisdiction.

[62 Fed. Reg. 66,432 (Dec. 18, 1997)]

Credit Discrimination: § 100.148 Effective date.

The privilege under this subpart applies to self-tests conducted both before and after January 30, 1998, except that a self-test conducted before January 30, 1998 is not privileged:

(a) If there was a court action or administrative proceeding before January 30, 1998, including the filing of a complaint alleging a violation of the Fair Housing Act with the Department or a substantially equivalent state or local agency; or

Credit Discrimination: § 100.203 Reasonable modifications of existing premises.

(a) It shall be unlawful for any person to refuse to permit, at the expense of a handicapped person, reasonable modifications of existing premises, occupied or to be occupied by a handicapped person, if the proposed modifications may be necessary to afford the handicapped person full enjoyment of the premises of a dwelling.

Credit Discrimination: § 100.204 Reasonable accommodations.

(a) It shall be unlawful for any person to refuse to make reasonable accommodations in rules, policies, practices, or services, when such accommodations may be necessary to afford a handicapped person equal opportunity to use and enjoy a dwelling unit, including public and common use areas.

(b) The application of this section may be illustrated by the following examples:

Credit Discrimination: § 100.400 Prohibited interference, coercion or intimidation.

(a) This subpart provides the Department’s interpretation of the conduct that is unlawful under section 818 of the Fair Housing Act.

(b) It shall be unlawful to coerce, intimidate, threaten, or interfere with any person in the exercise or enjoyment of, or on account of that person having exercised or enjoyed, or on account of that person having aided or encouraged any other person in the exercise or enjoyment of, any right granted or protected by this part.

Credit Discrimination: 1.1.1 Credit Discrimination Is a Widespread Problem

Credit discrimination permeates American society. Protected class members face difficulties obtaining market-rate first and second mortgages. Many banks do not maintain branches in communities of color. The disparity in mortgage approval rates between White applicants and applicants of color, as well as disparities in the terms on which mortgage credit is offered, are evidence that discrimination in the marketplace persists.1

Credit Discrimination: 1.1.2 Laws Against Credit Discrimination Provide Far-Reaching Remedies

A series of federal and state statutes provides significant remedies to victims of credit discrimination. Violations of the Equal Credit Opportunity Act (ECOA), the Fair Housing Act (FHA), and 42 U.S.C. §§ 1981 and 1982 (hereinafter referred to as the federal Civil Rights Acts) can result not only in recovery of out-of-pocket damages but in recovery for such intangible injuries as humiliation, deprivation of rights, and damage to credit rating. These statutes also provide for punitive damages, equitable relief, and attorney fees.

Credit Discrimination: 1.1.3 Growth in the Utilization of Credit Discrimination Laws

Despite the far-reaching remedies available, credit discrimination laws were not utilized significantly until the 1990s and may not yet be fully utilized. Throughout the 1980s only a small number of Equal Credit Opportunity Act (ECOA) cases were brought each year. The Fair Housing Act (FHA), the federal Civil Rights Acts, and state anti-discrimination statutes were rarely applied to credit discrimination.

Credit Discrimination: 1.1.4 Effective Uses of Credit Discrimination Statutes

Listed below are some practices that may be attacked through the use of credit discrimination statutes. These statutes may be used to attack common discriminatory practices and to challenge many different types of creditor practices. They may be used by individuals, groups, or in class actions. Some of the statutes also include procedural requirements that apply even when discrimination cannot be established.