HomeGlossaryEqual Credit Opportunity Act
Mortgage Glossary

Equal Credit Opportunity Act

Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker

The Equal Credit Opportunity Act (ECOA) is a federal law prohibiting lending discrimination based on protected characteristics.

What Equal Credit Opportunity Act means

It bars discrimination by race, color, religion, national origin, sex, marital status, age, or receipt of public assistance, and requires reasons for adverse decisions.

Florida example

A Florida applicant denied a loan must receive a written explanation under ECOA. The law ensures credit decisions rest on financial factors, not protected personal characteristics.

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