5 Facts about the Fair Housing Act

Have you ever wondered what that strange looking house icon was that is all over your real estate agent or loan originator’s marketing materials? It represents a commitment to provide fair and equitable access to home ownership. This year marks the 50th anniversary of the Fair Housing Act, a law that fights housing discrimination based on protected classes. Here are some facts to know regarding this important legislation:

1. What is the Fair Housing Act and why was it created?
At its core, the Fair Housing Act was enacted to ensure equal access to homeownership, regardless of class. It was also created in response to rampant discriminatory housing practices brought to light by the Civil Rights Movement in the 1960s. Previous attempts to pass variations of fair housing legislation occurred in the early 1960s but it wasn’t until the Fair Housing Act of 1968 that these took effect.

The Fair Housing Act protects seven classes –  race, color, religion, national origin, sex, disability and familial status.

3. How is the Equal Credit Opportunity Act (ECOA) different than the Fair Housing Act?
Both Acts offer protection against discrimination. The ECOA forbid creditors to discriminate based on race, color, religion, national origin, sex, marital status age, or if applicants receive income from a public assistance program. Where the ECOA specifically protects borrowers against discrimination, the Fair Housing Act forbids discrimination in all aspects of residential real-estate related transactions (including rentals) in the seven protected classes previously listed. 

4. What are some examples of mortgage discrimination that would be deemed unlawful by the Fair Housing Act?
According to the U.S. Department of Housing and Urban Development, the following are prohibited examples of discrimination in mortgage lending*:  

• Refusal to make a mortgage loan or refinance a mortgage loan
• Refusal to provide information regarding loans
• Imposing different terms or conditions on a loan, such as different interest rates, points, or fees
• Refusal to purchase a loan or set different terms or conditions for purchasing a loan
• Discrimination in providing financial assistance for purchasing, constructing, improving, repairing, or maintaining a dwelling or other financial assistance secured by residential real estate

​​​​​​*Discriminatory examples assume decisions are based on one of the protected classes.

5. What should a homebuyer do if they believe they’ve been a victim of discrimination?
Anyone who believes they are a victim of housing discrimination is encouraged to file a complaint with the Department of Housing and Urban Development (HUD). Fair housing complaints can be filed online, or via email, phone or postal mail. Because there are time limits on when a complaint can be filed with HUD after an alleged violation, it’s important to submit a complaint as soon as possible after the incident. You can find more information about the complaint process here.

Mortgage and housing discrimination is against the law. The Motto Mortgage network of offices are committed to upholding fair-housing laws throughout the United States as well as raising awareness of fair-housing issues.