What Are Fair Lending Laws?

Fair lending laws are a set of federal and state regulations that prevent discrimination in the lending process. The key laws include:

• The Fair Housing Act (FHA) is a federal law that was instituted in 1968 to prohibit housing discrimination based on race, color, national origin, religion, sex, familial status, or disability.

• The Fair Employment and Housing Act (FEHA) is a California state-specific regulation introduced in 1959 that provides broader protections to more protected classes (e.g., marital status, sexual orientation) and covers a wider scope of housing-related activities including lending.

• The Equal Credit Opportunity Act (ECOA) is a federal law instituted in 1974 that prohibits lenders from discriminating against borrowers during the credit application process.

Together, these laws aim to promote fairness, transparency, and accountability in the housing finance industry.

What Fair Lending Looks Like in Practice

A lender following fair lending laws will:

• Evaluate you based on your financial qualifications—not your identity

• Provide clear, consistent information about loan terms and rates

• Offer equal access to programs and products for which you qualify

• Treat all borrowers with respect and dignity

If you ever feel that you’ve been treated unfairly during the mortgage process, you can file a complaint with the California Department of Fair Employment and Housing or the U.S. Department of Housing and Urban Development (HUD).

At HomeLoan123, Equity Is at the Core of Everything We Do

We believe that everyone deserves access to safe, affordable home financing. That’s why we’re committed to upholding fair lending practices, expanding access to underserved communities, and making the homeownership process transparent and inclusive. We're not just here to help you get a loan—we're here to help you build a future.