There are a few laws that protect those applying for mortgage loans:
Fair Housing Act- prohibits discrimination in residential real estate transactions on the basis of race, color, religion, sex, handicap, familial status, or national origin.
- Equal Credit Opportunity Act- prohibits lenders from discriminating against credit applicants in any aspect of a credit transaction on the basis of race, color, religion, national origin, sex, marital status, age, whether all or part of the applicant’s income comes from a public assistance program, or whether the applicant has in good faith exercised a right under the Consumer Credit Protection Act.
These laws were designed to ensure a consumer cannot be refused a loan based on the above characteristics. They also cannot be charged more for a loan or offered less favorable loan terms based on such characteristics.