Credit gives the word to pay either by repaying it or returning those resources later. In other words, this credit is the method of making the reciprocity formal, legally enforceable, and of course, extensible to a vast group of people who are not related.
However, the resources provided may be financial or have goods or services, like consumer credit. The credit covers any form of deferred payment. Credit generally gets extended by the creditor, the debtor or lender, and sometimes the borrower.
The Equal Credit Opportunity is the regulation or law which prohibits lenders from discriminating against borrowers or applicants for credit, on the basis of several factors. These include age, gender, sex, religion, marital status, religion, ethnicity, color, and race. This became a law in 1974 and forbids any discrimination in lending or sanctioning credit in the U.S.
The Equal Credit Opportunity Act is important in the real estate or property sector. This is because it is a principle to be followed by lenders, i.e. ensuring equal access to credit or loans for all. Hence, people from all backgrounds and walks of life may apply for home loans or mortgages.
Credit gives the word to pay either by repaying it or returning those resources later. In other words, this credit is the method of making the reciprocity formal, legally enforceable, and of course, extensible to a vast group of people who are not related.
However, the resources provided may be financial or have goods or services, like consumer credit. The credit covers any form of deferred payment. Credit generally gets extended by the creditor, the debtor or lender, and sometimes the borrower.
Credit or a home loan/mortgage is necessary for most people, when it comes to purchasing any real estate asset or property. The ECOA helps in stopping discrimination in sanctioning credit on the basis of several factors, as mentioned. These factors include age, public support or assistance receipt, marital status, ethnicity, origin, sex/gender, race, and color, among others. This law keeps lenders from making any discrimination against any applicants for credit on the basis of factors that do not impact their repayment abilities. This Act became an official law in the year 1974.
This Act represents a helpful system for the real estate sector, especially mortgage applicants, since they do not have to worry about any discrimination on the basis of factors which do not have a direct link to their repayment abilities for the same. Quite naturally, it also has a positive effect on encouraging more home ownership.
