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F ederal Reserve Ban k DALLAS, TEXAS of Dallas 75222 C ir c u l a r No. 78-32 March 24, 1978 REGULATION B—EQUAL CREDIT OPPORTUNITY New Pamphlet on " C r e d i t R ig hts in Housing" TO ALL STATE MEMBERS BANKS IN THE ELEVENTH FEDERAL RESERVE DISTRICT: A new Federal R e s e r v e c o n s u m e r p am p hlet exp la ining c r e d i t rig h t s in housing is now a v a ila b le for p u b lic d i s t r ib u ti o n . T h e p am phlet is e ntitled " T h e Equal C re d it O p p o rtu n ity Act a n d . . .C re d it Rights in H o u sin g ." It s e e k s to e d u c a te c o n s u m e r s a n d le n d e rs abou t major p ro v is io n s of the Equal C re d it O p p o rtu n ity Act a s it affects h o u s in g . T h a t Act fo rb id s discrim ina tion in c r e d i t t r a n s a c tio n s on th e b a sis of s e x o r marital s t a t u s , r a c e , c o lo r, re lig io n , national o r i g i n , a g e , re c e ip t of income from pu blic a s s i s t a n c e p r o g r a m s , a nd good faith e x e r c is e of rig h t s u n d e r th e C on sum er C re d it Protection Act. T h e h o u s in g pa m phlet also e x p la in s the Home Mortgage D isclo sure Act which r e q u i r e s most l e n d e rs in metropolitan a r e a s to inform the p u b lic once ay e a r w h e re they make t h e ir m ortgage a n d home im provement loans. O ther c o n s u m e r pa m p h le ts w hich the Board h a s p u b lis h e d include: — — — — — — T h e Equal C re d it O p p o rtu n ity Act a n d T h e Equal C r e d it O p portunity Act a n d T h e Equal C re d it O p p o rtu n ity Act and Fair C r e d it Billing If you Borrow to Buy Stock What T r u t h in Lending Means to You Age Incidental C re d ito rs Women I s u g g e s t you c o n s id e r d i s t r i b u t i n g copies of the new pamphlet to y o u r d e p o s i to rs and c u s to m e r s t h ro u g h such means a s lobby d is p la y a n d inclusion in monthly state ments . Copies of the new pa m p hle t may be o btained f r e e of c h a r g e from the Bank a nd Public Information D epartm ent of this B ank , Ext. 6267. S in c e re ly y o u r s , Robert H . Boykin F ir s t Vice P r e s id e n t E n c lo s u re Banks and others are encouraged to use the following incoming W A T S numbers in contacting this Bank: 1-800-492-4403 (intrastate) and 1-800-527-4970 (interstate). For calls placed locally, please use 651 plus the extension referred to above. This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) Federal Enforcement A gencies Equal Credit Opportunity Act National Banks Comptroller of the Currency Consumer Affairs Division Washington, D.C. 20219 State Member Banks Federal Reserve Bank serving the district in which the State member bank is located. Nonm ember Insured Banks Federal Deposit Insurance Corporation Regional Director for the region in which the nonm em ber insured bank is located. Savings Institutions Insured by the FSLIC and Members of the FHLB System (except for Savings Banks insured by FDIC) The Federal Home Loan Bank Board Supervisory Agent in the district in which the institution is located. Federal Credit Unions Regional office of the National Credit Union Administration serving the area in which the Federal credit union is located. Creditors Subject to Civil Aeronautics Board Director, Bureau of Enforcement Civil Aeronautics Board 1825 Connecticut Avenue, N.W. Washington, D.C. 20428 Creditors Subject to Interstate Commerce Com m ission Office of Proceedings Interstate Commerce Commission Washington, D.C. 20523 Creditors Subject to Packers and Stockyards Act Nearest Packers and Stockyards Administration area supervisor. Small B usiness Investm ent Companies U.S. Small Business Administration 1441 L Street, N.W. Washington, D.C. 20416 Brokers and Dealers Securities and Exchange Commission Washington, D.C. 20549 Federal Land Banks, Federal Land Bank A ssociations, Federal Intermediate Credit Banks and Production Credit A ssocia tions Farm Credit Administration 490 L ’Enfant Plaza, S.W. Washington, D.C. 20578 Mortgage Bankers, Consumer Finance Com panies and All Other Creditors FTC Regional Office for region in which the creditor operates or Federal Trade Commission Equal Credit Opportunity Washington, D.C. 20580 Any com p lain ts may also be referred to the Civil Rights Division of the Department of Justice, Washington, D.C. 20530 Board of Governors of the Federal Reserve System Washington, D.C. 20551 (January 1978) If you’re in the market for a housing loan, you should know about a new Federal law that protects your credit rights. The Equal Credit Opportunity Act prohibits discrimi nation because of your race, color, religion, n atio n al origin, sex, m arita l s ta tu s , or age when you apply for a mortgage or home improvement loan. It also prohibits discrimination because of the ra c e or n atio n al origin of the people who live in the neighborhood where you live or want to buy your home. And, it prohibits discrimination because you receive income from a public a ssista n c e program, such as Aid to Families with Dependent Children or Social Security. This pamphlet describes the most important provisions of the Act and the regulation issued by the Federal Re serve Board to carry it out. TOI HIMII&AIL M i l , The law does not guarantee that you will get credit. Lenders may con tinue to consider your income, expenses, debts, credit record, and reliability to determine whether you’re credit worthy. But, they must apply those tests fairly and with out discrimination. This means that because of your race, sex, or marital status—or because of any other factor prohibited by the Act—a lender m ay not: — discourage you in any way from applying for a loan. — refuse to make a loan if you qualify, and if the lender offers the type of loan you seek. — lend you money on terms different from those granted another person with similar income, ex penses, credit history, and collateral. i©MI [MPCMTAOT SIFlCDIFlOo practices that kept w o m e n and m in o rity g r o u p s out of the housing loan market in the past are now prohibited. For example, a creditor m a y n o t : — rely on a property appraisal that considers the racial makeup of the neighborhood. — ask about your birth control practices or child bearing plans. A creditor may not assume that you will have children or discount your income for that reason. — discount or refuse to consider reliable alimony, child support, or separate maintenance payments— although you do not have to disclose such income unless you want to do so to support your appli cation. — discount or refuse to consider reliable income from part-time employment or public assistance. — if you’re creditworthy, require another signature on the loan—although a lender may need a spouse’s or co-owner’s signature, for example, on other mortgage papers. A creditor also may not deny you credit j u s t b e c a u s e r e a c h a c e r t a i n a g e o r r e t i r e — or refuse to count retirement benefits. But, your age may be con sidered in connection with such factors as the length of the loan, the downpayment, and the security you offer. Ni©iyM@ you m,v ,iSo be interested in the Home Mortgage Disclosure Act, which requires most lending institutions in metropolitan areas to let the public know once a year where they make their mortgage ahd home improvement loans. You can ask to see the information at any time at your bank, savings and loan, or credit union. This disclosure statement will not tell you where loans were denied or why. But, it can help customers, com munity groups, and local officials work with lenders to meet neighborhood needs for housing credit. IF©R AIW ICI AM® mULIF. f», more information about the Equal Credit Opportunity Act or the Home Mortgage Disclosure Act—or for advice or help with complaints—write to any Federal Reserve Bank* or to the Division of Consumer Affairs, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. y o u IF A IjDAM © IM I© „ 1 A lender may not stall your loan application. You must be notified whether your loan has been approved within 30 days after your application and any necessary appraisals, credit checks, or government approvals are completed. If your loan is denied, the notice must be in writing, and the lender must either tell you the specific reasons for the de nial or tell you of your right to request the reasons. If you think that you have been discriminated against, you may sue for actual damages, plus a penalty fee in some cases. You may also be awarded reasonable at torney’s fees and court costs in a successful lawsuit. Another Federal law, the Fair Housing Act, prohibits discrimination in the sale, rental, or financing of housing because of your race, color, religion, sex, or national origin. For more information, write to the Assistant Secre tary for Fair Housing and Equal Credit Opportunity, De partment of Housing and Urban Development, 451 7th Street, S.W., Washington, D.C. 20410. If you are interested in local cooperative efforts to in crease mortgage lending and improve housing in urban areas, write to the Urban Reinvestment Task Force, 1120 19th Street, N.W., Washington, D.C. 20036. 'L ocated in Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas, and San Francisco.
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