Which federal law prohibits discrimination in mortgage lending?

The Equal Credit Opportunity Act (ECOA) is the federal law that specifically prohibits discrimination in mortgage lending. This legislation aims to ensure that all individuals have equal access to credit, regardless of factors such as race, color, religion, national origin, sex, marital status, age, or reliance on public assistance. By creating these protections, the ECOA seeks to eliminate any unfair treatment that might arise in the lending process, allowing all qualified borrowers the opportunity to obtain loans.

The other laws mentioned serve different purposes: The Housing Act primarily focuses on fair housing practices and combating discrimination in housing, while the Community Reinvestment Act encourages financial institutions to meet the credit needs of all communities, particularly low- and moderate-income neighborhoods, rather than directly addressing discrimination in lending itself. The Truth in Lending Act is designed to promote informed use of consumer credit by requiring clear disclosure of terms and costs involved in borrowing, without specifically addressing discrimination. Understanding the specific scope and objectives of these laws highlights why the Equal Credit Opportunity Act is the correct answer in the context of discrimination in mortgage lending.