Federal Mortgage LawsQuestion 36 of 400
Under ECOA, a lender may consider an applicant's age in a credit decision only when:
a.The applicant is over 62 and the lender wants to deny the loan
b.Age is used in an empirically derived, demonstrably sound credit scoring system, and the elderly are not assigned a negative factor
c.The applicant is under 25
d.Age is never permitted to be considered at all
Explanation
ECOA generally bars age discrimination, but age may be used in an empirically derived, demonstrably and statistically sound credit scoring system, provided applicants 62 or older are not treated less favorably. A lender cannot use age simply to deny elderly or young applicants. Age is not absolutely barred; it is restricted to defined, non-discriminatory uses.
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