Federal Mortgage LawsQuestion 6 of 400
During a loan interview, a loan originator asks a female applicant whether she plans to have children, implying it could affect her income. Under ECOA, this question is:
a.Permitted if the applicant answers voluntarily
b.A prohibited inquiry based on sex and potential childbearing
c.Required for accurate income analysis
d.Permitted only for conventional loans
Explanation
ECOA prohibits discrimination based on sex and generally bars questions about birth control or childbearing plans because they can be used to discriminate. A creditor may not assume income will be reduced due to childbearing. Voluntary answers or loan type do not make the inquiry lawful.
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