What federal act prohibits discrimination in lending practices?

The correct choice addresses the legal framework established to prevent discrimination in lending based on certain protected characteristics. The Equal Credit Opportunity Act (ECOA) explicitly prohibits lenders from discriminating against applicants based on race, color, religion, national origin, sex, marital status, or age, among other factors. This act is crucial as it ensures that all individuals have equal access to consumer credit, thereby promoting fairness and equality in lending practices.

Understanding and applying the provisions of the ECOA is essential for lenders and real estate professionals. This act empowers individuals by allowing them to seek loans without facing barriers or biases, which is fundamental to promoting broader access to housing and financial resources.

The other acts mentioned focus on different aspects of discrimination or consumer protection but do not specifically target lending practices. For instance, the Fair Housing Act primarily addresses discrimination in housing, the Equal Employment Opportunity Act pertains to workplace discrimination, and the Consumer Protection Act encompasses a range of protections for consumers but does not specifically focus on lending discrimination. Thus, the ECOA stands out as the key legislation regarding equal treatment in credit and loan access.