ECOA is the foundational federal anti-discrimination law in lending. It applies to any creditor extending credit, including mortgage lenders.
Protected classes under ECOA
- Race or color
- Religion
- National origin
- Sex
- Marital status
- Age (excluding minors)
- Receipt of income from public assistance
- Good faith exercise of rights under consumer credit protection laws
Implementation
ECOA is implemented through Regulation B (Reg B), which provides operational requirements for lenders.
Marketing implications for mortgage
ECOA affects how lenders can target advertising. Custom audiences and lookalike audiences on Meta cannot exclude protected classes or use proxies for them (e.g., excluding ZIP codes that correlate with protected-class concentrations). HUD has issued specific guidance on lawful audience targeting in mortgage advertising. Lenders running Meta ads in mortgage are subject to additional restrictions on detailed targeting, geography, and audience composition.
Adverse action notices
Reg B requires lenders to provide written adverse action notices when denying credit, including the principal reason(s) for the denial. This applies to mortgage applications declined at the loan-officer level, not just at underwriting.
