What is the Fair Lending Act?
The Fair Lending Act is a law in Washington that governs how banks and other lenders make their loans to customers. It is designed to provide equal access to credit for all individuals, regardless of race, color, religion, national origin, sex, marital status, age, or source of income. The Fair Lending Act is designed to ensure that lenders do not discriminate when making lending decisions. It requires lenders to consider a variety of factors such as income, debts, assets, and credit history when making credit decisions. The Fair Lending Act requires lenders to consider all applicants equally, and to provide fair and equal loan terms and conditions. The Fair Lending Act also requires lenders to provide borrowers with important information about their loan prior to the loan being made. This includes a written loan estimate that includes the loan’s interest rate, fees, and terms. The loan estimate must be provided to potential borrowers and must be accurate and complete. The Fair Lending Act also protects borrowers from unfair and deceptive practices. Lenders are prohibited from charging excessive fees and interest rates, and they must provide customers with clear and reasonable disclosures about their loan products and services. The Fair Lending Act is a key law that enables consumers in Washington to get the financial services and products they need while protecting them from fraudulent and discriminatory practices. It provides important safeguards for Washington borrowers and lenders.
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