National Real Estate Practice Exam 2025 – 400 Free Practice Questions to Pass the Exam

The Federal Equal Credit Opportunity Act (ECOA) is primarily aimed at eliminating discrimination in credit transactions. This means it prohibits lenders from discriminating against applicants on the basis of race, color, religion, national origin, sex, marital status, age, or because they receive public assistance. The goal is to create a level playing field where all applicants have an equal opportunity to obtain credit regardless of their demographic characteristics.

ECOA plays a critical role in promoting fairness and ensuring that access to credit is based on an applicant's creditworthiness and ability to repay, rather than personal characteristics that should not influence lending decisions. This law helps foster equal treatment in the lending process, thereby supporting broader social equity.

While other choices touch upon aspects of lending, such as providing loans based on financial status, facilitating loans for qualified buyers, or ensuring equal rent pricing, none of these accurately capture the fundamental aim of ECOA, which is to combat discrimination in credit transactions.