Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

Individuals with public assistance income cannot be discriminated against under which act?

1. Equal Housing Act

2. Fair Credit Reporting Act

3. Equal Credit Opportunity Act

4. Community Reinvestment Act

The correct answer is: Equal Credit Opportunity Act

The Equal Credit Opportunity Act (ECOA) specifically prohibits discrimination in any aspect of credit transactions based on various protected characteristics, one of which includes public assistance income. This means that lenders cannot refuse to extend credit or treat applicants differently solely because they receive public assistance. The essence of the ECOA is to ensure that all individuals have equal access to credit opportunities, irrespective of their source of income, including forms of public assistance. The other acts mentioned, while important in their respective areas, do not specifically address discrimination based on public assistance income in the way ECOA does. The Equal Housing Act focuses on housing discrimination, whereas the Fair Credit Reporting Act and the Community Reinvestment Act deal more with credit reporting and the provision of financial services in specific communities, respectively. Therefore, the ECOA is the most relevant law concerning discrimination against individuals with public assistance income.