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For ECOA violations involving mortgage and consumer finance companies:

Federal Trade Commission

Consumer Response Center

Washington, DC 20580

1-877-FTC-HELP (1-877-382-4357)

TDD: 1-866-653-4261

The FTC generally does not intervene in individual disputes, but the information you provide may
indicate a pattern of violations that the Commission would investigate.

For FHA violations:

Office of Fair Housing and Equal Opportunity

US Department of Housing and Urban

Development (HUD), Room 5204

Washington, DC 20410-2000

1-800-424-8590; TDD: 1-800-543-8294

For details about the Fair Housing Act, contact the Office of Fair Housing and Equal Opportunity.

You have one year to file a complaint with HUD, but you should file as soon as possible. Your
complaint to HUD should include your name and address, the name and address of the person
or company you are complaining about; the address or some other way to identify the housing
involved; a short description of the facts that make you think your rights were violated; and the
dates of the violation you are alleging. HUD will notify you when it receives your complaint. HUD
also usually notifies the alleged violator of your complaint and allows the person to submit an
answer; offers you and the alleged violator the chance to resolve your complaint voluntarily
through a conciliation process; investigates your complaint and determines whether there is
reason to believe the FHA has been violated; and lets you know if it cannot finish an investigation
within 100 days of receiving your complaint.

For violations of the ECOA and the FHA:
Nationally-charted banks (National or N.A. will be part of the name):

Comptroller of the Currency
Consumer Assistance Group
1301 McKinney Street
Houston, TX 77010-9050
1-800-613-6743

State-chartered banks insured by the Federal Deposit Insurance Corporation, but not
members of the Federal Reserve System:

Federal Deposit Insurance Corporation
Consumer Response Center

2345 Grand Boulevard

Suite 100

Kansas City, MO 64108

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days. An acceptable reason might be: “your income was too low” or “you haven’t been
employed long enough.” An unacceptable reason might be “you didn’t meet our
minimum standards.” That’s not specific enough information.

learn the specific reason why you were offered less favorable terms than you applied
for, but only if you reject these terms. For example, if the lender offers you a smaller
mortgage or a higher interest rate, you have the right to know why — as long as you
don't accept the lender’s counter offer.

* get a copy of the property appraisal from the lender. Mortgage applications may be
turned down because of low appraisals. Review the appraisal. Check that it has
accurate information and determine whether the appraiser considered illegal factors,
like the racial composition of the neighborhood.

The lender may have rejected your application because of negative information in your credit
report. If so, the lender has to tell you that, and give you the name, address, and phone number
of the consumer reporting company that provided the information. You can get a free copy of that
report from the consumer reporting company if you ask for it within 60 days. Otherwise, unless
you order your free annual credit report from that particular consumer reporting company, expect
to pay a fee. If your credit report has inaccurate information, the consumer reporting company is
required to investigate items that you dispute. Those companies furnishing inaccurate
information to the consumer reporting company also must reinvestigate items that you dispute. If
you dispute the consumer reporting company’s account even after the reinvestigation, make sure
that your credit report includes your summary of the problem.

If You Suspect Discrimination
Take action if you think you’ve been discriminated against.

Complain to the lender. Sometimes you can persuade the lender to reconsider your
application.

Check with your state Attorney General’s office to see if the creditor violated state laws:
Many states have their own equal credit opportunity laws.

¢ Consider suing the lender in federal district court. If you win, you can recover your
actual damages and be awarded punitive damages if the court finds that the lender's
conduct was willful. You also may recover reasonable lawyers’ fees and court costs. Or
you might consider finding others with the same claim, and get together to file a class
action suit.

« Report any violations to the appropriate government agency. If your mortgage
application is denied, the lender must give you the name and address of the agency to
contact.

A number of federal agencies enforce the ECOA and the FHA. Determining which agency to
contact depends on the kind of financial institution you dealt with.

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1-877-ASK-FDIC (877-275-3342)
Federally-chartered or federally-insured savings and loans:

Office of Thrift Supervision
Consumer Affairs

1700 G Street NW
Washington, DC 20552
1-800-842-6929; TTY: 800-877-8339

Federally-chartered credit unions:

National Credit Union Administration
1775 Duke Street, Suite 4206
Alexandria, VA 22314-3437
1-800-755-1030

State member banks of the Federal Reserve System:

Federal Reserve Consumer Help Center
P.O. Box 1200

Minneapolis, MN 55480
1-888-851-1920; TDD: 877-766-8533

For discrimination complaints against all kinds of creditors:
Department of Justice

Civil Rights Division

Washington, DC 20530

If you can’t figure out which federal agency is responsible for the financial institution you dealt
with, visit www.federalreserveconsumerhelp.gov or call 1-888-851-1920.

January 2009

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<> FEDERAL TRADE COMMISSION
7), CONSUMER INFORMATION

Mortgage Discrimination

Mortgage discrimination is against the law. That’s important to know if you are thinking about
applying for a mortgage to buy, refinance, or make improvements to your home. According to the
Federal Trade Commission (FTC), the nation’s consumer protection agency, consumers who
want to get a mortgage may want to research not only mortgage types and mortgage rates, but
also their rights under federal laws in place to protect them from discrimination in the mortgage
marketplace. Here’s some information to get started.

The Equal Credit Opportunity Act

The Equal Credit Opportunity Act (ECOA) prohibits credit discrimination on the basis of race,
color, religion, national origin, sex, marital status, age, or whether you get public assistance.
Creditors may ask you for most of this information in certain situations, but they may not use it
when deciding whether to give you credit or when setting the terms of your credit. They are never
allowed to ask your religion. Everyone who participates in the decision to grant credit or in setting
the terms of that credit, including real estate brokers who arrange financing, must follow the
provisions of the ECOA.

The Fair Housing Act

The Fair Housing Act (FHA) prohibits discrimination in all aspects of residential real-estate
related transactions, including:

« making loans to buy, build, repair, or improve a dwelling;
¢ selling, brokering, or appraising residential real estate; and
selling or renting a dwelling.

The FHA prohibits discrimination based on race, color, religion, sex, national origin, handicaps,
or family status, which is defined as children under 18 living with a parent or legal guardian,
pregnant women, and people securing custody of children under 18.

Lender Do’s and Don'ts
If you are looking for a mortgage, by law, lenders must:

¢ consider reliable public assistance income the same way as other income.

+ consider reliable income from part-time employment, Social Security, pensions, and
annuities.

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consider reliable alimony, child support, or separate maintenance payments, if you
choose to provide this information. A lender may ask for proof that you receive this
income consistently.

accept someone other than your spouse as a co-signer if one is needed. If you own the
property with your spouse, he or she may be asked to sign documents that permit you
to mortgage the property.

But lenders cannot:

discourage you from applying for a mortgage or reject your application because of your
race, color, religion, national origin, sex, marital status, age, or because you receive
public assistance.

consider your sex, race, or national origin, although you will be asked to disclose this
information voluntarily to help federal agencies enforce anti-discrimination laws. A
creditor may consider your immigration status and whether you have the right to remain
in the country long enough to repay the debt.

impose different terms or conditions on a loan — like a higher interest rate or bigger
down payment — based on your sex, race, or other prohibited factors.

consider the racial composition of the neighborhood where you want to live. This also
applies when the property is being appraised.

ask about your plans for having a family, although they can ask questions about
expenses related to your dependents.

use discriminatory factors when refusing to purchase a loan or when setting different
terms or conditions for the loan purchase.

require a co-signer if you meet the lender’s standards.

Strengthening Your Application

Not everyone who applies for a mortgage will get one. Potential creditors are entitled to use
factors like your income, expenses, debts, and credit history to evaluate your application for a
mortgage. You may want to take some basic steps to strengthen your application to make sure
that it gets full consideration.

First — before you apply for a mortgage — get a copy of your credit report. A credit
report includes information on where you live, how you pay your bills, and whether
you've been sued or arrested, or have filed for bankruptcy. National consumer reporting
companies sell the information in your report to creditors, insurers, employers, and other
businesses that, in turn, use it to evaluate your applications for credit, insurance,
employment, or renting a home.The Fair Credit Reporting Act (FCRA) requires each of
the three nationwide consumer reporting companies — Equifax, Experian, and
TransUnion — to provide you with a free copy of your credit report, at your request,
once every 12 months. To order your report, visit annualcreditreport.com or call 1-877-

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322-8228.

Second, read your report to make sure the information in it is accurate and up to date.
Credit reports sometimes include inaccurate information: for example, accounts that
don’t belong to you or paid accounts that might be reported as unpaid. If you find errors,
dispute them with the consumer reporting company involved and tell the lender about
the dispute.

Third, give the lender any information that supports your application. For example,
stable employment is important to many lenders. Perhaps you've recently changed jobs
but have been employed steadily in the same field for several years. If so, include that
information on your application. If you've had problems paying bills in the past due to a
job layoff or high medical expenses, write a letter to the lender explaining the causes of
your past credit problems. If you ask lenders to consider this information, they must do
so.

Trying For the Best Loan Terms
Consider shopping with several lenders to compare the fees they charge. When comparing
prices, remember to look at all fees charged on your loan, as well as the interest rate.

Some lenders may try to charge some borrowers more than others for the same loan product
offered at the same time. Charges might include higher interest rates, higher lender origination
fees and points, and/or higher broker origination fees and points.

Ask the loan officer or broker you are dealing with if the rate you're being quoted is the lowest
offered that day. The loan officer or broker probably is basing the offer on a list of mortgage rates
issued by the lender. Ask to see the list; it's often called a rate sheet. If the loan officer or broker
refuses and you suspect you aren't being offered the lowest rates available, consider negotiating
for a lower rate or going to another lender or broker.

Remember that negotiating is acceptable. Many of the fees for your loan, like origination,
application, and processing fees, may be negotiable. Ask your loan officer or broker to explain
each of the fees on your loan and whether there’s any flexibility on the amounts.

What If Your Loan Application Is Denied

If your mortgage application is denied, the lender must give you specific reasons — or tell you
that you have the right to ask for the reasons. The law gives you the right to:

+ find out whether your loan is approved within 30 days of submitting your completed
application. The lender must make a reasonable effort to get all the necessary
information, like credit reports and property appraisals. If your application is rejected,
the lender must tell you in writing.

« know specifically why your application was rejected. The lender must tell you the
specific reason for the rejection or your right to learn the reason if you ask within 60

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