Federal law recognizes three types of lending discrimination. According to the Federal Deposit Insurance Corp. (FDIC), they include: Overt discrimination—when a lender blatantly discriminates based on a prohibited basis Disparate treatment—when a lender treats applicants differently based on one of the prohibited factors Disparate impact—when a lender applies a practice uniformly to all applicants, but the practice has a discriminatory effect on a prohibited basis and is not justified by business necessity