In relation to ECOA, which basis of discrimination is prohibited?

The basis of discrimination that is prohibited under the Equal Credit Opportunity Act (ECOA) includes age. ECOA ensures that credit and lending decisions are made without discrimination based on age, among other factors. This means that lenders cannot refuse to extend credit or provide different terms based on an applicant's age, which promotes fairness and equal treatment in lending practices.

In the context of the ECOA, age discrimination can be particularly concerning because it may disproportionately affect older individuals who may require credit for various reasons, such as retirement or healthcare. By prohibiting discrimination based on age, the ECOA helps to ensure that all individuals, regardless of how old they are, have access to the credit they need.

The other options—employment status, creditworthiness, and housing location—are not specific bases of discrimination prohibited under ECOA. While lenders can consider creditworthiness as a legitimate criterion for lending decisions, doing so should not involve discrimination based on prohibited bases like age. Housing location may also relate to fair housing laws but is not specifically linked to ECOA's prohibition of discrimination in credit transactions. Employment status, while an important factor for lenders in assessing an applicant's ability to repay a loan, does not fall under the same definitions of prohibited discrimination as outlined by ECO