12 U.S.C. § 1735f–5: Prohibition against…

Summary

Lenders and federal housing programs must not deny a federally related mortgage loan to anyone because of their sex. When a married couple—or either spouse—applies for such a loan, lenders must fairly look at the combined income of both husband and wife when deciding whether to make the loan. A "federally related mortgage loan" is a home loan secured by property meant mainly for one- to four-family occupancy that also meets at least one of these: the lender’s deposits/accounts are federally insured or the lender is federally regulated; the loan is made, insured, guaranteed, or otherwise assisted by HUD or another federal agency; the loan can be bought by FNMA, GNMA, or FHLMC; or the loan is made in whole or part by a "creditor" (see section 1602(f) of title 15) who makes or invests more than $1,000,000 per year in residential real estate loans.

Title 12, §1735f–5

Banks and Banking, Source: USLM XML via OLRC

(a)No federally related mortgage loan, or Federal insurance, guaranty, or other assistance in connection therewith (under this chapter or any other Act), shall be denied to any person on account of sex; and every person engaged in making mortgage loans secured by residential real property shall consider without prejudice the combined income of both husband and wife for the purpose of extending mortgage credit in the form of a federally related mortgage loan to a married couple or either member thereof.

(b)For purposes of subsection (a), the term “federally related mortgage loan” means any loan which—

(1)is secured by residential real property designed principally for the occupancy of from one to four families; and

(2)(A)is made in whole or in part by any lender the deposits or accounts of which are insured by any agency of the Federal Government, or is made in whole or in part by any lender which is itself regulated by any agency of the Federal Government; or

(B)is made in whole or in part, or insured, guaranteed, supplemented, or assisted in any way, by the Secretary of Housing and Urban Development or any other officer or agency of the Federal Government or under or in connection with a housing or urban development program administered by the Secretary of Housing and Urban Development or a housing or related program administered by any other such officer or agency; or

(C)is eligible for purchase by the Federal National Mortgage Association, the Government National Mortgage Association, or the Federal Home Loan Mortgage Corporation, or from any financial institution from which it could be purchased by the Federal Home Loan Mortgage Corporation; or

(D)is made in whole or in part by any “creditor”, as defined in section 1602(f) of title 15, who makes or invests in residential real estate loans aggregating more than $1,000,000 per year.

Notes & Related Subsidiaries

Editorial Notes

References in Text

section 1602(f) of title 15, referred to in subsec. (b)(2)(D), was redesignated section 1602(g) of title 15 by Pub. L. 111–203, title X, § 1100A(1)(A), July 21, 2010, 124 Stat. 2107.

Amendments

1984—Subsec. (a). Pub. L. 98–479 designated first par. as subsec. (a).

§1735f–5 Prohibition Against Discrimination on Account of Sex in Extension of Mortgage Assistance; Consideration of Combined Income of Husband and Wife for Purpose of Extending Mortgage Credit; Definitions