What does ECOA allow an MLO to inquire about regarding a borrower?

The Equal Credit Opportunity Act (ECOA) allows a Mortgage Loan Originator (MLO) to inquire about a borrower’s citizenship status in order to ensure compliance with various regulatory requirements. Understanding citizenship is crucial because it can impact the borrower's eligibility for certain types of loans, especially federal financing programs. ECOA aims to prevent discrimination in lending based on characteristics such as race, color, religion, national origin, sex, marital status, or age. However, it does permit inquiries related to citizenship, as it relates directly to the eligibility of the borrower for credit products.

While income history, employment status, and credit score are also important factors that MLOs consider when evaluating a borrower's loan application, ECOA does not specifically address or restrict inquiries about these aspects in the same way it does for citizenship status. Instead, these factors are standard components of the lending process aimed at assessing the ability of a borrower to repay the loan.