Under the ECOA, it is illegal for lenders to discriminate on the basis of:

• A. Color of the House
• B. Marital Status
• C. Number of Bedrooms
• D. Distance to Downtown

Answer: (B)

Marital status is a protected characteristic in lending, so under the Equal Credit Opportunity Act, it is illegal for lenders to treat applicants differently or deny credit simply because of whether they are married, single, divorced, or other marital status. The other options describe characteristics of the property or its location, not the borrower's personal attributes, and therefore are not grounds for illegal discrimination in credit decisions. In practice, lenders should evaluate creditworthiness based on factors like income, credit history, and ability to repay, not on the applicant’s marital status.