Why is it considered discriminatory to deny a loan based on disability under the Fair Housing Act?

The Fair Housing Act explicitly protects individuals from discrimination based on various characteristics, including physical or mental disabilities. Denying a loan to someone because they have a disability directly contradicts this legal framework, which is designed to ensure equal opportunity in housing and related financial services.

This protection is based on the principle that all individuals, regardless of their disabilities, should have the same access to housing and the financing necessary to secure it. Discriminatory practices undermine this principle and create barriers to equal treatment, effectively limiting opportunities for individuals with disabilities to obtain housing and achieve financial independence. Hence, it is crucial that loan originators understand and comply with these legal protections to promote equality and fairness in lending practices.