USDA SFH Guaranteed Loan Program Technical Handbook HB-1-3555 ¶1.6 — Civil Rights

USDA SFH Guaranteed Loan Program Technical Handbook HB-1-3555 ¶1.6 — Civil Rights

1.6 CIVIL RIGHTS The Agency, participating lenders, and agents of participating lenders, including appraisers, must administer the SFHGLP fairly and in accordance with all equal opportunity and fair housing legislation and applicable Executive Orders. Below is a list of the pertinent Federal laws and Executive Orders, as well as a brief description and highlights. While lenders will be familiar with many of these requirements, they should carefully review applicable legislation and orders, especially if new to Federally- HB-1-3555 (03-09-16) SPECIAL PN 1-5 Revised (06-24-22) PN 563 Guidance documents lack the force and effect of law, unless expressly authorized by statute or incorporated into a contract. USDA may not cite, use, or rely on any guidance that is not available through their guidance portal, except to establish historical facts. conducted programs. Agency staff should refer to RD Instruction 1901-E for guidance on relevant civil rights requirements. A. Major Civil Rights Laws Affecting the SFHGLP x The Equal Credit Opportunity Act (ECOA) prohibits discrimination in the extension of credit on the basis of race, color, religion, national origin, sex, marital status, age, income from public assistance, or because an applicant has in good faith exercised any right under the Consumer Protection Act. An applicant or borrower who believes he or she has been discriminated by Rural Development for any of these reasons may write to the Secretary of Agriculture, Washington, D.C. 20250. x Title VIII of the Civil Rights Act of 1968 (also known as the Fair Housing Act of 1988, as amended) is enforced by the U.S. Department of Housing and Urban Development. The Fair Housing Act prohibits discrimination in the sale, rental or financing of housing on the basis of race, color, religion, sex, national origin, familial status, or disability. x Section 504 of the Rehabilitation Act of 1973 prohibits discrimination by the Federal government on the basis of disability. An applicant or borrower who believes he or she has been discriminated by Rural Development on the basis of disability may write to the Secretary of Agriculture, Washington, D.C. 20250. x Executive Order 11063 as Amended by 12259 prohibits discrimination in housing or residential property financing for any Federally assisted activity against individuals on the basis of race, color, religion, sex, or national origin. B. Nondiscrimination Practices The applicable civil rights laws prohibit the denial of loans, services, and benefits provided under the SFHGLP to any person based upon race, color, national origin, sex, religion, marital status, familial status, age, disability, source of income, or because the applicant has, in good faith, exercised any right under the Consumer Credit Protection Act (15 U.S.C. 1601). This applies to the Agency, participating lenders, and agents of participating lenders, including appraisers. Discrimination in employment practices is also prohibited. The Agency is responsible for providing guidance and oversight to participating lenders and their agents, including appraisers, to ensure procedures are consistently met. Important key areas are listed below. HB-1-3555 (03-09-16) SPECIAL PN 1-6 Revised (06-24-22) PN 563 Guidance documents lack the force and effect of law, unless expressly authorized by statute or incorporated into a contract. USDA may not cite, use, or rely on any guidance that is not available through their guidance portal, except to establish historical facts. x Outreach. Information about the availability of the program and how to apply must be broadly disseminated, and the extent of the information, assistance, and courtesy extended to those who make inquiries must be consistent. x Application procedures. Application procedures must be fair and accessible to all potential applicants. x Determining eligibility. Equal rigor must be used for all applicants when verifying income, conducting credit checks, and allowing applicants to clarify information. x Making exceptions. Standards for offering exceptions must be applied consistently. x Loan terms and subsidies. Opportunities for any subsidies and favorable loan terms must be made available consistently. x Servicing. Loan servicing, including offering benefits and assistance, must be offered in a fair and consistent manner to all borrowers. x Liquidation and property disposition. Liquidation and any subsequent property disposition must be executed in a fair and consistent manner. Property disposition practices, like those outlined for outreach, must ensure that no person has an unfair advantage in acquiring foreclosed property. C. Reasonable Accommodations for Persons with Disabilities Participating lenders and their agents must make reasonable accommodations to permit persons with disabilities to apply for and benefit from Agency programs. Reasonable accommodations may include providing facilities that are physically accessible and effective communication and outreach tools so that all applicants can get good program information, for example, a Telecommunications Device for the Deaf (TDD).

Source: USDA SFH Guaranteed Loan Program Technical Handbook HB-1-3555 ¶1.6 — Civil Rights · source URL · snapshot 0466acd1ea2d17a4