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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-
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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.
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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).