[Code of Federal Regulations]
[Title 24, Volume 1]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 24CFR100.125]

[Page 654]
 
                 TITLE 24--HOUSING AND URBAN DEVELOPMENT
 
    CHAPTER I--OFFICE OF ASSISTANT SECRETARY FOR EQUAL OPPORTUNITY, 
               DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
 
PART 100_DISCRIMINATORY CONDUCT UNDER THE FAIR HOUSING ACT--Table of Contents
 
Subpart C_Discrimination in Residential Real Estate-Related Transactions
 
Sec. 100.125  Discrimination in the purchasing of loans.

    (a) It shall be unlawful for any person or entity engaged in the 
purchasing of loans or other debts or securities which support the 
purchase, construction, improvement, repair or maintenance of a 
dwelling, or which are secured by residential real estate, to refuse to 
purchase such loans, debts, or securities, or to impose different terms 
or conditions for such purchases, because of race, color, religion, sex, 
handicap, familial status, or national origin.
    (b) Unlawful conduct under this section includes, but is not limited 
to:
    (1) Purchasing loans or other debts or securities which relate to, 
or which are secured by dwellings in certain communities or 
neighborhoods but not in others because of the race, color, religion, 
sex, handicap, familial status, or national origin of persons in such 
neighborhoods or communities.
    (2) Pooling or packaging loans or other debts or securities which 
relate to, or which are secured by, dwellings differently because of 
race, color, religion, sex, handicap, familial status, or national 
origin.
    (3) Imposing or using different terms or conditions on the marketing 
or sale of securities issued on the basis of loans or other debts or 
securities which relate to, or which are secured by, dwellings because 
of race, color, religion, sex, handicap, familial status, or national 
origin.
    (c) This section does not prevent consideration, in the purchasing 
of loans, of factors justified by business necessity, including 
requirements of Federal law, relating to a transaction's financial 
security or to protection against default or reduction of the value of 
the security. Thus, this provision would not preclude considerations 
employed in normal and prudent transactions, provided that no such 
factor may in any way relate to race, color, religion, sex, handicap, 
familial status or national origin.