[Code of Federal Regulations]

[Title 24, Volume 1]

[Revised as of April 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 24CFR100.125]



[Page 668]

 

                 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.