Loan officer Sally is taking a loan application from a couple with foreign accents. Is this a violation of ECOA?

The correct response highlights that asking about a borrower's race or national origin in the context provided could constitute a violation of the Equal Credit Opportunity Act (ECOA). ECOA is designed to prevent discrimination in lending practices based on various characteristics, including race, color, religion, national origin, sex, marital status, and age.

In this situation, if Sally were to inquire about the couple's accents or directly ask about their race or national origin, it may lead to discrimination, even if unintentional. The law aims to ensure fair treatment of all applicants regardless of their background, so any questions that could be perceived as targeting an individual's racial or ethnic identity are not appropriate during the lending process.

This ensures that all loan applicants are judged solely on their creditworthiness and ability to repay the loan, rather than personal characteristics that are unrelated to their financial qualifications.