Under the Equal Credit Opportunity Act (ECOA), discrimination based on race is considered what?

Discrimination based on race is classified as illegal and prohibited under the Equal Credit Opportunity Act (ECOA). This federal law was enacted to ensure that all individuals have fair and equal access to credit without facing discrimination based on certain characteristics, including race, color, religion, national origin, sex, marital status, age, or because they receive public assistance.

ECOA aims to promote fairness in loan origination and lending practices, prohibiting creditors from denying loans or treating applicants unfavorably solely due to their race. By upholding these standards, ECOA fosters a more equitable lending environment, thereby supporting consumer rights and encouraging responsible lending.

The other options do not align with the intent and legal provisions of ECOA, as they either suggest that such discrimination could be permissible, conditional, or unregulated, which contradicts the protections established by the act.