What information is a mortgage loan originator NOT allowed to ask a borrower who is applying for a home mortgage?

A mortgage loan originator is prohibited from asking about a borrower's public assistance status in order to avoid discriminatory lending practices and to adhere to fair housing laws. The Fair Housing Act and Equal Credit Opportunity Act are designed to ensure that all borrowers are treated fairly, regardless of their source of income, which includes government benefits. This regulation protects individuals who may rely on public assistance from being unfairly targeted or discriminated against in the lending process.

On the contrary, mortgage loan originators are allowed to inquire about the source of income, credit history, and employment status because these factors are vital for assessing a borrower's ability to repay the loan and determining the risk involved in lending. The focus on these areas helps ensure responsible lending practices while still maintaining compliance with federal regulations.