What is the purpose of Regulation B?

Regulation B is part of the Equal Credit Opportunity Act (ECOA) and is primarily focused on preventing discrimination in credit transactions. Its main purpose is to ensure that all consumers have equal access to credit, regardless of personal characteristics such as race, color, religion, national origin, sex, marital status, age, or income. By prohibiting discriminatory treatment of credit applicants, Regulation B aims to create a level playing field in lending practices, ensuring that decisions are made based on creditworthiness and the ability to repay rather than on discriminatory factors.

In the context of the other options, while they address important aspects of mortgage-related laws, they do not capture the core objective of Regulation B. For example, requiring disclosure of settlement costs is covered under the Real Estate Settlement Procedures Act (RESPA), regulating referral fees aligns with various state laws and the Truth in Lending Act, and prohibiting misleading advertisements is part of laws aimed at protecting consumers from false advertising practices. None of these focuses on the specific anti-discrimination provisions that are central to Regulation B.