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A 78-year-old applicant with strong income and credit applies for a 30-year mortgage. The MLO is tempted to suggest a shorter term 'because of her age.' Under ECOA, how should the MLO handle her application?
Age is a prohibited basis, provided the applicant has capacity to contract (12 CFR 1002.2(z)). A creditor may consider age only in narrow ways, for example in an empirically derived scoring system that does not assign a negative value to elderly applicants, or to favor an applicant aged 62 or older (12 CFR 1002.6(b)(2)). Weighing her age against her, shortening the term or demanding a co-signer because of her age is discrimination. Source: 12 CFR 1002.2(z); 12 CFR 1002.6(b)(2) (as at 11 Oct 2026).
Using life expectancy to justify a shorter term or a co-signer for an older applicant.
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