What constitutes "fair lending" practices under New Jersey law?

Fair lending practices under New Jersey law are fundamentally about ensuring equity and non-discrimination in the lending process. Treating all borrowers equally and without discrimination is the cornerstone of fair lending. This means that all individuals, regardless of race, color, religion, national origin, sex, marital status, age, or handicap, must have equal access to mortgage loans and must be evaluated based on their creditworthiness and ability to repay rather than on prohibited factors.

This legal framework aims to prevent practices that would favor one group over another or discriminate against individuals based on characteristics unrelated to their financial qualifications. By ensuring that all borrowers are treated equally, lenders foster a fair and competitive market, contributing to the overall integrity of the mortgage lending system.

Other practices mentioned, such as offering higher interest rates to minority applicants or prioritizing urban borrowers over rural borrowers, violate the principles of fair lending as they reflect discriminatory practices. Similarly, refusing loans to applicants with limited credit history could disproportionately impact certain demographics without just cause, which is also contrary to fair lending standards. Ensuring fair treatment aligns with both ethical considerations and legal requirements under New Jersey law.