Which question on a mortgage application is considered a prohibited basis under ECOA?

The question about how many children an applicant has is considered a prohibited basis under the Equal Credit Opportunity Act (ECOA). This law aims to prevent discrimination in lending based on specific protected characteristics, including race, color, religion, national origin, sex, marital status, and age, as well as reliance on income derived from alimony, child support, or separate maintenance payments.

While questions related to income, marital status, and obligations like alimony or child support are permissible because they pertain directly to the financial assessment of a borrower's ability to repay a loan, asking about the number of children does not serve a direct purpose in evaluating creditworthiness. Instead, it could lead to potential bias or discrimination based on family composition, making it a violation of ECOA principles. The essence of prohibiting such inquiries is to ensure that lending practices remain fair and equitable without allowing personal circumstances unrelated to credit risk to influence lending decisions.