What aspect of a customer's background can the lender NOT inquire about during the loan application process?

In the context of loan applications, lenders are generally permitted to inquire about various aspects of a customer's background that are relevant to assessing their ability to repay a loan. However, marital status is a protected characteristic under the Equal Credit Opportunity Act (ECOA). This legislation prohibits lenders from discriminating against applicants based on their marital status and does not allow them to delve into whether an applicant is single, married, divorced, or widowed when making lending decisions. The rationale behind this restriction is to promote fair lending practices and ensure that individuals are not treated differently based on their relationship status.

In contrast, employment history, credit history, and income level are all critical factors that lenders use to evaluate the creditworthiness of an applicant. Understanding a borrower's employment status and income level provides insight into their financial stability, while credit history reflects their past borrowing behaviors and repayment reliability. Thus, these aspects are legitimate inquiries for lenders as they seek to assess risk and make informed lending decisions.