If a borrower is denied a loan due to being retired and receiving public assistance, what act is the lender violating?

The correct choice is the Equal Credit Opportunity Act (ECOA), which is designed to prevent discrimination against borrowers based on certain protected characteristics. This act prohibits lenders from denying loans based on an applicant's age, race, color, religion, national origin, sex, marital status, or because they receive public assistance.

In this scenario, if a borrower who is retired and receiving public assistance is denied a loan solely based on that retirement status and the public assistance they receive, the lender is in violation of ECOA, as it constitutes discrimination against that individual's financial status and age. The ECOA ensures fair treatment in the lending process so that individuals are evaluated based on their creditworthiness rather than any discriminatory factors.

The other acts mentioned each focus on different aspects of lending. The HUD (Housing and Urban Development) regulations primarily address issues related to housing discrimination and fair housing laws, while RESPA (Real Estate Settlement Procedures Act) focuses on the disclosure of settlement costs and services in real estate transactions. FHA (Fair Housing Act) is geared toward preventing discrimination in housing-related transactions but does not specifically address credit transactions like ECOA does. Hence, ECOA is the most relevant answer here.