I see Equal Housing Lender on websites ex p2p finance websites that do not offer mortgages, (to clarify nor are they banks) and are often not technically lenders rather than facilitators of loan processing. Please read the prospectus of many of the p2p lenders. Ex Prosper and Lending club are marketplaces they do not originate the loan rather they are utilized in loan origination.

I googled Equal Housing Lender but it indicates that the (Bank) lender must follow fair and non-discriminatory practices but is there any assumption about what types of loans it has? Do all companies that lend money need to be Equal Housing Lenders?

Would a p2p marketplace company such as Lending Club or Prosper be required to display Equal Housing Lender for lets say a personal loan have implications? Please note that in both cases they use a bank WebBank as the lender. I clearly understand that WebBank must follow Equal Housing Lender / Equality laws as a Bank using federal funds.

Additionally could someone define the labeling's significance if any? Is there historical significant to why it is "Housing" lender rather than just Equal Lender?

  • Complying with anti-discrimination laws.
    – keshlam
    Jan 6, 2016 at 1:19
  • @keshlam but having no significant to housing? Why the housing then?
    – Tai
    Jan 6, 2016 at 1:19
  • Because there used to be a specific problem with banks not making mortgage loans if your skin was the wrong color.
    – keshlam
    Jan 6, 2016 at 1:24
  • Lending Club insures its balances (not your loans, but cash in your account) with the FDIC, apparently by maintaining it in special accounts with Wells Fargo. There's a possibility they could get into trouble if they didn't display the Equal Housing Lender badge, so why not show it and avoid the risk? Jan 6, 2016 at 8:31
  • @ZachLipton thank you that was what I was curious about!
    – Tai
    Jan 6, 2016 at 19:24

2 Answers 2


At the top result of the Google search, on the Google results page it's sumarized as applicable to every lender participating in FDIC:

The terms equal housing lender and equal opportunity lender are synonymous and refer to all banks insured by the Federal Deposit Insurance Corporation in the United States. Such banks are prohibited from discriminating on the basis of race, color, religion, national origin, sex, handicap, or familial status.

  • Source link? Attribution? Jan 6, 2016 at 4:12
  • Yes, I read this. There is additional complexity. For example p2p lenders are not actually banks nor are they the lending party rather they are loan facilitators, I know the name is confusing. Your quote involves banks, perhaps I should revise my question.
    – Tai
    Jan 6, 2016 at 6:18
  • additionally the question is related to peer to peer lending specifically.
    – Tai
    Jan 6, 2016 at 6:23

If a bank is evaluating a persons qualifications to qualify for a loan they have to follow the FDIC and HUD guidelines for equal opportunity credit. If they offer mortgages they will use the phrase equal housing.

from the lending club website (fine print area):

2 This depiction is a summary of the processes for obtaining a loan or making an investment. Loans are issued by WebBank, an FDIC insured Utah-chartered industrial bank located in Salt Lake City, Utah, Equal Housing Lender. Investors do not invest directly in loans. Investors purchase Member Dependent Notes from Lending Club. Loans are not issued to borrowers in IA and ID. Individual borrowers must be a US citizen or permanent resident and at least 18 years old. Valid bank account and social security number/FEIN are required. All loans are subject to credit review and approval. Your actual rate depends upon credit score, loan amount, loan term, credit usage and history. LendingClub notes are issued pursuant to a Prospectus on file with the SEC. You should review the risks and uncertainties described in the Prospectus related to your possible investment in the notes. Currently only residents of the following states may invest in Lending Club notes: AR, AZ, CA, CO, CT, DE, FL, GA, HI, IA, ID, IL, IN, KS, KY, LA, MA, ME, MN, MO, MS, MT, NE, NH, NV, NY, OK, RI, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV, or WY. Our mailing address is: Lending Club, 71 Stevenson, Suite 300, San Francisco, CA 94105.

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