Which regulation prohibits discrimination based on race, color, religion, sex, marital status, or national origin in credit transactions?

The correct answer is Regulation B, which implements the Equal Credit Opportunity Act (ECOA). This regulation specifically prohibits discrimination in any aspect of a credit transaction based on race, color, religion, sex, marital status, or national origin. It promotes fair and equal access to credit for all applicants, ensuring that lending decisions are made based on objective criteria rather than biased factors.

Regulation C, on the other hand, primarily deals with the Home Mortgage Disclosure Act (HMDA) and focuses on data collection and reporting related to mortgage lending practices, particularly regarding whether institutions are serving the housing needs of their communities. Regulation Z is primarily concerned with the Truth in Lending Act (TILA), which requires clear disclosure of credit terms to protect consumers from deceptive lending practices. Regulation G relates to the registered entities under the SAFE Act and does not address discrimination in credit transactions.

Understanding Regulation B is crucial for ensuring compliance with fair lending laws and protecting consumer rights in financial transactions.