Definitions Flashcards
Negative factor or value
Utilizing a factor, value, or wait that is less favorable to elderly applicants than warranted by the applicants experience, or that is less favorable than factor, value, or weights assigned to people who are non-elderly and or most favored by a credit on the basis of age
Marital status
The state of being unmarried, married or separated, according to applicable state laws. Unmarried refers to persons who are single, divorced, or widowed. These are the only terms that critters are allowed to use when making inquiries related to marital status under a ECOA.
Good faith
Honesty and conducting a transaction.
Elderly
Age 62 or older
Prohibited basis
Race, Color, religion, national origin, sex, marital status, age as long as the loan application is old enough to enter a contract, receipt of income for my public assistance program, exercise of rights under the consumer credit protection act which includes the truth in lending act
Notice of action taken
Within 30 days of receipt of a loner credit application, lenders must notify consumers in writing of action taken.
Acceptable reasons for denial
One. The applicant is not a legal age to enter into a contract. Two. The applicant failed to demonstrate sufficient credit worthiness, based on consideration of permitted factors, such as income and credit history.
3. Yep looking failed to submit information needed to complete the application.
Notice of incomplete application
Within 30 days of receipt of an application that lacks information that the applicant can provide, the credit must provide a notice of action or a notice of incompleteness.
HMDA
Home mortgage disclosure act
Record retention
25 months after notifying an application of action taken or of incompleteness, the creator must retain the following records.
Overt discrimination
Includes discriminatory actions such as a blatant refusal to offer a credit to an individual due to his or her ethnicity or religion.
Disparate treatment
When a creditor treats and loan applicant who is a member of a protected class differently from other loan applicants who are similarly situated but not members of a protected class, The creditor is engaging in disparate treatment.
For example, if a credit or offers a loan with a higher interest rate to a female loan applicant who is income and employment is comparable to that of a mail applicant who received an offer for a loan at a lower interest rate, the violation of a ECOA has occurred.
Disparate impact
When a credit adopts a neutral policy without discriminatory intent, and the policy has a discriminatory impact, this is known as disparate impact, and there is some potential for liability under ECOA.
ECOA
Equal credit opportunity act
Testers
Are pairs of individuals that poses long applicants who are used to evaluate the treatment of members of a protected class.
Consummation
The time that a consumer becomes Contractually obligated on the credit transaction.
Finance charge
The cost of credit as a dollar amount
Annual percentage rate
A measure of the cost of credit, expressed as a yearly rate
TILA
Truth in lending act
CHARM Booklet
Consumer handbook on adjustable rate mortgages
Rescission
A legal remedy that void the contract between two parties, restoring each to the position held prior to the transaction.
RESPA
Real estate settlement procedures act
HOEPA
The home ownership and equity protection act. High cost mortgages
TRID
TILA-RESPA Integrated Disclosure Rule - the loan estimate, That is intended to help consumers compare costs and shop competitively for mortgages.
Loan Estimate
Must be delivered directly to the consumer placed in the mail no more than three business days after the question receives the consumers application and no later than seven business days prior to consummation.
HMDA
Home mortgage disclosure act
Goal is to identify urban areas where the availability of home financing at reasonable terms is listed.
FCRA
Fair credit reporting act
To ensure the accuracy furnace and privacy of consumers personal information that is assembled and used by consumer reporting agency’s
