ECOA

Question 1

What is the goal of the ECOA and when was it enacted?

Answer 1

• Enacted in 1974

- To insure that all persons, consumers as well as businesses, are given an equal chance to obtain credit

Question 2

As of July of 2011, who enforces and has rule making authority over the ECOA?

Answer 2

CFPB

Question 3

Can public assistance income be used to qualify for a purchase?

Answer 3

YES. There can be no discrimination of such persons

Question 4

The government must be able to monitor compliance with fair lending laws as required by who?

Answer 4

Home Mortgage Disclosure Act (HMDA)

Question 5

A copy of appraisal or other written valuation must be provided the earlier of

Answer 5

• promptly upon completion

- three business days prior to consummation for a transaction that is closed-ended.

Question 6

What must a mortgage broker retain for 25 months after notifying an applicant of action taken on an application or of incompleteness?

Answer 6

• The original application or a copy of it
• Information obtained to monitor compliance
• Any other written or recorded information used in evaluating the application and not returned to the applicant at his request
• Any notification of action taken or statement of specific reasons for adverse action
• Any written statement from the applicant alleging a violation of ECOA

Question 7

What are the penalties when violating the ECOA?

Answer 7

A violator is subject to actual damages; reasonable attorneys’ fees and costs of the plaintiff; and punitive damages of up to $10,000 in an individual lawsuit, or the lesser of either $500,000 or 1 percent of the violator’s net worth in a class-action lawsuit.