ECOA Flashcards

1
Q

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

A
  • Enacted in 1974

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

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2
Q

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

A

CFPB

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3
Q

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

A

YES. There can be no discrimination of such persons

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4
Q

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

A

Home Mortgage Disclosure Act (HMDA)

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5
Q

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

A
  • promptly upon completion

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

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6
Q

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

A
  • 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
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7
Q

What are the penalties when violating the ECOA?

A

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.

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