ECOA Flashcards
What is the goal of the ECOA and when was it enacted?
- Enacted in 1974
- To insure that all persons, consumers as well as businesses, are given an equal chance to obtain credit
As of July of 2011, who enforces and has rule making authority over the ECOA?
CFPB
Can public assistance income be used to qualify for a purchase?
YES. There can be no discrimination of such persons
The government must be able to monitor compliance with fair lending laws as required by who?
Home Mortgage Disclosure Act (HMDA)
A copy of appraisal or other written valuation must be provided the earlier of
- promptly upon completion
- three business days prior to consummation for a transaction that is closed-ended.
What must a mortgage broker retain for 25 months after notifying an applicant of action taken on an application or of incompleteness?
- 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
What are the penalties when violating the ECOA?
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.