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Additional CRCM > Ecoa > Flashcards

Ecoa Flashcards

1
Q

Econ covers

A

All types of credit

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2
Q

ECOA includes the following prohibited bases

A 
Race
Age
Marital Status
Religion
National origin
Color

RAMRNC

Also receipt of public service assistance

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3
Q

ECOA covers what type of credit evaluation methods

A

All judgements and credit scoring

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4
Q

Exceptions to ECOA include

A

Public utilities credit

Incidental credit ( less than 4 installments, not a credit card account)

Government credit

Securities credit

PIGs

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5
Q

True or false. All aspects of credit transaction are covered under ECOA. Like

A

True

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6
Q

ECOA three step process

A

Consumer prices disproportionate adverse effect

Creditor proves manifest relationship between the practice and creditworthiness

Consumer show alternative policy or practice that net the same result without disproportionate adverse effect

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7
Q

Creditors cannot discourage applicants by

A

Making statements to discourage some one from applying

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8
Q

Definition of an application

A

Oral or written request for credit

Information entered into a computer system

An inquiry when creditor evaluates the information and decided to grant or decline the request

Requests for written preapprovals

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9
Q

A completed application is one where

A

Information that it regularly receives to make a credit decision has been sent

If information has not been sent, the creditor must make a good effort to receive it

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10
Q

Disclosures must be in a form that the applicant can keep except disclosures for

A

Monitoring information

Alimony or child support

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11
Q

Can disclosures be made in any language

A

Yes provided English disclosures are available upon request

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12
Q

Can marital status be a basis to grant credit

A

No but it can be used to consider rights and remedies.

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13
Q

True or false

Married and unmarried applicants can be underwritten using different standards

A

False

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14
Q

Should a creditor determine if a person is old enough to enter a contract

A

Yes

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15
Q

A creditor may consider age as it relaxers to another pertinent element of credit worthiness such as time until retirement if what type of underwriting is used

A

Judgements

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16
Q

For age a creditor may age as a predictor indicator if

A

The system is empirically derives and demonstrably and statistically sound

17
Q

Protected income under ECOA means

A

May not consider if income from a public assistance But May consider length of Time the income Will be received

Cannot discount
Part time income
Pensions
Retirement benefits
Alimony
18
Q

T/F. Child bearing assumptions can be used to determine income

A

False

19
Q

T/F

May consider if the applicant has a phone in their name

A

False, but can consider if there is a phone at the residence

20
Q

Can immigration status be considered as part of the credit decision

A

Yes

21
Q

For qualified applicants, the creditor may not require signature of spouse if

A

Applicant qualifies alone

If the applicant does not qualify alone, the can ask for a co-signer or guarantor but still may not require the spouse

22
Q

The times a creditor may request the signature of the spouse are

A

Property in community property state

Applicant relies on property owned by another

23
Q

Are business purpose loans subject to the same spousal signature rules

A

Yes

24
Q

To comply with ECOA spousal rules compliance should include

A

A review of polices

Training to staff

Monitoring and auditing programs

25
Q

For existing open end accounts, unless the applicant is unwilling to pay a creditor may not do the following based on applicants age, retirement, marital status

A

Require reapplication

Change terms of the account

Terminate an open end account

26
Q

Can a creditor use a prohibited basis to trigger a request for updates information

A

No

27
Q

The folk constitute a adverse action

A

Refusal to grant credit on requested terms

Termination of an account

Unfavorable change in terms with an account

Denial of an increase request

A counter offer that is rejected by the applicant

28
Q

The following do not constitute a adverse action

A

Agreed upon change in terms

Forbearance activity

Lender does not offer that product

Credit is prohibited by law

Counter offer is accepted

29
Q

Applicants must be notified within 30 days of

A

Receiving a completed application

30 days after taking adverse action on incomplete application

30 days after taking adverse on an account

90 days after a counter offer is not accepted

30
Q

For multiple applications, notice should be given to

A

The primary applicant

31
Q

Notification content must contain

A

Statement of action

ECOA notice

Name and address of creditor

Name and address of federal agency that administers creditors compliance with ECOA

SCENN

32
Q

For business credit applications, the notice may be give. Orally or in writing at the time

A

The adverse action is taken

However if orally, creditor must inform applicant they can get a copy of it in 30 days

33
Q

For business with gross revenues more than a million the preceding year the bank must

A

Notify the applicant in a reasonable time

Provide written statement within a reasonable time

Provide written request in 60 days if borrower requests

34
Q

Notice of incompleteness must be sent

A

30 days of receipt of applicantion

It should specify the information needed

Designate a reasonable time to provide the information

Let applicant know. If info is not received no further action will be taken

35
Q

Applicant must get a copy of evaluation if loan is a

A

First lien on a dwelling

36
Q

Appraisals must be given within_______ days prior to consummation

A

3 unless borrower waives right and wants it at consummation or account opening

Note waivers must be in writing and received 3 days before consumation

37
Q

If joint applicants, information must be transmitted to the credit bureau agency in a way that

A

Allows access to the information in each name of each spouse

38
Q

Applicants must be retained do

A

25 months from the notication of action taken. The following items should be maintained

Application
Notice of action taken
Any statements from applicant alleging violation of reg b

Additional CRCM (19 decks)

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