Ecoa

Question 1

Econ covers

Answer 1

All types of credit

Question 2

ECOA includes the following prohibited bases

Answer 2

Race
Age
Marital Status
Religion
National origin
Color

RAMRNC

Also receipt of public service assistance

Question 3

ECOA covers what type of credit evaluation methods

Answer 3

All judgements and credit scoring

Question 4

Exceptions to ECOA include

Answer 4

Public utilities credit

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

Government credit

Securities credit

PIGs

Question 5

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

Answer 5

True

Question 6

ECOA three step process

Answer 6

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

Question 7

Creditors cannot discourage applicants by

Answer 7

Making statements to discourage some one from applying

Question 8

Definition of an application

Answer 8

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

Question 9

A completed application is one where

Answer 9

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

Question 10

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

Answer 10

Monitoring information

Alimony or child support

Question 11

Can disclosures be made in any language

Answer 11

Yes provided English disclosures are available upon request

Question 12

Can marital status be a basis to grant credit

Answer 12

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

Question 13

True or false

Married and unmarried applicants can be underwritten using different standards

Answer 13

False

Question 14

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

Answer 14

Yes

Question 15

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

Answer 15

Judgements

Question 16

For age a creditor may age as a predictor indicator if

Answer 16

The system is empirically derives and demonstrably and statistically sound

Question 17

Protected income under ECOA means

Answer 17

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

Question 18

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

Answer 18

False

Question 19

T/F

May consider if the applicant has a phone in their name

Answer 19

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

Question 20

Can immigration status be considered as part of the credit decision

Answer 20

Yes

Question 21

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

Answer 21

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

Question 22

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

Answer 22

Property in community property state

Applicant relies on property owned by another

Question 23

Are business purpose loans subject to the same spousal signature rules

Answer 23

Yes

Question 24

To comply with ECOA spousal rules compliance should include

Answer 24

A review of polices

Training to staff

Monitoring and auditing programs

Question 25

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

Answer 25

Require reapplication Change terms of the account Terminate an open end account

Question 26

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

Answer 26

No

Question 27

The folk constitute a adverse action

Answer 27

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

Question 28

The following do not constitute a adverse action

Answer 28

Agreed upon change in terms Forbearance activity Lender does not offer that product Credit is prohibited by law Counter offer is accepted

Question 29

Applicants must be notified within 30 days of

Answer 29

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

Question 30

For multiple applications, notice should be given to

Answer 30

The primary applicant

Question 31

Notification content must contain

Answer 31

Statement of action ECOA notice Name and address of creditor Name and address of federal agency that administers creditors compliance with ECOA SCENN

Question 32

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

Answer 32

The adverse action is taken However if orally, creditor must inform applicant they can get a copy of it in 30 days

Question 33

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

Answer 33

Notify the applicant in a reasonable time Provide written statement within a reasonable time Provide written request in 60 days if borrower requests

Question 34

Notice of incompleteness must be sent

Answer 34

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

Question 35

Applicant must get a copy of evaluation if loan is a

Answer 35

First lien on a dwelling

Question 36

Appraisals must be given within_______ days prior to consummation

Answer 36

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

Question 37

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

Answer 37

Allows access to the information in each name of each spouse

Question 38

Applicants must be retained do

Answer 38

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