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ACES > ECOA > Flashcards

ECOA Flashcards

1
Q

What is ECOA

A

Equal Credit Opportunity Act

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2
Q

What regulation is ECOA?

A

B

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3
Q

Who regulates ECOA?

A

FRB

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4
Q

Who enforces ECOA?

A

CFPB along with FTC

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5
Q

When was ECOA enacted?

A

1974

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6
Q

What is the purpose of ECOA?

A
  1. To eliminate discriminatory treatment of credit applicants and to promote the availability of credit to all credit worthy applicants
  2. Applies to the entire CREDIT industry as a whole, not just mortgages
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7
Q

What disclosures are under ECOA?

A
  1. Notice of Right to Receive Appraisal Report- due within 3 business of application
  2. Notice of Action Taken- due within 30 calendar days of application
  3. Notice of Adverse Action- due within 30 calendar days of the action
  4. Notice of Incomplete Application- due within 30 calendar days of application
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8
Q

What are the appraisal report guidelines under ECOA?

A

Provided to the borrower promptly upon completion (should) or 3 business days prior to close (must)
If the loan is not going to close- due within 30 days of the cancellation or denial

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9
Q

Under ECOA, if the loan is declined, the customer can request an additional appraisal report….

A

90 days from day of denial

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10
Q

What are the protected characteristics under ECOA?

A 
M.arital Status
R.ace
B.earing of children
A.ge
R.eligion
N.ation of Origin
S.ex
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11
Q

What types of income can lenders NOT refuse?

A

Alimony or Child Support
Pension, Annuity, or Retirement income
Public Assistance

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12
Q

Under ECOA, what are the labels of marital status?

A

Married, Unmarried, and Separated

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13
Q

Under ECOA, lenders may not…

A
  1. Assume a woman of child bearing age will stop working
  2. Refuse credit to those who have participated in credit counseling
  3. Engage in redlining- community based discrimination
  4. Discourage an applicant from applying
  5. Refuse to lend to an applicant because they filed an ECOA complaint in the past
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14
Q

What is disparate treatment?

A

Not treating all applicants the same

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15
Q

Lenders must _____ for ______

A

self-test, compliance

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16
Q

Corrective action is ________

A

not admission of guilt

17
Q

When can civil actions be brought up under ECOA?

A

2 years

18
Q

What are the penalties under ECOA?

A

Civil $5,000/day if there is a pattern $25,000/day
Punitive: 1. Individual actions up to $10,000
2. Class action lawsuits up to $500,000 or 1% of the creditors net worth whichever is less

19
Q

What is the document retention under ECOA?

A

25 months (24 months plus 1 month) due to ability to file 2 years of a violation

ACES (22 decks)

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