ECOA and Reg B: Definitions - 12 CFR 1002.2 Flashcards
ECOA definitions, Primary fair lending rule, Prohibited bases, scope (what loans are covered and for how long) and types of discrimination
Adverse Action
1) A refusal to grant credit in substantially the amount or on substantially the terms requested in an application, or,
2) Termination of an account that does not affect all or substantially all of a class of the creditor’s accounts, or
3) A refusal to increase the amount of credit available to an applicant who has made an application for an increase
How is the term ‘Applicant’ defined?
Any person who requests or who has received an extension of credit from a creditor, and includes any person who is or may become contractually liable regarding an extension of credit (includes guarantors, sureties, endorsers, and similar parties).
Application
An oral or written request for an extension of credit (definition includes requests for written preapprovals to be issued by the lender)
Completed Application
An application in connection with which a creditor has received all the information that the creditor regularly obtains and considers in evaluating applications for the amount and type of credit requested
Consumer credit
Credit extended to a natural person primarily for personal, family, or household purposes
Business credit
Extensions of credit primarily for business or commercial (including agricultural) purposes
Contractually liable
Expressly obligated to repay all debts arising on an account by reason of an agreement to that effect
Credit transaction
Every aspect of an applicant’s dealings with a creditor regarding an application for credit or an existing extension of credit
Discrimination (against an applicant)
To treat an applicant less favorably than other applicants
Prohibited bases (9 in total)
Race, Color, Religion, National Origin, Sex, Marital Status, Age, Income from public assistance, or the exercising of rights under the Consumer Credit Protection Act or any state law
Dwelling
A residential structure (1-4 units), whether or not that structure is attached to real property
