ECOA (Equal Credit Opportunity Act) - Regulation B

Question 1

What does ECOA stand for?

Answer 1

Equal Credit Opportunity Act

Question 2

What regulation is ECOA?

Answer 2

Regulation B

*Remember “B” equal

Question 3

What does ECOA / Regulation B require from creditors?

Answer 3

To not discriminate when granting credit. (*They must “Be equal”)

Question 4

ECOA primary deals with what?

Answer 4

Credit

Question 5

What law prohibits discrimination by lenders in any part of a credit transaction on the basis of: race, color, religion, national origin, sex, marital status, age, the receipt of income from a public assistance program or having exercised any rights under the Consumer Credit Protection Act?

Answer 5

ECOA / Regulation B

Question 6

ECOA states that the borrower is entitled to a copy of the appraisal report at least how many business days before closing (loan consummation)?

Answer 6

at least 3 business days

Question 7

What law allows married spouses to maintain separate credit files / credit reports if requested?

Answer 7

ECOA / Regulation B

Question 8

What is another name for credit file?

Answer 8

Credit report

Question 9

What law allows credit applicants to file discrimination complaints or bring about a civil lawsuit for alleged discrimination?

Answer 9

ECOA / Regulation B

Question 10

What law prohibits a creditor from inquiring about a consumer’s marital status or intentions related to having children?

Answer 10

ECOA / Regulation B

Question 11

What law prohibits creditors from making any oral or written statement, in advertising or otherwise, to applicants or prospective applicants that would discourage them from making or pursuing an application on a prohibited basis?

Answer 11

ECOA / Regulation B

Question 12

What are the 8 protected classes under ECOA / Regulation B?

Answer 12

Sex, Race, Religion, Color, National Origin, Age, Marital Status and Public Assistance.

Question 13

The following are the 8 protected classes under what regulation/law?
Sex, Race, Religion, Color, National Origin, Age, Marital Status and Public Assistance.

Answer 13

These are the 8 protected classes under ECOA / Regulation B

Question 14

A creditor refusing to consider or discounting income from alimony, child support or maintenance if the borrower chooses to disclose it, is prohibited by what law?

Answer 14

ECOA / Regulation B

Question 15

ECOA / Regulation B, prohibits creditors from refusing to consider or discount income from what three sources?

Answer 15

Alimony, child support or maintenance (spousal support).

Question 16

A loan originator should never ask a borrower how many children they have and/or plan to have. What is the proper way of asking for this information?

Answer 16

How many dependents do you have?

Question 17

According to ECOA / Regulation B, a creditor may not ask an applicant if any income stated on the application is derived from what two sources, UNLESS the applicant wishes that income to be considered for determining their eligibility for the loan?

Answer 17

Alimony or Child Support.

Question 18

ECOA / Regulation B dictates the collection of demographic information in order to monitor the lenders’ compliance with the law. At the bottom of the 1003 loan application, the interviewer MUST specify what three things of the applicant when the loan application is taken face-to-face?

Answer 18

Race, Ethnicity and Sex.

Question 19

What law requires credit bureaus to keep separate files / reports on married spouses IF it is requested?

Answer 19

ECOA / Regulation B

Question 20

What is another name for an adverse action noticed?

Answer 20

Denial letter

Question 21

A denial letter is also know as what?

Answer 21

An adverse action notice

Question 22

Per ECOA / Regulation B, notification of adverse action (denial letter) MUST be in what format? Hint: A telephone call is not sufficient.

Answer 22

It must be in writing.