Equal Credit Opportunity Act Flashcards
What regulation does this act have?
Regulation B
What is the purpose of this law?
Keep lenders and brokers from discriminatory practices and all applicants have equal rights of opportunity when being considered for a loan
When is it okay to ask someone their religion?
a.) Never
b.) Never, unless you are a non profit
c.) Always, unless it is used to deny credit
d.) Always
A.
What does the ECOA prohibit discrimination upon?
Race, sex, color, religion, national origin, marital status, age or whether you get public assistance
Can you turn down an applicant because they are on public assistance?
No but they still have to qualify
Can you ask a women of her childbearing capabilities or whether or not she will have more?
No
Client is doing a home equity to build a nursery. Can you as if she is planning on going back to
work after she has baby?
No
At application the MLO notices the borrower is pregnant; they should:
a.) Turn the applicant down
b.) Ignore that the applicant is pregnant
c.) Ask if the applicant will stop working after having the child
d.) Refuse to take the application
B
What are lenders and brokers prohibited from doing based on the protected class?
discouraging a borrower from applying
> refusing a loan to someone who qualifies
> lending with different terms than someone with the same credit/income criteria
> closing an account
What is a notice adverse action and when should it be given to a borrower?
A statement of reasons for a denial, and given when they are denied a loan
How long does a lender have to give a decision?
30 days
In a borrower/ co borrower application, how many of them need to be sent an adverse action letter?
Only 1 person
What is the ECOA Valuations rule
Lenders have 3 days from application to notify borrower of their right to a copy of appraisal and must provide 3 days prior to close
What is the record keeping time for ECOA
25 months
What are the individual violations for ECOA
10k
