Equal Credit Opportunity Act

Question 1

Act: Equal Credit Opportunity Act
Reg:
Oversee:
Enforced:

Answer 1

Reg: B
Oversee: CFPB
Enforced:

Question 2

ECOA covers:

Answer 2

No Discrimination

Question 3

ECOA No Discrimination SMART RNs drink RC Cola

Answer 3

• Sex • Marital status • Age
• Receipt of public assistance
• The good faith exercise of right under CCPA
• Religion • National origin • Race • Color

Question 4

ECOA 3 Types of Lending Discrimination:

Answer 4

Overt Evidence of Discrimination
Evidence of Disparate Treatment
Evidence of Disparate Impact

Question 5

ECOA What is Evidence of Disparate Impact:

Answer 5

when a lender expresses discriminatory preference regardless of whether or not they act on it.

Question 6

ECOA What is Evidence of Disparate Treatment?

Answer 6

Treating or handling credit applicants differently.

Question 7

ECOA What is Evidence of Disparate Impact?

Answer 7

Having a policy/practice which has disproportionate impact on a prohibited basis (example: redlining- different hours of operations or loan products offered to poorer or minority areas).

Question 8

When can a RMLO acquire about Immigration Status?

Answer 8

RMLO may inquire about the applicant’s permanent residence and immigration status in order to determine creditworthiness.

Question 9

ECOA Disclosures:

Answer 9

Notice of Right to Appraisal
Adverse Action Notice
Incomplete Application Notice

Question 10

ECOA What is Notice of Right to Appraisal?

Answer 10

Also must give copy of appraisal w/in 3 General Business Days of closing or 30
days of denial, can only charge for cost of appraisal itself (no extra fees for copying/sending)

Question 11

ECOA What is Adverse Action Notice?

Answer 11

lists loan amount and reason for denial, must list NAT of any credit agency whose report was used to deny loan. Customer has 60 calendar days to request copy of credit report and it must be given within 30 calendar days of request.

Question 12

ECOA What is Incomplete Application Notice?

Answer 12

(10 day letter)- explains what documents must be submitted and deadline
to do so.

Question 13

ECOA Disclosures Record Retention?

Answer 13

Requires RMLO’s to keep Adverse Action Notices & Incomplete Application Notices files for 25 months

Question 14

ECOA Penalties:

Answer 14

Individual- $10k

Class Action- $500k/1% of net worth (whichever is lesser)