Equal Credit Opportunity Act (ECOA)

Question 1

Equal Credit Opportunity Act (ECOA) makes it unlawful for creditors to discriminate against an applicant based on:

Answer 1

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

Question 2

Which protected classes are exclusive to ECOA?

Answer 2

Age, marital status and public assistance

Question 3

Which protected classes are protected by ECOA & Fair Housing Act (FH Act)?

Answer 3

sex, race, color, national origin, religion

Question 4

What is the purpose of ECOA?

Answer 4

To promote the availability of credit to all creditworthy applicants

Question 5

ECOA deals with discrimination when granting ______. Fair Housing deals with discrimination in the ________.

Answer 5

credit application; lease/sale of property.

Question 6

Under ECOA, If an application for credit is denied based on the appraisal (or value) how long does the borrower have to request it?

Answer 6

the borrower have to 90 days to request it

Question 7

Under ECOA, how long must disclosures be retained?

Answer 7

Disclosures must be retained for 25months.

Question 8

How long does a consumer have to file civil action for a believed ECOA violation?

Answer 8

Civil action may be filed for violations for up to 24 months or 2 years if a consumer believes rights have been violated.

Question 9

What is the penalty for noncompliance under ECOA?

Answer 9

Penalties for non-compliance is 10K for ea. Individual action

Question 10

Under ECOA, How long does a creditor have to notify applicants of their lending decision after filing a completed application?

Answer 10

Creditors must notify applicants of their lending decisions within 30 days of filling a complete application.

Question 11

Under ECOA, If an application for credit is denied based on the appraisal (or value) how long does the lender have to deliver a copy after the borrower has requested it?

Answer 11

The lender has 30 days to deliver.

Question 12

Under ECOA, what right does the borrower have if they are denied based on the value or appraisal?

Answer 12

The borrower can challenge the value stated in the appraisal.

Question 13

Under ECOA, if an application for credit is approved, when does the borrower gets a copy of the appraisal?

Answer 13

If an application for credit is approved, the borrower gets a copy of the appraisal 3 business days prior to doc signing

Question 14

Under ECOA, How long does a creditor have to notify applicants of an adverse action after filing a completed application?

Answer 14

Credits must notify applicants of their lending decisions including denial or adverse action notice within 30 days of filling a complete application.

Question 15

Under ECOA, a creditor may not inquire whether income stated in an application comes from which sources:

Answer 15

alimony, child support, separate maintenance payments

Question 16

Under ECOA the creditor must disclose that alimony, child support and separate maintenance payments do not have to be:

Answer 16

shared unless the borrower wants to use it to determine creditworthiness

Question 17

Under ECOA a creditor may request information concerning the spouse or former spouse under which scenarios

Answer 17

spouse will be permitted to use the account, spouse will be contractually liable, relying on the spouses income for repayment, or replying on support payments from spouse/former spouse as a basis for repayment

Question 18

Under ECOA may a creditor inquire about the permanent residency or immigration status of an applicant?

Answer 18

Yes