Equal Credit Opportunity Act (ECOA) Flashcards

1
Q

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

A

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

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2
Q

Which protected classes are exclusive to ECOA?

A

Age, marital status and public assistance

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3
Q

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

A

sex, race, color, national origin, religion

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4
Q

What is the purpose of ECOA?

A

To promote the availability of credit to all creditworthy applicants

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5
Q

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

A

credit application; lease/sale of property.

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6
Q

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

A

the borrower have to 90 days to request it

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7
Q

Under ECOA, how long must disclosures be retained?

A

Disclosures must be retained for 25months.

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8
Q

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

A

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

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9
Q

What is the penalty for noncompliance under ECOA?

A

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

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10
Q

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

A

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

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11
Q

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?

A

The lender has 30 days to deliver.

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12
Q

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

A

The borrower can challenge the value stated in the appraisal.

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13
Q

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

A

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

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14
Q

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

A

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

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15
Q

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

A

alimony, child support, separate maintenance payments

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16
Q

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

A

shared unless the borrower wants to use it to determine creditworthiness

17
Q

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

A

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

18
Q

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

A

Yes