Equal Credit Opportunity Act (ECOA) Flashcards
Equal Credit Opportunity Act (ECOA) makes it unlawful for creditors to discriminate against an applicant based on:
Sex, Race, Religion, Color, National Origin, Age, Marital Status, Public Assistance
Which protected classes are exclusive to ECOA?
Age, marital status and public assistance
Which protected classes are protected by ECOA & Fair Housing Act (FH Act)?
sex, race, color, national origin, religion
What is the purpose of ECOA?
To promote the availability of credit to all creditworthy applicants
ECOA deals with discrimination when granting ______. Fair Housing deals with discrimination in the ________.
credit application; lease/sale of property.
Under ECOA, If an application for credit is denied based on the appraisal (or value) how long does the borrower have to request it?
the borrower have to 90 days to request it
Under ECOA, how long must disclosures be retained?
Disclosures must be retained for 25months.
How long does a consumer have to file civil action for a believed ECOA violation?
Civil action may be filed for violations for up to 24 months or 2 years if a consumer believes rights have been violated.
What is the penalty for noncompliance under ECOA?
Penalties for non-compliance is 10K for ea. Individual action
Under ECOA, How long does a creditor have to notify applicants of their lending decision after filing a completed application?
Creditors must notify applicants of their lending decisions within 30 days of filling a complete application.
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?
The lender has 30 days to deliver.
Under ECOA, what right does the borrower have if they are denied based on the value or appraisal?
The borrower can challenge the value stated in the appraisal.
Under ECOA, if an application for credit is approved, when does the borrower gets a copy of the appraisal?
If an application for credit is approved, the borrower gets a copy of the appraisal 3 business days prior to doc signing
Under ECOA, How long does a creditor have to notify applicants of an adverse action after filing a completed application?
Credits must notify applicants of their lending decisions including denial or adverse action notice within 30 days of filling a complete application.
Under ECOA, a creditor may not inquire whether income stated in an application comes from which sources:
alimony, child support, separate maintenance payments