Ethics (FHA, ECOA-B, HMDA, CRIA77) Flashcards
What does the Fair Housing Act do?
It prohibits discrimination when buying/selling/renting residential properties.
According to the Fair Housing Act, how long does a borrower have to bring forth complaints?
one year
Where does a borrower bring forth discrimination complaints?
HUD
What does HUD stand for?
Department of Housing and Urban Development
What does ECOA stand for?
Equal Credit Opportunity Act
What regulation is the Equal Credit Opportunity Act?
Regulation B
What is the goal of ECOA?
To prohibit discrimination when lending money/extending credit
ECOA states that all sources of income must be treated ________.
equally
While making an income decision in accordance with Regulation B, what 3 things may you base decision on?
- stability
- durability
- adequacy of income (NOT SOURCE!)
Under ECOA, can one inquire as to source of downpayment?
YES!
Under ECOA, can one inquire as to continuance on disability?
NO!
The borrower always has the right to ________, including appraisals.
challenge
Where is the “right to challenge” disclosed?
On the AAN
What does AAN stand for?
Adverse Action Notice
Within how many days must a creditor “decision” a file?
30 days
When does the 30 day “clock” start to send disclosure to borrowers?
at application
What can be sent to the borrower 30 days after application as “disclosure”?
NOAT
What does NOAT stand for?
Notice of Action Taken
What are the only acceptable ways of referring to a person’s marital status?
Married
Unmarried
Separated
Can an MLO ever discourage someone from applying for credit?
NO! Never.
What are the Equal Housing Logos outlined in Regulation B?
- Lender: “Equal Housing Lender”
- MLO: “Equal Housing Opportunity
What does HMDA stand for?
Home Mortgage Disclosure Act
What is Section X of 1003 (URLA)?
Government Monitoring Information
What does the Home Mortgage Disclosure Act do?
HMDA evaluates lending practices to identify discriminatory patterns.
How frequently AND WHEN is the LAR reported?
Reported annually by March 1st
What does LAR stand for?
Loan Application Registar
What three primary categories are evaluated under HMDA?
- race
- ethnicity
- gender
If borrower chooses NOT to provide info for a SECONDARY category, what should the lender do?
Leave it blank.
According to HMDA, what is the definition of DWELLING?
- In addition to 1-4 SFD, includes 5+ unit properties, apartments, condos
- Still does NOT include commercial, agricultural, hotel, houseboat, RV
What did the Community Reinvestment Act of 1977 do?
Make banks eligible to receive bonus payments for not redlining.
If borrower chooses NOT to provide info for a PRIMARY category, what should the lender do?
- in person: best estimate based on visual and last name
- on phone/internet: leave blank
