Fair Lending Flashcards
Joint Policy Statement on Lending Discrimination; Interagency Fair Lending Examination Procedures
1
Q
Which laws are covered under the Fair Lending rules?
A
FHA and ECOA
2
Q
Name the three types of fair lending discrimination.
A
Overt, disparate treatment and disparate impact
3
Q
Define ‘overt discrimination’
A
Occurs when a lender openly discriminates against an individual or class based on a prohibited basis; also includes expression of discriminatory preferences, whether acted upon or not
4
Q
Define ‘disparate treatment’
A
Occurs when a lender treats a credit applicant differently based on a prohibited basis
5
Q
Define ‘disparate impact’
A
Occurs when a policy or practice is applied equally to all applicants, but has an adverse and disproportionate impact on members of a protected class
