Fair Lending and Reg B Flashcards
Review the nondiscrimination in real estate advertising requirements.
What are the disclosure requirements for various types of advertisements:
Print
Oral/radio
Video
During which part of the lending process must CUs treat all applicants in the same manner?
the entire process
What are the (3) different types of lending discrimination?
In what types of situations could each occur?
Overt discrimination - redlining
Disparate Treatment - assistance and information can change between members
Evidence of Disparate Impact - neutral policy results in members of a protected class
What is a ‘prohibited basis’?
Do protected classes differ under different laws?
Race or color
Religion
National origin
Sex
Age
Marital status
Familial status
Handicap
Receipt of public assistance income
and the prior assertion by an applicant of any right under the Consumer Credit Protection Act
What types of actions are considered adverse actions under Reg B?
What actions are not adverse?
Refusal to grant credit/decline
Counteroffer if the member does not accept the counteroffer
Termination of a credit account
Unfavorable change in account terms
Refusal to refinance or extend a member’s loan
Refusal to increase the amount of credit available
Not adverse:
Acceptance of a counteroffer
Change in terms expressly agreed to by a member
Any action taken on an account related to a member’s inactivity
Refusal or failure to authorize a transaction at a POS
A refusal to extend credit because applicable law prohibits the CU from extending the credit requesting
Refusal to extend credit bc the CU does not offer the type of credit or credit plan requested
What are a CUs options for responding to an incomplete application?
Respond within 30 days with a Notice of Incompleteness
What is the timeframe for sending an adverse action notice?
If the CU makes a counter offer, what options does it have for providing an adverse action letter?
30 days from decision
AA is not required unless the counter offer isn’t accepted
How do the adverse action and risk-based pricing rules interact with the Fair Credit Reporting Act’s requirements?
they can be combined
