A creditor shall not make any oral or written statement, in advertising or otherwise, to applicants or prospective applicants that would discourage on a prohibited basis a reasonable person from making or pursuing an application.
The Equal Credit Opportunity Act and Regulation B apply to all credit - commercial as well as personal - without regard to the nature or type of the credit or the creditor, except for an entity excluded from coverage of this part (but not the Act) by section 1029 of the Consumer Financial Protection Act of 2010 (12 ...
A creditor shall not make any oral or written statement, in advertising or otherwise, to appli cants or prospective applicants that would discourage, on a prohibited basis, a reasonable person from making or pursuing an application.
The Equal Credit Opportunity Act (ECOA), which is implemented by Regulation B, applies to all creditors. When originally enacted, ECOA gave the Federal Reserve Board responsibility for prescribing the implementing regulation.
ECOA prohibits discrimination in all aspects of a credit transaction and applies to any organization that extends credit—including banks, small loan and finance companies, retail stores, credit card companies, and credit unions. It also applies to anyone involved in the decision to grant credit or set credit terms.
This Act (Title VII of the Consumer Credit Protection Act) prohibits discrimination on the basis of race, color, religion, national origin, sex, marital status, age, receipt of public assistance, or good faith exercise of any rights under the Consumer Credit Protection Act.
Imposing unfair terms or conditions on a loan (such as lower loan amount or higher interest rates) based on personal characteristics protected under the ECOA. Asking detailed personal information regarding marital status, such as whether you are widowed or divorced.
prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age, because an applicant receives income from a public assistance program, or because an applicant has in good faith exercised any right under the Consumer Credit Protection ...
The Equal Credit Opportunity Act (ECOA) prohibits discrimination in any aspect of a credit transaction. It applies to any extension of credit, including extensions of credit to small businesses, corporations, partnerships, and trusts.
Real Estate Settlement Procedures Act (RESPA) Generally, no. RESPA does not apply to business-purpose loans. Further, loans secured by commercial and multifamily properties (5 or more units) generally fall outside the coverage of RESPA.
The Equal Credit Opportunity Act (ECOA) via Regulation B Section 202.2 defines application as follows: “Application means an oral or written request for an extension of credit that is made in accordance with procedures established by a creditor for the type of credit requested.
Yes, the Equal Credit Opportunity Act (ECOA) applies to all forms of credit, including commercial loans.
Section 804(c) of the Fair Housing Act (FHA), codified at 42 USC § 3604(c), prohibits advertisements that “indicate[ ] any preference” on the basis of race, national origin, and other protected categories.
An example that is NOT a prohibited basis for the Equal Credit Opportunity Act is annual income and military status. The Equal Credit Opportunity Act prohibits discrimination in credit transactions on the basis of race and skin color, national origin, sex, age, marital status, religion, and other protected attributes.
Your marital status cannot be used against you when evaluating your credit application. Any questions about your race, ethnicity and gender cannot be used as a reason to approve or deny your credit application. Creditors have to provide equal information to all borrowers throughout the entire transaction.
Approvals & the 30-Day ECOA Rule
A lot of people don't realize it, but Regulation B §1002.9(a)(1) says that once we have enough information to approve a loan, we are required to notify the applicant of that fact within 30 days.
Disparate treatment occurs when a lender treats a credit applicant differently based on one of the prohibited bases under FHA and/or ECOA. It does not require any showing that the treatment was motivated by prejudice or a conscious intention to discriminate against a person beyond the difference in treatment itself.
Types of Lending Discrimination
Overt evidence of disparate treatment; • Comparative evidence of disparate treatment; and • Evidence of disparate impact.
Discrimination on the basis of gender identity
The loan officer told Rosa that she would not receive a loan application until she “went home and changed.” She filled an ECOA lawsuit that was dismissed by the Massachusetts district court but later upheld by a federal appeals court.
Under the Equal Credit Opportunity Act (ECOA), lenders must provide the main reasons for denying credit or taking adverse action against an applicant. This is enforced through Regulation B. Regulation B is intended to prevent applicants from discrimination in any aspect of a credit transaction.
The Equal Credit Opportunity Act (ECOA) and its implementing regulations, referred to as Regulation B, ensure that creditors do not discriminate against any applicant on the basis of race, color, religion, national origin, sex, marital status, or age.
Which of the following is not true concerning ECOA? The answer is it requires the disclosure of the APR on all advertisements which contain an interest rate.