What does the ECOA prohibit lenders from quizlet?

Asked by: Annabel Okuneva  |  Last update: November 1, 2025
Score: 4.2/5 (46 votes)

ECOA prohibits discrimination by lenders in any part of a credit transaction on the basis of: race, color, religion, national origin, sex, marital status, age (has to be 18), the receipt of income from a public assistance program, or having exercised any rights under Consumer Credit Protection Act.

What does the ECOA prohibit lenders from?

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 ...

What are lenders prohibited from quizlet?

Lenders are prohibited from discriminating on the basis of age, gender, ethnicity, nationality, or marital status.

What is ECOA prohibited list?

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.

What questions are prohibited by ECOA?

We recommend that you avoid asking applicants about personal characteristics that are protected by law, such as race, color, religion, sex, national origin or age.

What Happens If You Never Pay Your Credit Card? (Explained)

43 related questions found

Which activities are prohibited under ECOA?

  • Discriminatory Credit Practices Defined. ECOA prohibits discrimination in any aspect of a credit transaction. ...
  • Applicant Marital Status. ...
  • Applicant Age. ...
  • Income Consideration. ...
  • Redlining. ...
  • Indirect Lending.

Which activities are prohibited under ECOA quizlet?

ECOA prohibits discrimination by lenders in any part of a credit transaction on the basis of: race, color, religion, national origin, sex, marital status, age (has to be 18), the receipt of income from a public assistance program, or having exercised any rights under Consumer Credit Protection Act.

What are some of the prohibited factors covered under ECOA Fhact?

  • race or color.
  • national origin.
  • religion.
  • sex.
  • marital status.
  • age.*
  • applicant's receipt of income from a public assistance program.
  • applicant's exercise, in good faith, of any right under the Consumer Credit Protection Act.

What types of loans does ECOA cover?

ECOA applies to various types of loans including car loans, credit cards, home loans, student loans, and small business loans.

Which of the following is not a prohibited basis under ECOA?

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.

What are lenders prohibited from?

Fair lending prohibits lenders from considering your race, color, national origin, religion, sex, familial status, or disability when applying for residential mortgage loans. Fair lending guarantees the same lending opportunities to everyone.

What does RESPA prohibit a lender from?

RESPA also prohibits a lender from charging excessive amounts for the escrow account. The lender may require a borrower to pay into the escrow account no more than 1/12 of the total of all disbursements payable during the year, plus an amount necessary to pay for any shortage in the account.

Which of these questions would a lender be prohibited by the ECOA from asking a borrower?

However, a creditor may ask about costs related to children and dependents. Likewise, creditors also are barred from factoring certain considerations into their decisions. Your race, color, religion, national origin, sex, marital status or whether you receive public assistance.

Which of the following does ECOA apply to?

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.

Does ECOA apply to all creditors?

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.

Does ECOA prohibit discrimination based on income?

Income: A creditor cannot exclude an applicant's income from consideration because of a prohibited basis or because the income is derived from part-time employment, annuity, pension, or another retirement benefit. A creditor may take into account the amount and probable continuance of an applicant's income.

What does ECOA make it unlawful for any lender to do?

'' Moreover, the statute makes it unlawful for ''any creditor to discriminate against any applicant with respect to any aspect of a credit transaction (1) on the basis of race, color, religion, national origin, sex or marital status, or age (provided the applicant has the capacity to con tract); (2) because all or part ...

What is the ECOA coverage?

The purpose of ECOA is to promote the availability of credit to all creditworthy applicants without regard to race, color, religion, national origin, sex, marital status, or age (provided the applicant has the capacity to contract); because all or part of the applicant's income derives from any public assistance ...

Does ECOA cover commercial loans?

Yes, the Equal Credit Opportunity Act (ECOA) applies to all forms of credit, including commercial loans.

Which of the following prohibits discrimination by lenders?

The Equal Credit Opportunity Act (ECOA) prohibits discrimination in any aspect of a credit transaction.

What are the prohibited bases for FHA loans?

FHAct makes it unlawful for lenders to discriminate against any person in making available a residential real estate-related transaction or to discourage an applicant from submitting a loan application based on race, color, national origin, religion, sex, familial status, or handicap.

What questions should you avoid on the ECOA?

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.

Which of the following is a prohibited basis under ECOA?

Answer: There are nine prohibited factors under the ECOA. Most people are familiar with seven of them: gender, race, color, religion, national origin, marital status and age.

Which of the following is not true concerning ECOA?

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.

What are the three main fair lending laws and regulations?

Fair Lending Laws/Regulations
  • Equal Credit Opportunity Act (ECOA) This law affects every phase of the lending process and prohibits discrimination on the basis of: ...
  • Fair Housing Act (FHA) ...
  • Americans With Disabilities Act (ADA) ...
  • Civil Rights Act of 1866. ...
  • Home Mortgage Disclosure Act (HMDA)