A creditor's consideration of state property laws that affect creditworthiness (directly or indirectly) does not constitute unlawful discrimination under ECOA.
Which of the following is true regarding a borrower's intent to proceed with a mortgage transaction as required under federal rule? The answer is it may be communicated however the borrower chooses.
Notifications of adverse action are required to be in writing and must include the following contents: Statement of action taken. Name and address of the creditor. Statement of the provisions of section 701(a) of ECOA.
Explanation: The statement that is NOT true about the financial responsibility of a mortgage loan originator is (D) A mortgage loan originator must always have his or her own surety bond in an amount that reflects the dollar value of loans originated in the previous year.
Answer and Explanation:
The responsibilities of the originator include providing permissions for interviews, showing the records to the state regulator on-demand, and holding or destroying records not knowingly. But providing the records to borrowers is not included and hence, is the answer.
Final answer: The false statement about underwriters is that they can only purchase securities from the issuing company for themselves. Underwriters actually buy these securities and resell them to the public or to dealers.
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.
The ECOA defines adverse action as a denial of credit in the amount or terms requested by an applicant, absent a counteroffer, or an account termination or unfavorable alteration to account terms. 8. 812 C.F.R. § 1002.2(c)(1).
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.
RESPA does not apply to extensions of credit to the government, government agencies, or instrumentalities, or in situations where the borrower plans to use property or land primarily for business, commercial, or agricultural purposes.
A Mortgage Servicing Disclosure Statement, which discloses to the borrower whether the lender intends to service the loan or transfer it to another lender. It also provides information about complaint resolution.
The creditor is ultimately responsible for ensuring that the borrower receives the Closing Disclosure. The Closing Disclosure is a document that outlines the final terms and costs of a mortgage loan. It provides important information about the loan, such as the interest rate, monthly payments, and closing costs.
Signs You Have Been Discriminated Against
You hear the lender make negative comments about race, religion, sex, national origin, the disabled or other protected groups. You are treated differently when you go the office than you were on the phone.
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 ...
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.
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.
However, a longer furlough, removal due to a reduction in force (RIF), or demotion due to a RIF is not an “adverse action” and is conducted under the rules set forth in 5 C.F.R. part 351.
'' 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 ...
eCOA can help to ensure a clinical study follows the ALCOA principles of obtaining Attributable, Legible, Contemporaneous, Original and Accurate data.
A statement of action taken by the creditor. Either a statement of the specific reasons for the action taken or a disclosure of the applicant's right to a statement of specific reasons and the name, address, and telephone number of the person or office from which this information can be obtained.
Final answer: The false statement regarding the Equal Credit Opportunity Act is that a person can be denied for a loan if they are too close to retirement age; the act prohibits age discrimination.
These factors help the underwriter assess the risk associated with insuring the individual. Among the options provided, the factor that is NOT considered by an underwriter when determining premium rates is d. race. Race should not be a determining factor in setting insurance premium rates.
While your loan is processing, avoid taking on new debt or making other financial changes like closing credit cards or other accounts. Anything that affects your debt-to-income ratio may impact your mortgage approval.
Final answer: The statement which is not true about the Securities Act of 1933 is that a third-party user needs to prove the auditor's negligence or fraudulence. Contrarily, the onus is on the auditor to prove their accuracy and professional conduct.