It is one of the two main pillars of the nation's fair lending laws (the other is the Fair Housing Act). The statute is implemented by the Consumer Financial Protection Bureau's Regulation B.
NCUA continues to have authority to enforce ECOA for federally chartered credit unions under its supervision with $10 billion or less in assets.
Equal Credit Opportunity Act (ECOA)
The Dodd-Frank Act granted rule-making authority under ECOA to the CFPB and, with respect to entities within its jurisdiction, granted authority to the CFPB to supervise for and enforce compliance with ECOA and its implementing regulations.
Board of Governors of the Federal Reserve System. "Regulation U: Credit by Banks or Persons other than Brokers or Dealers for the Purpose of Purchasing or Carrying Margin Stocks."
The Executive Branch is the primary entity through which policies are enacted and enforced. Enforcement of a policy can begin once it is considered “in effect” by being codified in the Code of Federal Regulations.
The Regulations
Promulgated under Section 7 of the Securities Exchange Act of 1934, each regulation governs different covered persons. Reg. T applies to securities dealers, brokers and members of national securities exchanges, while Reg. U covers banks and non-bank lenders that extend credit secured by margin stock.
The Equal Employment Opportunity Commission (EEOC) enforces laws that make discrimination illegal in the workplace. The commission oversees all types of work situations including hiring, firing, promotions, harassment, training, wages, and benefits.
Regulation B prohibits creditors from requesting and collecting specific personal information about an applicant that has no bearing on the applicant's ability or willingness to repay the credit requested and could be used to discriminate against the applicant.
The staff of the Federal Trade Commission has provided the Consumer Financial Protection Bureau (CFPB) an annual summary of its enforcement and related activities on the Equal Credit Opportunity Act (ECOA). The FTC is responsible for ECOA enforcement and education regarding most non-bank financial service providers.
1. Timing of notice - when an application is complete. Once a creditor has obtained all the information it normally considers in making a credit decision, the application is complete and the creditor has 30 days in which to notify the applicant of the credit decision. (See also comment 2(f)-6.)
The FTC's authority covers for-profit entities such as mortgage companies, mortgage brokers, creditors, and debt collectors – but not banks, savings and loan institutions, and federal credit unions.
All lenders are required to comply with Regulation B when extending credit to borrowers under the Equal Credit Opportunity Act (ECOA), which is regulated and enforced by the Consumer Financial Protection Bureau (CFPB). Regulation B covers the actions of a creditor before, during, and after a credit transaction.
For these reasons, the ECOA and Regulation B prohibition against discrimination on the basis of “sex” includes discrimination or discouragement based on sexual orientation and/or gender identity, including but not limited to discrimination based on actual or perceived nonconformity with sex-based or gender-based ...
Agencies get their authority to issue regulations from laws (statutes) enacted by Congress. In some cases, the President may delegate existing Presidential authority to an agency.
As shown in Table 3, Regulation B includes detailed timing requirements for adverse action notices, while the FCRA does not include such requirements. Typically, financial institutions include the disclosures required under both Regulation B and the FCRA in one adverse action notice when both notices are required.
On the one hand, Regulation B generally prohibits creditors from collecting information about race, color, religion, national origin, or sex “to discourage discrimination, based on the premise that if creditors cannot inquire about or note applicants' personal characteristics, such as national origin or race, they are ...
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.
The Equal Employment Opportunity Commission (EEOC) is an independent federal agency that promotes equal opportunity in employment through administrative and judicial enforcement of the federal civil rights laws and through education and technical assistance.
The U.S. Equal Employment Opportunity Commission (EEOC) is responsible for enforcing federal laws that make it illegal to discriminate against a job applicant or an employee because of the person's race, color, religion, sex (including pregnancy, childbirth, or related conditions, gender identity, and sexual ...
In most cases, changes to procedures and policies are required to appease the charging party. If the case is too serious for mediation or the employer declines mediation, then the EEOC may sue the employer. Employer declined EEOC mediation means the case may proceed to litigation.
The examination procedures will use “TILA” interchangeably for Truth-in-Lending Act and Regulation Z, since Regulation Z is the implementing regulation. Unless otherwise specified, all of the regulation references are to Regulation Z ( 12 CFR 1026 ).
Exempted borrower means a member of a na- tional securities exchange or a registered bro- ker or dealer, a substantial portion of whose business consists of transactions with persons other than brokers or dealers, and includes a borrower who— (1) maintains at least 1000 active accounts on an annual basis for persons ...
FINRA sets minimum maintenance requirements. Be sure to remember which organization sets each requirement! The minimum maintenance for long accounts is 25% equity. Meaning, the equity percentage cannot fall below 25% without the investor or broker-dealer moving to remedy the situation.