Was ist das Equal Credit Opportunity Act Quizlet?

What is the Equal Credit Opportunity Act quizlet?

Equal Credit Opportunity Act. Makes it unlawful for any creditor to discriminate against any applicant, based on race, color, religion, national origin, sex, marital status, or age; OR that their income is generated from public assistance programs.

What is the purpose of the Equal Credit Opportunity Act?

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’s the purpose of the ECOA quizlet?

What is the purpose of ECOA? to promote the availability of consumer credit to all applicants by prohibiting credit decision based on race, color, religion, national origin, gender, marital status, or age.

What is the motivation for the Equal Credit Opportunity Act quizlet?

To promote the availability of consumer credit to all applicants by prohibiting credit decisions based on race, color, religion, national origin, gender, marital status, age.

What does the federal Equal Credit Opportunity Act 1974 prohibit quizlet?

The Equal Credit Opportunity Act (ECOA) prohibits discrimination in the granting of credit based on race, color, religion, national origin, sex, marital status, age or receipt of public assistance.

What right or responsibility is included in the Equal Credit Opportunity Act?

The Federal Trade Commission (FTC), the nation’s consumer protection agency, enforces the Equal Credit Opportunity Act (ECOA), which prohibits credit discrimination on the basis of race, color, religion, national origin, sex, marital status, age, or because you get public assistance.

When was the Equal Credit Opportunity Act passed by Congress?

Congress originally passed ECOA in October of 1974. When it was enacted, ECOA prohibited lending discrimination based on sex or marital status.

What does the Equal Credit Opportunity Act require what factors may used in the decision to issue credit?

Your Equal Credit Opportunity Rights

When considering your credit application or setting terms for a loan, creditors can only consider relevant financial factors—your credit score, income, and credit history, including your existing debt load.

Which regulation implements the Equal Credit Opportunity Act?

Regulation B

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.

Which of the following violates the Equal Credit Opportunity Act ECOA )? Quizlet?

Redlining is a particular discriminatory practice that violates ECOA.

How is regulation B related to the Equal Credit Opportunity Act quizlet?

Regulation B outlines the rules that lenders must adhere to when obtaining and processing credit information. Lenders are prohibited from discriminating on the basis of age, gender, ethnicity, nationality, or marital status.

Which of the following best describes a lender’s obligation under the Equal Credit Opportunity Act?

Which of the following best describes a lender’s obligation under the Equal Credit Opportunity Act? Pursuant to Regulation B, a creditor must, within 30 days after receipt of a completed application, advise the loan applicant of action taken, whether it is a decision to grant credit or the denial of the application.

What is the Equal Credit Opportunity Act regulation B?

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.

For which buyer would a lender most likely approve a $200000 mortgage?

For which buyer would a lender most likely approve a $200,000 mortgage? A person with a credit score of 760 with a small amount of debt who has had steady employment for many years.

What is regulation Z?

Regulation Z prohibits certain practices relating to payments made to compensate mortgage brokers and other loan originators. The goal of the amendments is to protect consumers in the mortgage market from unfair practices involving compensation paid to loan originators.

What is regulation dd?

Regulation DD is a directive set forth by the Federal Reserve. Regulation DD was enacted to implement the Truth in Savings Act (TISA) that was passed in 1991. This act requires lenders to provide certain uniform information about fees and interest when opening an account for a customer.

What is TILA in real estate?

The Truth in Lending Act (TILA) helps protect consumers from unfair credit practices by requiring creditors and lenders to pre-disclose to borrowers certain terms, limitations, and provisions—such as the APR, duration of the loan, and the total costs—of a credit agreement or loan.

What is an Appendix Q loan?

Appendix Q contains standards for calculating and verifying debt and income for purposes of determining whether a mortgage satisfies the 43 percent DTI limit for General QMs. ¹³. 12 CFR 1026.43(e)(4)(i).

What are the 4 types of qualified mortgages?

There are four types of QMs – General, Temporary, Small Creditor, and Balloon-Payment.

What are Appendix Q requirements?

The Appendix Q standards, which are adapted from income documentation standards used by the Federal Housing Administration, require that lenders verify employment history for a full two years. The guidelines deal with how underwriters include overtime and bonus income, part-time work, commissions and retirement income.

What disqualifies a loan from being a qualified mortgage?

Qualified mortgages can’t have the following: Risky loan features, or those that offer artificially low monthly loan repayments in the early years of the loan term, including interest-only, balloon or negative amortization loans, sometimes referred to as subprime mortgages.

What is the max debt to income ratio for a mortgage?

43%

As a general guideline, 43% is the highest DTI ratio a borrower can have and still get qualified for a mortgage. Ideally, lenders prefer a debt-to-income ratio lower than 36%, with no more than 28% of that debt going towards servicing a mortgage or rent payment. 2 The maximum DTI ratio varies from lender to lender.

What is the benefit of a qualified mortgage?

All lenders must meet a long list of certain requirements that are free of harmful features that could affect a borrower’s ability to pay. The main purpose of a qualified mortgage is to protect borrowers from forms of predatory lending. The standards that the loan must meet are set by the Federal government.

What is a Section 32 loan?

Section 32 loan designation applies to personal-use loans secured by one-to-four unit residential property (or personal property) which is used as the borrower’s principal residence. For instance, a loan secured by a houseboat used as a principal residence may be designated a Section 32 loan.

What is Section 35 Tila?

Section 35 Escrow Account Exemptions

Temporary or bridge loans that have loan terms of 12 months or less, for example, a purchase loan for a new dwelling when the borrower plans to sell his current dwelling within 12 months. Reverse mortgages subject to Section 1026.33 of the TILA, “Requirements for reverse mortgages.”

What are CRA loans?

The Community Reinvestment Act was implemented to encourage banks to provide loans, investment and services in support of affordable housing. The CRA laws are intended to equalize the playing field for borrowers, giving them the opportunity to qualify for home ownership in designated census tracts.