10 questions, graded as you go, with the reason for every answer. No sign-up.
What this covers
ECOA
ECOA appraisal rule
HMDA
FCRA
FACTA
GLBA
BSA/AML
Fair Housing Act
Homeowners Protection Act
Dodd-Frank Act
Telemarketing
E-SIGN Act
Sample questions
Which of the following is a prohibited basis for a credit decision under ECOA?
The applicant receives public assistance income
The applicant has a short credit history
The applicant has changed jobs recently
The applicant has a high level of debt
Show the answer
A. The applicant receives public assistance income
ECOA bars discrimination based on race, color, religion, national origin, sex, marital status, age, receipt of public assistance and the exercise of consumer credit rights. Credit history, job stability and debt load are legitimate underwriting factors.
Reference: Regulation B (12 CFR Part 1002), 1002.2(z) and 1002.4
After receiving a completed application, a creditor must notify the applicant of the action taken within how long?
10 days
45 days
30 days
60 days
Show the answer
C. 30 days
Regulation B gives the creditor 30 days from receipt of a completed application to give notice of approval, counteroffer or adverse action. Sixty days is the window an applicant has to ask for the reasons when the notice does not state them.
Reference: Regulation B (12 CFR Part 1002), 1002.9(a)
For a first-lien loan on a dwelling, when must the creditor give the applicant a copy of the appraisal?
Promptly on completion, or 3 business days before consummation, whichever is earlier
Only when the applicant asks for a copy in writing before the closing date
At the closing table, together with the note and the security instrument
Within 30 days after closing, together with the first payment statement
Show the answer
A. Promptly on completion, or 3 business days before consummation, whichever is earlier
The creditor must send copies of all appraisals and written valuations promptly when completed or three business days before consummation, whichever comes first, and must tell the applicant of this right within three business days of application. The applicant no longer has to request a copy.
Reference: Regulation B (12 CFR Part 1002), 1002.14
