Which of the following is not an example of a prohibited basis for the Equal Credit Opportunity Act? (2024)

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Which of the following is not an example of a prohibited basis for the Equal Credit Opportunity Act?

Explanation: An example that is NOT a prohibited basis for the Equal Credit Opportunity Act is annual income and military status.

(Video) The Equal Credit Opportunity Act
(The Business Professor)
What are the prohibited basis under 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.

(Video) Equal Credit Opportunity Act (ECOA) (Free Tutorial)
(National Mortgage Exam)
What is an example of a violation of the Equal Credit Opportunity Act?

Examples of Equal Credit Opportunity Act (ECOA) Enforcement

One common violation of the ECOA is charging higher rates or fees to Black, Indigenous, and People of Color (BIPOC) applicants.

(Video) Equal Credit Opportunity Act (ECOA)
(Mortgages & Beyond)
Which of the following prohibited groups fall under the Equal Credit Opportunity Act?

The Federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age (provided the applicant has the capacity to enter into a binding contract); because all or part of the applicant's income derives ...

(Video) 16.2 Equal Credit Opportunity Act ECOA | Georgia Real Estate License | RealEstateU.tv
(Real Estate U)
Which of the following is considered a prohibited basis in both the ECOA and the Fair Housing Act?

Redlining may violate both the FHAct and the ECOA.

(Video) An Overview of the ECOA, a Ten Minute Tips Program for Credit Professionals
(Michael Dennis)
Which of the following is a prohibited basis?

As used in this part, prohibited basis refers not only to characteristics - the race, color, religion, national origin, sex, marital status, or age - of an applicant (or officers of an applicant in the case of a corporation) but also to the characteristics of individuals with whom an applicant is affiliated or with ...

(Video) HMDA Reporting, Equal Credit Opportunity Act 2/28/2017
(NCUAchannel)
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.

(Video) Fair Lending: Regulation B (ECOA) | Jay Get It #RegulationB
(Jay Get It)
What is a red flag for an Equal Credit Opportunity Act violation?

Look for red flags, such as: Treated differently in person than on the phone or online. Discouraged from applying for credit. Encouraged or told to apply for a type of loan that has less favorable terms (for example, a higher interest rate)

(Video) The Equal Credit Opportunity Act through a Racial Lens
(South Carolina Legal Services)
What are the damages for violating the ECOA?

In addition to actual damages, the Act provides for punitive damages of up to $10,000 in individual lawsuits and up to the lesser of $500,000 or 1 percent of the creditor's net worth in class action suits. Successful complainants are also entitled to an award of court costs and attorney's fees.

(Video) 20 Question On The Fair Housing Act - You need to know this to pass your real estate exam!
(Real Estate Exam Questions)
What does the Equal Opportunity Act cover?

RACE, COLOR, RELIGION, SEX, NATIONAL ORIGIN Executive Order 11246, as amended, prohibits job discrimination on the basis of race, color, religion, sex or national origin, and requires affirmative action to ensure equality of opportunity in all aspects of employment.

(Video) #116: Equal Credit Opportunity Act with Expert Joe Goldberg
(With Flying Colors - Credit Union Exam Solutions)

What is the fair lending prohibited basis?

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

(Video) What is ECOA?
(Mortgage Educators)
What is prohibited under ECOA and 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.

Which of the following is not an example of a prohibited basis for the Equal Credit Opportunity Act? (2024)
Which Equal employment Opportunity Act prohibits discrimination?

Equal Employment Opportunity Commission

Title VII of the Civil Rights Act of 1964. Title VII of the Civil Rights Act, as amended, protects employees and job applicants from employment discrimination based on race, color, religion, sex and national origin.

Which of the following is a prohibited discriminatory act?

Under the laws enforced by EEOC, it is illegal to discriminate against someone (applicant or employee) because of that person's race, color, religion, sex (including gender identity, sexual orientation, and pregnancy), national origin, age (40 or older), disability or genetic information.

What are the 3 types of lending discrimination?

There are three types of lending discrimination:
  • → Overt.
  • → Disparate impact.
  • → Disparate treatment.
  • Speak with your lender's manager.
  • File a complaint with the Consumer Financial Protection Bureau (CFPB).
  • File a complaint with the U.S. Office of Fair Housing and Equal Opportunity (FHEO).
Apr 15, 2022

What are the 3 main fair lending 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)

Which of the following is one of the prohibited bases protected by Reg B?

What Are the Prohibited Bases of Reg B? Prohibited basis under Regulation B refers to a borrower's race, color, religion, national origin, sex, marital status, or age.

What is a prohibited factor?

The definition of prohibited basis varies based on the specific regulation, but the possible prohibited bases are: race or color, religion, national origin, gender or sex, marital status, age, receipt of income from public assistance, exercise of rights under the CCPA, handicap, or familial status.

What questions are avoided by ECOA?

Because of the Equal Credit Opportunity Act (ECOA), lenders are prohibited from discriminating against you because of your age, marital status, national origin, race, religion, sex, sexual orientation, and if you receieve income from public assistance programs.

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 advertisem*nts which contain an interest rate.

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

Consumer Protections Under the ECOA

Discouraging you from applying for credit based on race, color, religion, national origin, sex, marital status, age or because you receive public assistance.

What specific requirements does ECOA define?

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 ...

What are red flag rules credit?

The Red Flags Rule requires specified firms to create a written Identity Theft Prevention Program (ITPP) designed to identify, detect and respond to “red flags”—patterns, practices or specific activities—that could indicate identity theft.

What is the Fact Act red flag rule?

On January 1, 2011, the Federal Trade Commission (“FTC”) began enforcing its Fair and Accurate Credit Transactions Act of 2003 Red Flags Rule (“FACT Act Red Flags Rule”), which required that each “financial institution” or “creditor”—which includes most securities firms—implement a written program to detect, prevent ...

What is an example of a fair lending violation?

Example: A lending officer told a customer, “We do not like to make home mortgages to Native Americans, but the law says we cannot discriminate and we have to comply with the law.” This statement violated the FHAct's prohibition on statements expressing a discriminatory preference as well as Section 1002.4(b) of ...

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