3910454
Description
Mind Map by andrea.browne, updated more than 1 year ago
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Created by andrea.browne
over 8 years ago
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ECOA Reg B
- Equal credit Opportunity Act
- Redlining
- Where creditors refuse to
make loans in certain
neighborhoods due to the
personal favorable characteristics of
the residents
- Where creditors refuse to
make loans in certain
neighborhoods due to the
personal favorable characteristics of
the residents
- Reverse Redlining
- Predatory lenders would target
elderly, immigrant, and minority
populations to make risky loans
that included oppressive lending
terms
- Predatory lenders would target
elderly, immigrant, and minority
populations to make risky loans
that included oppressive lending
terms
- Redlining
- Eliminate
discriminatory
treatment of credit
applicants
- Promote the availability
of credit to all
creditworthy applicants
regardless of race, color,
religion, national origin,
sex, marital status, or age
- Prohibits Credit
Decisions based on
income from public
assistance
- Terms Related to ECOA
- Adverse Action, A refusal to
increase the amount of credit
available to an applicant who
had made an application for
an increase
- Discriminate, To treat an
applicant less favorably than
other applicants
- Discouragement, An oral or
written statement,
communicated to applicants
in advertising or by any
other means that
discourages an applicant
from applying for credit on a
prohibated basis
- Prohibited Basis, Prohibited
bases means race, color religion,
national origin, sex, marital
status or age; the fact that all or
part of the applicant's income
derives from any public
assistance program; or the fact
that the applicant has in good
faith exercised any right under
the Consumer Credit Protection
Act or any state law upon with
an exemption has been granted
by the CFPB
- Self-Testing, Any program
or study conducted by a
creditor that is designed
to evaluate the creditor's
compliance with ECOA and
Reg B
- Tester, An
individual who
poses as a loan
applicant to test a
creditor's fair
lending policies and
practices
- Tester, An
individual who
poses as a loan
applicant to test a
creditor's fair
lending policies and
practices
- Self-Testing, Any program
or study conducted by a
creditor that is designed
to evaluate the creditor's
compliance with ECOA and
Reg B
- Prohibited Basis, Prohibited
bases means race, color religion,
national origin, sex, marital
status or age; the fact that all or
part of the applicant's income
derives from any public
assistance program; or the fact
that the applicant has in good
faith exercised any right under
the Consumer Credit Protection
Act or any state law upon with
an exemption has been granted
by the CFPB
- Discouragement, An oral or
written statement,
communicated to applicants
in advertising or by any
other means that
discourages an applicant
from applying for credit on a
prohibated basis
- Discriminate, To treat an
applicant less favorably than
other applicants
- Adverse Action, A refusal to
increase the amount of credit
available to an applicant who
had made an application for
an increase
- Exceptions
- Inquires regarding race,
ethnicity, sex, marital status,
and age are required for
purposes of federal
programs that monitor
compliance with fair lending
laws. i.e. HMDA
- Creditors may obtain
information about an
applicant's protected
characteristics in
order to determine
the applicant's
eligibity for special
purpose credit.
- If the applicant does not wish to
provide this information the loan
orginator must make there best
judgement
- Creditors may obtain
information about an
applicant's protected
characteristics in
order to determine
the applicant's
eligibity for special
purpose credit.
- Inquires regarding race,
ethnicity, sex, marital status,
and age are required for
purposes of federal
programs that monitor
compliance with fair lending
laws. i.e. HMDA
- Penalties
- VIolations can result in civil penalties of $5,000 per day, where a pattern of misconduct $25,000 are permitted
- Punitive damages are limited to $10,000 in individual actions and to the lesser of $500,000 or 1% of the creditors net worth
- Punitive damages are limited to $10,000 in individual actions and to the lesser of $500,000 or 1% of the creditors net worth
- VIolations can result in civil penalties of $5,000 per day, where a pattern of misconduct $25,000 are permitted
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