What are the two exceptions when a creditor may ask the applicants marital status?
Unmarried may be defined to include divorced, widowed, or never married, but the application must not be structured in such a way as to encourage the applicant to distinguish among these. A creditor may ask if an applicant is receiving alimony, child support, or separate maintenance payments.
What are the three types of discrimination under ECOA?
Types of Lending Discrimination The courts have recognized three methods of proof of lending discrimination under the ECOA and the FHAct: Overt evidence of disparate treatment; Comparative evidence of disparate treatment; and Evidence of disparate impact.
What are the prohibited and protected classes under Reg B ECOA?
What Are the Prohibited Bases of Reg B? Prohibited basis under Regulation B refers to a borrowers race, color, religion, national origin, sex, marital status, or age.
Which of the following violates the Equal Credit Opportunity Act ECOA )?
ECOA makes it illegal for lenders to discriminate based on race, color, religion, national origin, sex, marital status, age, the receipt of public assistance, and the applicants exercise of specific consumer protection laws.
What information is required on the application under ECOA?
The creditor shall inform the applicant(s) that the information regarding ethnicity, race, sex, marital status, and age is being requested by the Federal Government for the purpose of monitoring compliance with Federal statutes that prohibit creditors from discriminating against applicants on those bases.
What are the prohibited basis factors?
(z) Prohibited basis means race, color, religion, national origin, sex, marital status, or age (provided that the applicant has the capacity to enter into a binding contract); the fact that all or part of the applicants income derives from any public assistance program; or the fact that the applicant has in good faith
What are the prohibited factors of ECOA?
prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age, because an applicant receives income from a public assistance program, or because an applicant has in good faith exercised any right under the Consumer Credit Protection
What are two questions you should avoid asking based on ECOA?
Any questions about your race, ethnicity and gender cannot be used as a reason to approve or deny your credit application. Creditors have to provide equal information to all borrowers throughout the entire transaction.
