What is the ECOA rule?

What is the ECOA rule?

The ECOA Valuations Rule requires creditors to disclose to applicants that they have the right to receive copies of appraisals and written valuations.

What are the five parts of ECOA?

Understanding the Equal Credit Opportunity Act (ECOA)

  • Race.
  • Color.
  • Religion.
  • National origin (the country where you or your ancestors were born)
  • Sex (including gender, sexual orientation, and gender identity)
  • Marital status.
  • Age (provided the applicant is old enough to enter into a contract)

What is ECOA?

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 When originally enacted, ECOA gave the Federal Reserve Board responsibility for prescribing the implementing regulation.

What are the 6 protected classes under ECOA?

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 is the difference between ECOA and Regulation B?

What Is the Difference Between the ECOA and Regulation B? The ECOA is the Equal Credit Opportunity Act, which Congress passed to prohibit lending discrimination on the basis of certain factors. Regulation B is the rule that the Federal Reserve created to enforce the ECOA.

What disclosures are required by ECOA?

The ECOA requires disclosure of the principal reasons for denying or taking other adverse action on an application for an extension of credit….§ 1002.9 Notifications.

  • Use of the term adverse action.
  • Expressly withdrawn applications.
  • When notification occurs.
  • Location of notice.
  • Prequalification requests.

What are ECOA disclosures?

What is an ECOA Notice? ECOA Notice is a disclosure statement that a lender, under certain circumstances, is required to send to a person who requests for an extension of credit.

Who does Reg B apply to?

3601 et seq., unlike ECOA, is not a “Federal consumer financial law” as defined by the Dodd-Frank Act for which the CFPB has supervisory authority. Regulation B applies to all persons who, in the ordinary course of business, regularly participate in the credit decision, including setting the terms of the credit.