(20hr) Day 3 - ECOA - Discussion Blog Questions

1.) What is the purpose of ECOA and how is the law incorporated in a mortgage loan application form?

2.) ECOA lists certain categories that are prohibited areas of discrimination.  List one of those protected categories and in your own words explain why its prohibited?


3.) If age is considered a protected category under ECOA, under what circumstances can a lender choose to use it in making a loan decision?


4.) Are timelines imposed by ECOA on a  lender to provide some sort of answer to an applicant about what is happening on his or her loan?  If it does, what should the applicant expect to see from the lender?



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14 comments:

  1. Q1
    The purpose of the ECOA is to protect those seeking extensions of credit - lending companies are not allowed to discriminate on applicants based on race, age, gender, marital status, etc. This information is requested on the forms, but not necessarily required, and must be noted on the application if the borrower chooses not to provide this information.

    Q2
    Marital status - this is prohibited because it would typically target one group of people over others. All groups, no matter the status, should be considered equally.

    Q3
    When other positive factors would make up for whatever is considered a negative factor.

    Q4
    Yes, the timeline is 30 days after receiving the application (90 days if there is no response or a counter offer). A mailed copy, or delivered copy, of the appraisal will be sent to the applicant..

    ReplyDelete
  2. 1 of 4:
    To prevent discrimination by companies offering loans.

    2 of 4:
    Sex. This protects borrowers from discrimination based on sex resulting in the offering of different terms of the loan even with similar income and credit worthiness.

    3 of 4:
    A lender can consider age to determine the borrower is of legal age to engage in the contract.

    4 of 4:
    Within 30 days after receiving a completed application or within 90 days of lender making a counteroffer that the borrower hasn't accepted.

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  3. 1 of 4
    ECOA is meant to protect the consumer from discrimination of age, sex, race, marital status etc.

    2 of 4
    Age - Because the applicant is either too young or considered elderly should not determine the eligibility of the consumer, considering that the applicant has history of good creditworthiness. It should not bar the applicant just off that basis.

    3 of 4
    If the applicant is a minor or dependent with no credit history or if considered elderly but shows history of satisfactory creditworthiness.

    4 of 4
    Yes, 30 days after application has been received or 90 days if counter offer has been submitted. The applicant should expect a copy of the approval, counter offer or adverse action notice.

    ReplyDelete
  4. 1.)
    The ECOA ensures that companies engaging in the extension of credit do so justly and without discrimination based upon sex or marital status.

    2.)
    Age. Being too young or too old shouldn't determine your eligibility for the loan.

    3.)
    When there are other positive factors that would still show the persons creditworthiness.

    4.)
    Yes, 30 days after receiving the application or 90 days if there is a counter offer.

    2.)

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  5. 1 of 4
    ECOA was put into effect to protect consumers against discrimination, race, marital status, gender

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  6. 2 of 4
    Race is prohibited because it has nothing to do with the process & verification in determining whether an individual or couple can repay their loan

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  7. 3 of 4
    Age would be used to verify they are of age to get a loan & doesn't the MLO need to be aware of giving 30 year mortgages over a certain age?

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  8. 4 of 4
    the time limit is 30 days unless there is a counteroffer which would then require 90 days

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  9. 1 of 4: ECOA is put in place to protect the borrower from discrimination in regards of race, sex, color or marital status.

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  10. 2 of 4:
    Race: Everyone should be considered available for credit regardless who or what they look like. We need to look at everyone as if we are looking in a mirror.

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  11. 3 of 3:
    The only time you can deny an individual for age if they are under 18 years of age and not able to enter into a binding contract. Also must determine if the consumer is able to repay the dept.

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  12. 4 of 4:
    30 days from receiving an application and 90 days of a lenders counter offer.

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  13. 1 of 4

    prohibit against credit discrimination and ensure all equal access to credit

    2 of 4 Race is a protected class; everyone should be looked at equally regardless of race

    3 of 4 if the borrower is under the legal age to contract

    4 of 4
    Within 30 days after receiving a completed application or within 90 days of lender making a counteroffer that the borrower hasn't accepted.

    ReplyDelete
  14. 1. To ensure that companies engaging in the extension of credit do so justly and without
    discrimination based upon sex or marital status.
    2. Age...all borrowers should be looked at equally no matter what their age.
    3. If the borrower is a minor or income the borrower is receiving is based on age, ex social security, proving the borrowers ability to repay the loan
    4. • Thirty (30) days after receiving a completed application concerning the creditor's
    approval of, counteroffer to, or adverse action on the application;
    • Thirty (30) days after taking adverse action on an existing account; or
    • Ninety (90) days after notifying the applicant of a counteroffer if the applicant does not
    expressly accept or use the credit offered.

    ReplyDelete