Federal Mortgage-Related Laws Flashcards
7 cards from real Mortgage practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Federal Mortgage-Related Laws flashcards as text
Under ECOA, a creditor must notify a loan applicant of an adverse action within how many days of receiving a completed application?
Answer: 30 days
ECOA and Regulation B require creditors to provide an adverse action notice within 30 days of receiving a completed application.
Which protected class was added to the Fair Housing Act by the 1988 amendments?
Answer: Familial status and disability
The Fair Housing Amendments Act of 1988 added familial status and disability (handicap) to the original protected classes.
HMDA requires covered lenders to collect and report data on mortgage applications primarily to:
Answer: Detect and deter discriminatory lending patterns
HMDA data is used by regulators and the public to identify potential discriminatory or predatory lending practices across geographic areas.
Under the Fair Housing Act, which of the following lender actions is considered illegal steering?
Answer: Directing minority applicants toward higher-cost loan products without objective basis
Steering occurs when lenders direct borrowers to less favorable loan products based on a protected characteristic rather than creditworthiness.
The Community Reinvestment Act (CRA) was enacted primarily to address:
Answer: Redlining and the failure of banks to serve low- and moderate-income communities
CRA was enacted in 1977 to encourage depository institutions to help meet the credit needs of the communities they serve, including low- and moderate-income neighborhoods.
Which agency is primarily responsible for enforcing ECOA in the context of mortgage lending by non-bank mortgage companies?
Answer: Consumer Financial Protection Bureau (CFPB)
The CFPB has primary enforcement authority over ECOA (Regulation B) for non-depository mortgage lenders.
Under ECOA, a creditor MAY ask about an applicant's marital status in which situation?
Answer: When state property law directly affects the creditor's rights in the collateral
Regulation B allows creditors to ask about marital status when it is relevant to state law rights in the collateral securing the loan, such as in community property states.