Overview
What law, enacted in 1974, requires credit decisions to be made fairly and without discrimination?
ECOA
Regulation B requires Home Lending to send certain application notices within this time frame. How many days?
30 days
Failing to comply with ECOA or Regulation B can lead to this type of legal exposure in individual and class action lawsuits.
Civil liability
What regulation implements ECOA and prohibits discrimination in credit transactions?
Regulation B
Adverse action notifications to applicants must be sent in this format.
Written
Closed loan files must be retained for this length of time.
Term of the loan
ECOA/Reg B violations can result in these two types of damages.
Actual and punitive
Reenact this iconic line.
https://encrypted-tbn0.gstatic.com/images?q=tbn:ANd9GcRkT_Q3YBnpR7fxb9aUDEpta2FA9nrwa3RJ0A&s
Goodness gracious! You're the shoplifter! You were the one caught stealing on CCTV! Oh my Gosh! No way! I cannot take this anymore! No way! My twin brother is a criminal!
This is an offer to extend credit on different terms than the applicant requested.
Counteroffer
Prequalification files must be retained for this many months.
61 months
The maximum punitive damages allowed in an individual ECOA lawsuit is this amount.
$10,000
Under Regulation B, what is the key thing you must not do that could stop someone from applying based on a prohibited basis?
Discourage them from applying
Reenact this famous movie line.
Non-originated application files must be kept at least this long from the date of loan disposition. How many years?
5 years
Clue: In a class action, punitive damages are capped at the lesser of $500,000 or this percentage of the creditor’s net worth.
1%
After taking an application or prequalification, what must Home Lending do with the information collected?
Retain it (hard-copy or electronic)
If multiple applicants live at different mailing addresses, you must do this
Send separate notices to each address
For a pre-screened solicitation, you must retain the text of the offer and the criteria used for at least this many months.
61 months
Translate this line into English with heart and soul.