CCA Regulatory & Compliance Standards 2

Question 1

Under Regulation B, how long does a creditor generally have to notify a consumer applicant of action taken after receiving a completed application?

Accepted Answer

30 days

Answer

Regulation B requires notice of approval, counteroffer, or adverse action within 30 days of receiving a completed application.

Question 2

Which of the following is NOT a prohibited basis for credit discrimination under the Equal Credit Opportunity Act?

Accepted Answer

Credit history

Answer

Credit history is a legitimate underwriting factor, while marital status, public assistance income, and age are prohibited bases.

Question 3

A borrower qualifies for a loan on her own income, but the lender requires her husband to co-sign. Under Regulation B, this is generally:

Accepted Answer

Prohibited because the spouse's signature cannot be required when the applicant qualifies individually

Answer

Reg B's spousal signature rule bars requiring a spouse's signature when the applicant qualifies on their own creditworthiness.

Question 4

Under the Fair Credit Reporting Act, most negative information other than bankruptcies may generally be reported for how long?

Accepted Answer

7 years

Answer

Most adverse items drop off after 7 years, while Chapter 7 bankruptcies can be reported for 10 years.

Question 5

A lender pulls a consumer credit report on a business owner's spouse who is not an applicant, guarantor, or owner. Under FCRA, this most likely lacks:

Accepted Answer

A permissible purpose

Answer

FCRA allows credit reports to be obtained only for a permissible purpose, such as a credit transaction involving that consumer.

CCA - Certified Credit Analyst Practice Test

CCA - Certified Credit Analyst Practice Test

CCA Regulatory & Compliance Standards 2