CRCM Fair Lending and Equal Credit Opportunity

Question 1

The Equal Credit Opportunity Act (ECOA) prohibits discrimination in credit transactions based on which of the following?

Accepted Answer

Race, color, religion, national origin, sex, marital status, or age

Answer

Credit score below 600

Answer

Employment less than two years

Answer

Loan amount below $1,000

Question 2

Under ECOA, how many days does a creditor have to notify an applicant of action taken on a completed credit application?

Accepted Answer

30 days

Answer

15 days

Answer

45 days

Answer

60 days

Question 3

What is 'redlining' in fair lending?

Accepted Answer

Refusing to lend or imposing unfavorable terms in minority neighborhoods

Answer

Charging higher interest rates to low-income borrowers

Answer

Requiring cosigners based on the applicant's age

Answer

Offering credit only through preferred brokers

Question 4

Which federal law specifically prohibits discrimination in residential mortgage lending based on race or national origin?

Accepted Answer

Fair Housing Act

Answer

Truth in Lending Act

Answer

Gramm-Leach-Bliley Act

Answer

Community Reinvestment Act

Question 5

'Disparate impact' in fair lending refers to:

Accepted Answer

A neutral lending policy that disproportionately harms a protected class

Answer

A lender who openly states discriminatory policies

Answer

A borrower who disputes a loan denial

Answer

Charging different rates to different bank branches

Question 6

Under ECOA, an adverse action notice must include:

Accepted Answer

The specific reasons for denial or a statement that reasons are available upon request

Answer

The borrower's credit score only

Answer

Only the creditor's contact information

Answer

The amount the borrower was approved for instead