CRU Regulatory Compliance & Legal Considerations 3

Question 1

Under ECOA, a lender must notify an applicant of adverse action within how many days of receiving a completed application?

Accepted Answer

30 days

Answer

ECOA requires adverse action notice within 30 days of receiving a completed credit application.

Question 2

Which of the following is NOT one of the seven federally protected classes under the Fair Housing Act?

Accepted Answer

Source of income

Answer

Source of income is not a protected class under the federal Fair Housing Act, though some states and localities have enacted protections for it.

Question 3

The primary purpose of HMDA data collection is to:

Accepted Answer

Identify discriminatory lending patterns and geographic redlining

Answer

HMDA was enacted to help regulators identify discriminatory lending patterns and ensure lenders are serving their entire communities.

Question 4

Redlining in mortgage lending is best defined as:

Accepted Answer

Refusing to lend in specific geographic areas based on racial or ethnic composition

Answer

Redlining is the illegal practice of denying credit or services in geographic areas based on the racial or ethnic composition of the neighborhood.

Question 5

Under ECOA, which of the following characteristics is explicitly prohibited as a basis for denying a mortgage application?

Accepted Answer

Marital status

Answer

ECOA prohibits credit discrimination based on race, color, religion, national origin, sex, marital status, age, or receipt of public assistance.

(CRU) Certified Residential Underwriter Practice Test