A lender discovers an applicant receives alimony payments. Under ECOA, the lender:
Correct Answer
B) May consider the alimony income if the applicant chooses to disclose it
Under ECOA and Regulation B, a creditor may not inquire about alimony, child support, or separate maintenance income unless the applicant voluntarily discloses it or relies on it to establish creditworthiness. If disclosed, the creditor may consider its reliability and continuity.
Why This Is the Correct Answer
Under ECOA and Regulation B, a creditor may not inquire about alimony, child support, or separate maintenance income unless the applicant voluntarily discloses it or relies on it to establish creditworthiness. If disclosed, the creditor may consider its reliability and continuity.
More Federal Laws Questions
A mortgage broker's website states 'Qualified borrowers can get loans with down payments as low as 3%.' Which statement about TILA advertising requirements is correct?
A loan's APR increases from 4.25% on the Loan Estimate to 4.35% on the Closing Disclosure due to a rate lock expiration. What action is required?
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