A married woman applies for a mortgage using only her income and credit. Under ECOA, the lender may:
Correct Answer
C) Consider only her individual creditworthiness
Under ECOA and Regulation B, a creditor may not require the signature of an applicant's spouse or other person on a credit instrument if the applicant qualifies under the creditor's standards of creditworthiness for the amount and terms requested. The lender must evaluate her individual creditworthiness.
Why This Is the Correct Answer
Under ECOA and Regulation B, a creditor may not require the signature of an applicant's spouse or other person on a credit instrument if the applicant qualifies under the creditor's standards of creditworthiness for the amount and terms requested. The lender must evaluate her individual creditworthiness.
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?
A lender originates a mortgage that meets all QM requirements. Three years later, the borrower defaults and claims the lender violated the ATR rule. What legal protection does the lender have?
For a closed-end mortgage loan, when must the creditor provide the Closing Disclosure to the borrower?
Which of the following documents must be provided to trigger the start of the 3-day rescission period?
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