A mortgage applicant's income is derived entirely from Social Security disability benefits. Under ECOA, the lender:
Correct Answer
B) Must consider the income but may evaluate its reliability and continuity
Under ECOA and Regulation B, creditors cannot discriminate because an applicant's income derives from public assistance programs, but they may consider the reliability and continuity of any income source, including public assistance, in determining creditworthiness.
Why This Is the Correct Answer
Under ECOA and Regulation B, creditors cannot discriminate because an applicant's income derives from public assistance programs, but they may consider the reliability and continuity of any income source, including public assistance, in determining 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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A lender receives an SCRA interest rate reduction request from a servicemember 18 months after the servicemember was discharged from active duty. The mortgage was originated before active duty began. How should the lender respond?
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A credit union's mortgage department shares customer payment history information with the credit union's investment services division to market investment products. Both divisions are part of the same credit union. Under GLBA, this practice is: