An 18-year-old applies for a mortgage. Under ECOA, age-based discrimination would be prohibited except when:
Correct Answer
B) The applicant lacks legal capacity to enter into contracts
ECOA prohibits age discrimination, but there is an exception when the applicant lacks the legal capacity to enter into a binding contract. In most states, individuals under 18 cannot enter into binding contracts, but this 18-year-old would have legal capacity.
Why This Is the Correct Answer
ECOA prohibits age discrimination, but there is an exception when the applicant lacks the legal capacity to enter into a binding contract. In most states, individuals under 18 cannot enter into binding contracts, but this 18-year-old would have legal capacity.
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Previous Question
A borrower receives a Loan Estimate on Monday and wants to lock their interest rate. The lender's rate lock policy requires a 4-business-day waiting period after Loan Estimate delivery. What is the earliest day the borrower can lock their rate?
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For a closed-end mortgage loan, when must the creditor provide the Closing Disclosure to the borrower?