An operations lead is resolving ECOA Prohibited Discrimination Bases during a loan-team coaching session. Which action best fits the rule?
Correct Answer
D) Provide appraisal and valuation copies on time
Why this is correct: ECOA and Regulation B require that applicants receive copies of appraisals and valuations promptly, typically within three business days of completion or before closing. Providing these copies on time is a direct compliance action. Why the other choices are wrong: "Apply the consumer complaint timing rule even though the file is testing ECOA Prohibited Discrimination Bases" is wrong because applying an unrelated timing rule does not fulfill the specific ECOA requirement for appraisal copies. "Wait until a regulator asks for the file before applying the federal requirement" is wrong because compliance must be proactive, not delayed until regulatory inquiry. "Rely on oral agreement when the rule requires documented compliance" is wrong because ECOA mandates written copies; oral agreements are insufficient. Exam tip: For ECOA/Regulation B questions, remember that providing appraisal/valuation copies to applicants on time is a key requirement and often the correct answer.
Why This Is the Correct Answer
The correct response is "Provide appraisal and valuation copies on time" because ECOA/Regulation B prohibits discrimination and requires action notices and valuation copies.
Why the Other Options Are Wrong
Option A: Apply the consumer complaint timing rule even though the file is testing ECOA Prohibited Discrimination Bases.
This distractor shifts the issue to a different trigger, product, or timing rule instead of applying the rule tested in the stem.
Option B: Wait until a regulator asks for the file before applying the federal requirement.
Wait until a regulator asks for the file before applying the federal requirement. is not correct because it does not apply the rule tested by this file scenario.
Option C: Rely on oral agreement when the rule requires documented compliance.
Rely on oral agreement when the rule requires documented compliance. is not correct because it does not apply the rule tested by this file scenario.
Memory Technique
ECOA and Regulation B: identify the rule being tested, then choose the action that documents or applies that rule before the file moves forward.
Exam Tip
Match the file facts to ECOA and Regulation B; do not choose an exception or shortcut that skips the required rule.
Common Mistakes to Avoid
- -Choosing an internal exception instead of the governing rule
- -Treating preliminary or informal facts as a substitute for required documentation
- -Answering from a familiar but unrelated mortgage topic
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