Under ECOA, which of the following questions is permissible for a lender to ask during the application process?
Correct Answer
B) What is your employment history?
Employment history is permissible under ECOA as it relates to creditworthiness. Questions about childbearing plans, religion, and detailed marital status (beyond what's needed for property rights) are prohibited as they relate to protected characteristics.
Why This Is the Correct Answer
Employment history is permissible under ECOA as it relates to creditworthiness. Questions about childbearing plans, religion, and detailed marital status (beyond what's needed for property rights) are prohibited as they relate to protected characteristics.
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?
Which of the following documents must be provided to trigger the start of the 3-day rescission period?
For a closed-end mortgage loan, when must the creditor provide the Closing Disclosure to the borrower?
Which information is NOT required to be included in an AfBA disclosure?
A lender quotes an APR of 4.25% on a mortgage loan, but the actual APR calculation results in 4.28%. Under TILA's APR accuracy tolerance, is this disclosure compliant?
Which of the following fees would NOT be included in the finance charge calculation under TILA?
For a purchase money mortgage with a loan amount of $400,000, which of the following represents the correct method for calculating the APR?
A servicer receives a borrower's written request for payoff information on Monday. The borrower needs the information for a refinance closing scheduled for the following Friday. When must the servicer provide an accurate payoff statement?
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When a borrower submits a qualified written request (QWR) regarding their loan servicing, the servicer must respond within how many business days?
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A borrower with a high-risk loan made their first payment on March 15, 2022. The loan has an original amortization schedule of 25 years. When is the earliest date the borrower can request PMI cancellation under the HPA?