Under the ECOA Valuations Rule, if a lender takes adverse action on a credit application, the applicant must receive a copy of any appraisal within:
Correct Answer
C) 30 days of the adverse action
Under the ECOA Valuations Rule (12 CFR 1002.14), creditors must provide applicants with copies of appraisals and other written valuations within 30 days of taking adverse action on the application. This rule helps ensure transparency in the lending process.
Why This Is the Correct Answer
Under the ECOA Valuations Rule (12 CFR 1002.14), creditors must provide applicants with copies of appraisals and other written valuations within 30 days of taking adverse action on the application. This rule helps ensure transparency in the lending process.
More Ethics & Fraud Questions
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An MLO discovers a borrower has refinanced with three different lenders in the past two years, each time increasing the loan balance and paying substantial fees. The borrower mentions they were told each refinance would 'improve their financial situation.' The MLO's appropriate response should be:
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Which federal agency is primarily responsible for receiving Suspicious Activity Reports (SARs) related to mortgage fraud?