What is covered under Reg B?
Regulation B covers the actions of a creditor before, during, and after a credit transaction. This list also includes refinancing, credit applications, information requirements, standards of creditworthiness, investigation procedures, and revocation or termination of credit.
What are prohibited bases for declining to extend credit to a loan applicant?
As used in this part, prohibited basis refers not only to characteristics – the race, color, religion, national origin, sex, marital status, or age – of an applicant (or officers of an applicant in the case of a corporation) but also to the characteristics of individuals with whom an applicant is affiliated or with …
What is the difference between ECOA and regulation B?
The ECOA is the Equal Credit Opportunity Act, which Congress passed to prohibit lending discrimination on the basis of certain factors. Regulation B is the rule that the Federal Reserve created to enforce the ECOA.
What is not protected under ECOA and FHA?
Two federal laws, the Equal Credit Opportunity Act (ECOA) and the Fair Housing Act (FHA), offer protections against discrimination. The ECOA forbids credit discrimination on the basis of race, color, religion, national origin, sex, marital status, age, or whether you receive income from a public assistance program.
What are the only three reasons a person can be denied credit according to the Equal Credit Opportunity Act?
The Federal Trade Commission (FTC), the nation’s consumer protection agency, enforces the Equal Credit Opportunity Act (ECOA), which prohibits credit discrimination on the basis of race, color, religion, national origin, sex, marital status, age, or because you get public assistance.
Is it legal to ask race on a credit application?
A law called the Equal Credit Opportunity Act (ECOA) enacted in 1974 makes it illegal for lenders to discriminate based on race, national origin, gender, age, marital status, or because one receives public assistance. So ECOA says lenders can’t use race, ethnicity, gender, and age to make loan decisions.
What is a Reg B application?
Under Regulation B, an. “application” means an oral or written request for an extension of credit made in accordance with. procedures used by a creditor for the type of credit requested. “
What are federal banking regulations?
Federal banking regulations are in place to protect the interest of the public. Banking regulators audit, examine and investigate banks and provide information to various government agencies in order to ensure that the banking system is working and to avoid and catastrophic situations from occurring.
What is a regulation b application?
Regulation B defines the term “application” to mean an oral or written request for an extension of credit that is made in accordance with procedures used by a creditor for the type of credit requested.
What is the definition of regulation B?
Updated Mar 12, 2019. Regulation B is a regulation intended to prevent applicants from being discriminated against in any aspect of a credit transaction. Regulation B outlines the rules that lenders must adhere to when obtaining and processing credit information.