What is fair lending notice?

It is illegal to discriminate in the provision of or in the availability of financial assistance. because of the consideration of : 1. Trends, characteristics or conditions in the neighborhood or geographic area surrounding.

Who enforces fair lending laws?

The Consumer Financial Protection Bureau’s Regulation B, found at 12 CFR part 1002, implements the ECOA.

Who conducts fair lending investigations?

The Consumer Financial Protection Bureau (CFPB)
The Consumer Financial Protection Bureau (CFPB) has responsibility for supervising and enforcing compliance with two federal fair lending laws: the Equal Credit Opportunity Act (ECOA) and the Home Mortgage Disclosure Act (HMDA).

Which three regulations support fair lending practices?

Two different federal laws deal with discrimination in lending: the Fair Housing Act (FHAct) and the Equal Credit Opportunity Act (ECOA). These fair lending laws prohibit lenders from discriminating in credit transactions on the basis of race, color, national origin, religion, sex, and other specified grounds.

What is the 30 day ECOA rule?

The first part of the 30-day rule requires creditors to provide notification of their credit decision within “30 days after receiving a completed application concerning the creditor’s approval of, or counteroffer to, or adverse action on the application.” While this is a mouthful to say, it really isn’t that difficult.

Is Udaap a fair lending law?

In addition to complying with fair lending laws, financial institutions are also prohibited from engaging in acts or practices deemed unfair, deceptive or abusive. A UDAAP violation can be stacked on top of a fair lending violation, thus increasing the potential civil money penalty assessed against an institution.

What are the two primary fair lending laws?

The federal fair lending laws—the Equal Credit Opportunity Act and the Fair Housing Act—prohibit discrimination in credit transactions, including transactions related to residential real estate.

What do the fair lending rules cover?

What is an example of discrimination in lending?

Examples of Lending Discrimination Refusing to consider a mortgage applicant’s disability-related income, such as SSI or SSDI. Steering a borrower to a loan with less favorable terms because of his or her race, color, religion, sex, familial status, national origin or disability.

What does a fair lending officer do?

Assess, develop and provide fair lending training to meet individual business unit and corporate requirements. Administer fair lending statistical reviews and understand results. Assess fair lending risks by preparing periodic fair lending risk assessments of the bank and applicable business units.

What is Holden Act fair lending notice?

The purpose of Fair Lending Notice is to comply with the provisions of the California Housing Financial Discrimination Act of 1977, which is also known as the Holden Act. The requirement is codified in the section 35830 of California Health and Safety Code.

What is a fair lending disclosure?

The Fair Lending is a California State disclosure that informs the loan applicant that it is illegal to discriminate against credit applicants on the basis of race, color, religion, sex, marital status, national origin or ancestry, and conditions, characteristics, or trends in the neighborhood or geographic area surrounding a housing accommodation.

What is a fair lending act?

Definition: Fair lending is the practice outlined in the Fair Housing Act of 1968. It prohibits lenders from discriminating against borrowers on the basis of race, color, national origin, religion, sex, familial status, or physical handicap.