What Reg is fair lending?

Lending Discrimination Statutes and Regulations The Consumer Financial Protection Bureau’s Regulation B, found at 12 CFR part 1002, implements the ECOA. Regulation B describes lending acts and practices that are specifically prohibited, permitted, or required.

Which of the below are included in the definition of fair lending in the Dodd Frank Act?

The Act provides a definition for “fair lending.” This definition states that “fair lending” consists of “fair, equitable, and nondiscriminatory access to credit for consumers.” Furthermore, the Act grants broad general oversight of the “fair lending” area to the CFPB.

What is fair lending compliance?

What is fair lending? Fair lending prohibits lenders from considering your race, color, national origin, religion, sex, familial status, or disability when applying for residential mortgage loans. Fair lending guarantees the same lending opportunities to everyone. Is there a law that protects my fair lending rights?

Is CRA a fair lending law?

Reinvestment Act and Fair Lending Laws The CRA requires that financial institutions make credit available to LMI individuals and areas, small businesses, and small farms.

What are the three statutes that support fair lending practices?

HUD’s regulations are at 24 CFR 100. 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 is prohibited basis under ECOA?

“Prohibited basis means race, color, religion, national origin, sex, marital status, or age (provided that the applicant has the capacity to enter into a binding contract); the fact that all or part of the applicant’s income derives from any public assistance program; or the fact that the applicant has in good faith …

What is redlining fair lending?

Redlining. Redlining is the practice of denying a creditworthy applicant a loan for housing in a certain neighbor hood even though the applicant may otherwise be eligible for the loan.

What are unfair lending practices?

Predatory lending is any lending practice that imposes unfair or abusive loan terms on a borrower. It is also any practice that convinces a borrower to accept unfair terms through deceptive, coercive, exploitative or unscrupulous actions for a loan that a borrower doesn’t need, doesn’t want or can’t afford.

What are the 2 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.