EthicsQuestion 296 of 400
Under ECOA, when a lender takes adverse action on an application, the applicant is generally entitled to:
a.Nothing, unless the applicant asks in writing
b.A refund of the application fee
c.A notice stating the specific reasons for the denial (or how to obtain them)
d.An automatic second review by a federal regulator
Explanation
ECOA/Regulation B requires an adverse-action notice giving the specific principal reasons for denial or telling the applicant how to request them. There is no requirement to refund fees, no automatic federal re-review, and the notice is owed without the applicant having to request it first.
Law Reference: ECOA / Regulation BPractice all 400 questions free — no signup required.
Related questions on this topic
- A file shows the same phone number for the borrower, the seller, and the appraiser, and the sale price is far above the neighborhood. These facts most likely indicate:
- Which of the following is NOT a prohibited basis for discrimination under the Equal Credit Opportunity Act (ECOA)?
- A creditworthy single woman is told she must have a male cosigner even though her income and credit qualify her on her own. This most likely violates ECOA on the basis of:
- A loan officer discourages a qualified applicant from applying after learning the applicant is 68 years old, saying 'a loan probably isn't right for someone your age.' This is:
- Which characteristic is a protected class under the federal Fair Housing Act that is NOT expressly listed in ECOA?
- A family with three young children is told an apartment complex is 'really better suited for adults.' This most likely violates the Fair Housing Act's protection for:
Last reviewed: · editorial process
PrepPass Editorial Team · Verified against NMLS SAFE Mortgage Loan Originator National Test · How we review