What are the Reg B disclosures?

What are the Reg B disclosures?

What are the Reg B disclosures?

Regulation B permits creditors to ask for any information in connection with a credit transaction, so long as they avoid certain clearly defined areas set forth in 12 CFR 1002.5, which include both the specific prohibited bases of discrimination and certain types of information that often relates to discrimination on a …

What does ECOA Reg B cover?

The ECOA and Regulation B allow creditors to establish special-purpose credit programs for appli cants who meet certain eligibility requirements. Generally, these programs target an economically disadvantaged class of individuals and are autho rized by federal or state law.

What is regulation B in real estate?

Reg B outlines the rules that lenders must adhere to when obtaining and processing credit information. The regulation prohibits lenders from discriminating based on age, gender, ethnicity, nationality, or marital status. 1

What is considered an application under Reg B?

The Equal Credit Opportunity Act (ECOA) via Regulation B Section 202.2 defines application as follows: “Application means an oral or written request for an extension of credit that is made in accordance with procedures established by a creditor for the type of credit requested.

What are the 9 prohibited bases of regulation B?

prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age, because an applicant receives income from a public assistance program, or because an applicant has in good faith exercised any right under the Consumer Credit Protection …

Is the appraisal disclosure required by ECOA?

I. Congress amended ECOA section 701(e) to require creditors to provide applicants with a copy of appraisals and other written valuations developed in connection with certain mortgage transactions as a matter of course, rather than only providing copies of appraisals upon applicants’ request as previously required.

What is ECOA mortgage?

The Equal Credit Opportunity Act (ECOA) is federal civil rights law that prevents lenders from discriminating against credit applicants based on factors unrelated to their ability to repay.

What are Reg B appraisal rules?

In general, the revisions to Regulation B require creditors to provide to applicants free copies of all appraisals and other written valuations developed in connection with an application for a loan to be secured by a first lien on a dwelling, and require creditors to notify applicants in writing that copies of …

What is Regulation B of ECOA?

In keeping with the broad reach of the statute’s prohibition, Regulation B covers creditor activities before, during, and after the extension of credit. You can find the full text of ECOA here (opens new window) .

What is the new ECOA valuations rule?

Before the new ECOA Valuations Rule, Regulation B required that creditors provide copies of appraisals to applicants upon request and notify them of their right to make a request.

Does ECOA apply to all creditors?

The Equal Credit Opportunity Act (ECOA), which is implemented by Regulation B, applies to all creditors. When originally enacted, ECOA gave the Federal Reserve Board responsibility for prescribing the implementing regulation.

What information can a creditor ask for under reg B?

Regulation B permits creditors to ask for any information in connection with a credit transaction, so long as they avoid certain clearly defined areas set forth in 12 CFR 1002.5, which include both the specific prohibited bases of discrimination and certain types of information that often