What is the primary purpose of the Equal Opportunity Act?
The legislation made it illegal for companies to discriminate against employees or potential employees based on race, color, religion, sex or national origin. Title VII of the law established the Equal Employment Opportunity Commission (EEOC), whose main purpose is to investigate claims of employment discrimination.
What does Tila stand for?
Truth in Lending Act
Is respa still in effect?
RESPA is a federal statute now regulated by the Consumer Financial Protection Bureau (CFPB).
What types of fees and conditions are prohibited under respa?
Section 8 of RESPA prohibits anyone from giving or accepting a fee, kickback or anything of value in exchange for referrals of settlement service business involving a federally related mortgage loan. In addition, RESPA prohibits fee splitting and receiving unearned fees for services not actually performed.
What is race on medical form?
The revised standards contain five minimum categories for race: American Indian or Alaska Native, Asian, Black or African American, Native Hawaiian or Other Pacific Islander, and White. There are two categories for ethnicity: “Hispanic or Latino” and “Not Hispanic or Latino.”
How soon after a credit application is denied does an applicant need to be notified in writing?
30 days
Which of the following is a prohibited basis?
The definition of prohibited basis varies based on the specific regulation, but the possible prohibited bases are: race or color, religion, national origin, gender or sex, marital status, age, receipt of income from public assistance, exercise of rights under the CCPA, handicap, or familial status.
When must you notify an applicant of a credit decision?
Once a creditor has obtained all the information it normally considers in making a credit decision, the application is complete and the creditor has 30 days in which to notify the applicant of the credit decision.
Why are kickbacks prohibited under respa?
The Real Estate Settlements Procedures Act (RESPA) protects consumers by banning kickbacks that tend to unnecessarily increase the cost of mortgage settlement services. RESPA also helps promote a level playing field by ensuring companies compete for business on fair and transparent terms.
Is Race asked on credit applications?
When You Apply For Credit, Creditors May Not… Discourage you from applying or reject your application because of your race, color, religion, national origin, sex, marital status, age, or because you receive public assistance.
What is the difference between race and ethnicity on a form?
“Race” is usually associated with biology and linked with physical characteristics such as skin color or hair texture. “Ethnicity” is linked with cultural expression and identification. However, both are social constructs used to categorize and characterize seemingly distinct populations.
What is Reg B compliance?
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.
What are the five C’s of credit?
The system weighs five characteristics of the borrower and conditions of the loan, attempting to estimate the chance of default and, consequently, the risk of a financial loss for the lender. The five Cs of credit are character, capacity, capital, collateral, and conditions.
Why was Tila created?
TILA was created to enhance overall consumer protection by preventing lenders from using predatory tactics.
What is a respa violation?
A RESPA violation occurs when a title company has a financial interest (or ownership) in a real estate transaction where a buyer’s loan is “federally insured.” RESPA is a consumer protection law created to make sure that buyers of residential properties of one to four family units are informed in detailed writing …
What is Reg Z Truth in Lending?
Regulation Z, which is part of the Truth in Lending Act, is a consumer-protection law intended to ensure lenders clearly disclose certain credit terms in a clear way for borrowers. Understanding Regulation Z could help you become a savvier consumer of credit products.
What are the 6 respa triggers?
The six items are the consumer’s name, income and social security number (to obtain a credit report), the property’s address, an estimate of property’s value and the loan amount sought.
What loans are not subject to Reg Z?
Coverage Considerations under Regulation Z Regulation Z does not apply, except for the rules of issuance of and unauthorized use liability for credit cards. (Exempt credit includes loans with a business or agricultural purpose, and certain student loans.
What is the motivation for the Equal Credit Opportunity Act?
The act’s purpose is to prevent lenders from using race, color, sex, religion, or other non-creditworthiness factors when evaluating a loan application, establishing terms of a loan, or any other aspect of a credit transaction.
Is it harder to get a loan if you are black?
Studies found out that high-income blacks were almost twice as likely to end up with subprime home-purchase mortgages as low-income whites. Loan officers were clearly aware that they were exploiting their customers, in some cases referring to blacks as “mud people” and to subprime lending as “ghetto loans”.
What is the meaning of race in application form?
Race and ethnicity are used to categorize certain sections of the population. In basic terms, race describes physical traits, and ethnicity refers to cultural identification. Race may also be identified as something you inherit while ethnicity is something you learn.
What are the only three reasons a person can be denied credit according to the Equal Credit Opportunity Act?
National Origin, or Sex — 12 CFR § 1002.6(b)(9) Except as otherwise permitted or required by law, a creditor shall not consider race, color, religion, national origin, or sex (or an applicant’s or other person’s decision not to provide the information) in any aspect of a credit transaction.
How much do brokers earn?
the commission rates are relatively similar across lenders, with upfront commissions typically ranging from 0.46% to 0.65% of the loan amount, about $3,000 on a $500,000 loan. Trailing commissions typically range from 0.1% to 0.35% of the ongoing loan, about $1,000 per year on a $500,000 loan.
What is Z rule in banking?
TILA promotes the informed use of consumer credit by requiring timely disclosure about its costs. It also includes substantive provisions such as the consumer’s right of rescission on certain mortgage loans and timely resolution of billing disputes.
What is Reg Z in lending?
Regulation Z prohibits certain practices relating to payments made to compensate mortgage brokers and other loan originators. The goal of the amendments is to protect consumers in the mortgage market from unfair practices involving compensation paid to loan originators.
What does Tila apply to?
The Truth in Lending Act (TILA) protects consumers in their dealings with lenders and creditors. The TILA applies to most kinds of consumer credit, including both closed-end credit and open-end credit. The TILA regulates what information lenders must make known to consumers about their products and services.
What is prohibited by respa?
Section 8. Section 8 of RESPA prohibits a person from giving or accepting any thing of value for referrals of settlement service business related to a federally related mortgage loan. It also prohibits a person from giving or accepting any part of a charge for services that are not performed.