Fair and Equal Credit and Lending Laws: Quiz 1

Who is responsible for ensuring that reporting of a consumer's credit standing and reputation protects his right to privacy?

Consumer reporting agency

FCRA

Fair Credit Reporting Act

The Fair Credit Reporting Act defines companies that gather and evaluate consumer credit records as

consumer reporting agencies.

Mr. Jones' loan application has been denied, and the loan originator provides him with an adverse action notice as required by ECOA. The notice would include all of the following EXCEPT

credit counseling information to improve the applicant's credit score.

In an individual lawsuit, a violator of ECOA is subject to punitive damages of up to

$10,000

Under the rules for the Do-Not-Call Registry, a mortgage broker may make an unsolicited call to a potential customer whose name is on the Registry for up to how many months after that person made an inquiry or submitted an application?

3

A lender must provide a copy of the appraisal to an applicant within how many days after receipt of a written request from an applicant who has paid for the appraisal?

30

ECOA requires that an applicant be informed about action taken on his completed loan application within how many days of its filing?

30

ECOA requires that a mortgage loan applicant must be given an appraisal disclosure, notifying him of his right to get a copy of his appraisal report, within how many days of his loan application?

30 days

ECOA requires that a creditor must provide a copy of the appraisal report to a mortgage loan applicant who is denied credit if the report is requested within how many days of the notice of action taken?

90

The Fair Credit Reporting Act provides which of the following with regard to information provided to consumer reporting agencies?

A person who provides information that is later in dispute has a duty to investigate it.

Under HMDA, what is the term for an application for a home purchase loan in which the lender, after a comprehensive analysis of the applicant's creditworthiness, issues a written commitment to make a home purchase loan up to a specified amount, subject to the home's appraisal?

Preapproval request.

FTC

The Federal Trade Commission

Once a person registers his phone number on the federal do-not-call list, how long will it remain there?

Until he removes it or phone service is discontinued

A loan applicant decides to withdraw his loan application. He requests a copy of the appraisal from the lender. Is he entitled to a copy?

Yes, if he has paid or will pay for the appraisal

All of the following are mortgage loans subject to coverage under the Home Mortgage Disclosure Act EXCEPT

a home equity loan used to pay off outstanding medical bills.

ECOA allows a creditor to do all of the following EXCEPT

designate an applicant as "husband" or "wife."

The purpose of the Fair Credit Reporting Act is to

ensure the accuracy of information in consumer reports.

The FTC's Telemarketing Sales Rule requires that persons who engage in telemarketing

establish policies and procedures to ensure compliance with the rule.

The FTC Red Flags Rule requires that creditors create and monitor policies applying to red flags indicating

identity theft.

Without violating the Equal Credit Opportunity Act a loan originator may discount or refuse to consider an applicant's income because

it cannot be documented.

All of the following are included in an ECOA adverse action notice EXCEPT

names and/or contact numbers for consumer credit counseling agencies.

ECOA requires that a mortgage loan applicant must be given an appraisal disclosure, notifying him of his right to get a copy of his appraisal report if he has not been given it already

no later than the time of the notice of action taken.

The Fair Credit Reporting Act provides all of the following courses of action for an identity theft victim who has submitted a valid police report to a consumer reporting agency EXCEPT

requiring the consumer reporting agency to assist in locating the thief.

The agency that drafts and interprets the regulations implementing ECOA is

the Consumer Financial Protection Bureau.

The Federal Trade Commission's Red Flags Rule implements

the Fair and Accurate Credit Transactions Act.

The federal agency that oversees the Federal Do-Not-Call Registry is

the Federal Trade Commission.