The Equal Credit Opportunity Act (ECOA) and Regulation B are the focus of this course. ECOA offers consumers and businesses protection against discrimination under nine prohibited basis during a credit transaction. Regulation B, issued by the Board of Governors of the Federal Reserve, is the collective rules and administrative codes that implement the Act. Furthermore, the Board's Division of Consumer and Community Affairs has issued an official staff interpretation as Supplement I to Regulation B.
The purpose of ECOA is to require that financial institutions make credit equally available to all creditworthy customers.
This course is divided into two lessons. Lesson 1 provides an overview of the Act-- its history, a discussion of the prohibited basis, and enforcement/compliance issues. Lesson 2 contains more details of how the Act affects the mortgage lending process and major compliance requirements.
Practice questions, links, and definitions are available in both lessons to supplement the course materials and further facilitate your learning experience.
Course Outline:
Lesson 1 - ECOA Overview
- The Equal Credit Opportunity Act
- History of ECOA
- Discrimination
- Equal Housing Opportunity Poster
- Enforcement
- Penalties and Liabilities
- State Laws
- Self-Testing
Lesson 2 - ECOA Compliance Requirements
- ECOA in Mortgage Banking
- Advertising
- Preliminary Interview
- Requesting Information
- Information for Monitoring Purposes
- Evaluating Applications
- Extending Credit
- Special-Purpose Credit Programs
- ECOA Notifications
- Providing Appraisal Reports
- Record Retention
- Credit Information
Course Credit:
Completion of this course earns five points toward MBA's Certified Mortgage Banker (CMB), or
Certified Mortgage Technologist (CMT) designations. This course also earns five points towards
MBA's Mortgage Compliance (CMCP Level I) Achievement Certificate program. |