Sec 1-Page 39

A regional lender introduces a Premier Borrower Program offering reduced interest rates and lower origination fees. During a CFPB fair lending review, investigators discover that qualified minority applicants were routinely excluded from the program despite meeting all underwriting standards.

Which prohibited basis under ECOA most directly applies to this violation?

A mortgage company gives loan officers discretion when setting pricing adjustments. An internal audit later reveals that applicants with darker skin tones consistently received higher rates and fees than similarly qualified applicants within the same ethnic group.

Which prohibited basis applies in this situation?

A borrower applies for a mortgage loan and fully qualifies under the lender’s underwriting guidelines. After learning the borrower belongs to a particular religious group, management instructs the underwriter to deny the application due to community concerns.

Which prohibited basis under ECOA applies?

An applicant who recently immigrated to the United States applies for a mortgage loan with excellent credit, stable employment, and sufficient assets. Although the applicant satisfies all lending requirements, the file is denied after management expresses concerns about the applicant’s foreign background.

Which prohibited basis applies?

A lender routinely requires female applicants to provide additional income documentation before approving mortgage loans, while similarly qualified male applicants are approved without the extra conditions.

Which prohibited basis applies?

A mortgage lender’s underwriting software automatically assigns higher risk ratings to unmarried applicants, resulting in more denials and stricter loan conditions.

Which prohibited basis applies under ECOA?

A 72-year-old borrower with strong credit, stable retirement income, and full legal capacity applies for a refinance loan. The lender denies the application solely because management prefers not to make loans to older applicants.

Which prohibited basis applies?

A borrower applies for a mortgage loan using documented Social Security disability income and housing assistance benefits. Although the income is stable and verifiable, the underwriter refuses to consider it when evaluating repayment ability.

Which prohibited basis applies?

A borrower previously filed a valid Truth-in-Lending complaint against a lender. One year later, the borrower applies for another mortgage loan and is denied after management references the prior complaint during the underwriting review.

Which prohibited basis applies?