Sec 1-Page 44 2

1. Question

A married borrower applies individually for a mortgage loan and independently qualifies under the lender’s underwriting standards based solely on personal income, assets, and credit history. The lender nevertheless requires the borrower’s spouse to sign the promissory note as an additional obligor.

During a Regulation B examination, regulators review whether the lender improperly required an additional signature.

Which statement best reflects ECOA requirements?

A) A creditor may require the applicant's spouse to sign any mortgage note involving married applicants
B) A creditor may require the spouse's signature whenever the loan exceeds conforming loan limits
C) A creditor may not require the signature of an applicant's spouse or another person if the applicant independently qualifies under the creditor's standards of creditworthiness
D) A creditor may require spousal signatures on all owner-occupied residential mortgage loans

2. Question

A lender approves a mortgage loan secured by jointly owned real property. Although only one spouse applies for the loan, the lender requires the non-applicant spouse to sign documents necessary to create a valid lien and waive certain property rights associated with the collateral.

Under Regulation B, which action is permissible?

A) A creditor may require signatures necessary to create a valid lien, pass clear title, waive rights, or assign earnings related to the collateral property
B) A non-applicant spouse may never sign any mortgage-related document under ECOA
C) A creditor may require the spouse to become personally liable for the debt in all cases involving jointly owned property
D) Regulation B prohibits creditors from obtaining signatures related to collateral rights

3. Question

A borrower does not independently qualify for the requested mortgage loan under the lender’s underwriting standards. The creditor informs the borrower that an additional creditworthy party will be required to support the loan request.

Which statement best reflects ECOA requirements regarding co-borrowers and co-guarantors?

A) Creditors may require only a spouse to serve as the additional party
B) Creditors may request that the applicant obtain a co-borrower or co-guarantor if additional personal liability is necessary to support the extension of credit
C) A creditor must automatically deny the application without allowing a co-guarantor
D) Co-guarantors are prohibited for residential mortgage transactions under Regulation B

4. Question

A borrower applies individually for mortgage credit but relies on income earned by another individual to qualify for the requested loan amount. The lender requires the individual providing the income to sign documentation making the income available for repayment purposes.

Which statement best reflects Regulation B requirements?

A) A creditor may never require another person's signature when outside income is used for qualification
B) A creditor may require the signature of the person whose separate income is relied upon to make the income available to repay the debt
C) Separate income from another person may not be considered for mortgage qualification purposes
D) Only spouses may provide qualifying income for an individual mortgage application

5. Question

A borrower applying individually for mortgage credit chooses a close relative rather than a spouse to act as a co-guarantor. The lender refuses and states that only spouses may serve as acceptable co-guarantors under company policy.

During a fair lending review, regulators examine whether the lender violated Regulation B.

Which statement is correct?

A) The applicant has the right to choose any creditworthy co-borrower or co-guarantor, and the creditor may not impose stricter requirements on that party than on the applicant
B) Creditors may require spouses to serve as co-guarantors in all residential mortgage transactions
C) Only immediate family members may serve as co-guarantors under ECOA
D) Regulation B prohibits non-spousal co-guarantors in mortgage transactions

6. Question

A married applicant requests that the mortgage loan documents be issued using a birth-given first name and a combined surname that incorporates both the applicant’s birth surname and spouse’s surname.

Which statement best reflects ECOA requirements regarding names used on credit instruments?

A) Applicants must always use the exact legal name appearing on a Social Security card
B) Married applicants must use only the spouse's surname on mortgage documents
C) Applicants may use only a birth-given surname on credit instruments
D) An applicant may use a birth-given first name together with a birth-given surname, spouse's surname, or combined surname on a credit instrument

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