Fair Credit Laws

Laguna Beach Home



A little quiz with the answers as a cheat sheet if you are wondering about your rights to fair credit. Have you been denied employment or a loan? Quote the law noted in red

Penalty amounts under the Fair Housing Act depend on a respondent’s history of noncompliance. True False

2. Harassment is not considered a form of discrimination under the Fair Housing Act. True False

3. The Fair Housing Act prohibits any person or business engaged in real estate-related transactions from discriminating because of race, color, religion, sex, handicap, familial status, or national origin. False True

4. The Fair Housing Act was actually the first law that Congress enacted to address redlining and other issues related to fair housing and nondiscriminatory mortgage lending practices. False True

5. When HUD receives fair housing complaints, the parties to the dispute, known as the complainant and the respondent, will have an opportunity to enter a conciliation agreement. v False True

6. Disparate treatment involves treating one group of consumers differently from others, based on whether or not they are qualified for a loan. True False

7. The process of securitization includes collecting loans with similar credit risks, loan terms, and other comparable features into a “pool” and selling an interest in this pool to investors as mortgage-backed securities. False True

8. The protected classes, or those individuals or groups of individuals who will receive protection under the Fair Housing Act, are identical to those established under ECOA. False True

9. The Fair Housing Act provisions that prohibit discrimination based on familial status also apply to qualified senior housing. False True

10. Even though the Fair Housing Act does not expressly include sexual orientation or gender identity as protected classes, discrimination against LGBT individuals is arguably discrimination based on sex and in violation of the existing law. False True

1. A class that the Fair Housing Act expressly names as a protected class and that ECOA does not expressly name as a protected class is: Religion Color Handicap Sex

2. HUD’s new fair housing policy prohibits an assessment of eligibility for an FHA-insured loan that is based on a consideration of: Race National origin Handicap Marital status

3. HUD has a new policy that seeks to ensure the availability of HUD lending and housing programs without consideration of particular personal characteristics. All but which of the following is a personal characteristic that is protected under the new policy? Marital status Gender identity Sexual orientation Political party affiliation

4. The Fair Housing Act provisions that prohibit discrimination based on familial status do not apply to: Mortgage brokers Qualified senior housing HUD housing Lenders

5. A conciliation agreement cannot be finalized without the signature of: The CFPB Director A judge in a federal court in the district where the discrimination allegedly occurred An administrative law judge HUD’s Assistant Secretary

an employer refuses to promote an employee because of information contained in a consumer report, what does the Fair Credit Reporting Act require of the employer?

That it send notice of the decision not to promote to the consumer reporting agency Nothing is required because FCRA does not apply to decisions to promote X That it give the employee a copy of the report That it provide the employee with reasons for the decision not to hire him or her Consumer reporting agencies are not allowed to give an entity asking for a report a record of inquiries in connection with a credit or insurance transaction not initiated by a consumer. However, consumer reporting agencies are allowed, upon request, to disclose to a consumer a record of all inquiries received by the reporting agency within the one-year period prior to a consumer’s request that identified the consumer in connection with a credit or insurance transaction not initiated by the consumer (15 U.S.C. §1681g). report provided in a credit or insurance transaction may contain the following pieces of information, except: An identifying number used to identify the consumer The consumer’s name The consumer’s address X The consumer’s Social Security number FCRA gives consumers the right to prevent a consumer report from being provided in connection with a credit or insurance transaction that they did not initiate (15 U.S.C. §1681b(e)). To get on the do-not-send list, a consumer has two options. First, the consumer can use the notification system that the consumer reporting agency uses (FCRA requires that all consumer reporting agencies establish a notification system, which could be as simple as a toll-free telephone number). provisions of this subsection alter, affect, or supersede the applicability of any other provisions of federal law relating to medical confidentiality. Which of the following accurately states the rule for sharing information about medical treatment histories? X Only consumer consent is required in an insurance situation, but more is required for an employment or credit transaction The information cannot be shared even where the consumer consents Only consumer consent is required in a credit situation, but more is required for an insurance or employment situation Only consumer consent is required in an employment situation, but more is required for an insurance or credit transaction

• Arrest records that are more than seven years old, unless the statute of limitations has not expired, at which point the arrest may be reported until the statute of limitations expires
• Tax liens that are more than seven years old
• Accounts placed for collection (or charged off) that are more than seven years old
• Any other adverse information that is more than seven years old, other than conviction of a crime (conviction of a crime can always be reported, no matter how old);
• The name, address, and telephone number of any medical information provider unless either:
• That information does not convey information on the nature of the services (the name of a psychiatric center, for example, would not qualify because it conveys information that the consumer has mental health problems), or
• The report is being provided to an insurance company for purposes related to an insurance matter not involving property and casualty insurance

(15 U.S.C. §1681c(a))

FCRA also contains a list of situations in which the rules about what can be contained in a consumer report do not apply. The rules do not apply in the following situations:

• A credit transaction involving, or which may reasonably be expected to involve, a principal amount of at least $150,000
• The underwriting of life insurance involving, or which may reasonably be expected to involve, a face amount of at least $150,000
• An employment situation in which the employee is expected to receive an annual salary of at least $75,000

(15 U.S.C. §1681c(b))

Penalty amounts under the Fair Housing Act depend on a respondent’s history of noncompliance.
	True
	False

Penalty amounts under the Fair Housing Act depend on a respondent’s history of noncompliance.

True

False

2. Harassment is not considered a form of discrimination under the Fair Housing Act.
	True
	False

2. Harassment is not considered a form of discrimination under the Fair Housing Act.

True

False

3. The Fair Housing Act prohibits any person or business engaged in real estate-related transactions from discriminating because of race, color, religion, sex, handicap, familial status, or national origin.
	False
	True

3. The Fair Housing Act prohibits any person or business engaged in real estate-related transactions from discriminating because of race, color, religion, sex, handicap, familial status, or national origin.

False

True

4. The Fair Housing Act was actually the first law that Congress enacted to address redlining and other issues related to fair housing and nondiscriminatory mortgage lending practices.
	False
	True

4. The Fair Housing Act was actually the first law that Congress enacted to address redlining and other issues related to fair housing and nondiscriminatory mortgage lending practices.

False

True

5. When HUD receives fair housing complaints, the parties to the dispute, known as the complainant and the respondent, will have an opportunity to enter a conciliation agreement. v
	False
	True

5. When HUD receives fair housing complaints, the parties to the dispute, known as the complainant and the respondent, will have an opportunity to enter a conciliation agreement.

v

False

True

6. Disparate treatment involves treating one group of consumers differently from others, based on whether or not they are qualified for a loan.
	True
	False

6. Disparate treatment involves treating one group of consumers differently from others, based on whether or not they are qualified for a loan.

True

False

7. The process of securitization includes collecting loans with similar credit risks, loan terms, and other comparable features into a “pool” and selling an interest in this pool to investors as mortgage-backed securities.
	False
	True

7. The process of securitization includes collecting loans with similar credit risks, loan terms, and other comparable features into a “pool” and selling an interest in this pool to investors as mortgage-backed securities.

False

True

8. The protected classes, or those individuals or groups of individuals who will receive protection under the Fair Housing Act, are identical to those established under ECOA.
	False
	True

8. The protected classes, or those individuals or groups of individuals who will receive protection under the Fair Housing Act, are identical to those established under ECOA.

False

True

9. The Fair Housing Act provisions that prohibit discrimination based on familial status also apply to qualified senior housing.
	False
	True

9. The Fair Housing Act provisions that prohibit discrimination based on familial status also apply to qualified senior housing.

False

True

10. Even though the Fair Housing Act does not expressly include sexual orientation or gender identity as protected classes, discrimination against LGBT individuals is arguably discrimination based on sex and in violation of the existing law.
	False
	True

10. Even though the Fair Housing Act does not expressly include sexual orientation or gender identity as protected classes, discrimination against LGBT individuals is arguably discrimination based on sex and in violation of the existing law.

False

True

1. A class that the Fair Housing Act expressly names as a protected class and that ECOA does not expressly name as a protected class is:
	Religion
	Color
	Handicap
	Sex

1. A class that the Fair Housing Act expressly names as a protected class and that ECOA does not expressly name as a protected class is:

Religion

Color

Handicap

Sex

2. HUD’s new fair housing policy prohibits an assessment of eligibility for an FHA-insured loan that is based on a consideration of:
	Race
	National origin
	Handicap
	Marital status

2. HUD’s new fair housing policy prohibits an assessment of eligibility for an FHA-insured loan that is based on a consideration of:

Race

National origin

Handicap

Marital status

3. HUD has a new policy that seeks to ensure the availability of HUD lending and housing programs without consideration of particular personal characteristics. All but which of the following is a personal characteristic that is protected under the new policy?
	Marital status
	Gender identity
	Sexual orientation
	Political party affiliation

3. HUD has a new policy that seeks to ensure the availability of HUD lending and housing programs without consideration of particular personal characteristics. All but which of the following is a personal characteristic that is protected under the new policy?

Marital status

Gender identity

Sexual orientation

Political party affiliation

4. The Fair Housing Act provisions that prohibit discrimination based on familial status do not apply to:
	Mortgage brokers
	Qualified senior housing
	HUD housing
	Lenders

4. The Fair Housing Act provisions that prohibit discrimination based on familial status do not apply to:

Mortgage brokers

Qualified senior housing

HUD housing

Lenders

5. A conciliation agreement cannot be finalized without the signature of:
	The CFPB Director
	A judge in a federal court in the district where the discrimination allegedly occurred
	An administrative law judge
	HUD’s Assistant Secretary

5. A conciliation agreement cannot be finalized without the signature of:

The CFPB Director

A judge in a federal court in the district where the discrimination allegedly occurred

An administrative law judge

HUD’s Assistant Secretary

an employer refuses to promote an employee because of information contained in a consumer report, what does the Fair Credit Reporting Act require of the employer?

	That it send notice of the decision not to promote to the consumer reporting agency
	Nothing is required because FCRA does not apply to decisions to promote
X	That it give the employee a copy of the report
	That it provide the employee with reasons for the decision not to hire him or her

Consumer reporting agencies are not allowed to give an entity asking for a report a record of inquiries in connection with a credit or insurance transaction not initiated by a consumer. However, consumer reporting agencies are allowed, upon request, to disclose to a consumer a record of all inquiries received by the reporting agency within the one-year period prior to a consumer’s request that identified the consumer in connection with a credit or insurance transaction not initiated by the consumer (15 U.S.C. §1681g).

report provided in a credit or insurance transaction may contain the following pieces of information, except:

An identifying number used to identify the consumer The consumer’s name The consumer’s address X The consumer’s Social Security number

FCRA gives consumers the right to prevent a consumer report from being provided in connection with a credit or insurance transaction that they did not initiate (15 U.S.C. §1681b(e)). To get on the do-not-send list, a consumer has two options. First, the consumer can use the notification system that the consumer reporting agency uses (FCRA requires that all consumer reporting agencies establish a notification system, which could be as simple as a toll-free telephone number).
provisions of this subsection alter, affect, or supersede the applicability of any other provisions of federal law relating to medical confidentiality.

Which of the following accurately states the rule for sharing information about medical treatment histories?

X Only consumer consent is required in an insurance situation, but more is required for an employment or credit transaction The information cannot be shared even where the consumer consents Only consumer consent is required in a credit situation, but more is required for an insurance or employment situation Only consumer consent is required in an employment situation, but more is required for an insurance or credit transaction

That it send notice of the decision not to promote to the consumer reporting agency

Nothing is required because FCRA does not apply to decisions to promote

X

That it give the employee a copy of the report

That it provide the employee with reasons for the decision not to hire him or her

report provided in a credit or insurance transaction may contain the following pieces of information, except:

	An identifying number used to identify the consumer
	The consumer’s name
	The consumer’s address
X	The consumer’s Social Security number

An identifying number used to identify the consumer

The consumer’s name

The consumer’s address

X

The consumer’s Social Security number

Which of the following accurately states the rule for sharing information about medical treatment histories?

X	Only consumer consent is required in an insurance situation, but more is required for an employment or credit transaction
	The information cannot be shared even where the consumer consents
	Only consumer consent is required in a credit situation, but more is required for an insurance or employment situation
	Only consumer consent is required in an employment situation, but more is required for an insurance or credit transaction

X

Only consumer consent is required in an insurance situation, but more is required for an employment or credit transaction

The information cannot be shared even where the consumer consents

Only consumer consent is required in a credit situation, but more is required for an insurance or employment situation

Only consumer consent is required in an employment situation, but more is required for an insurance or credit transaction



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