• Discriminatory lending practices that Congress sought to discourage by adopting ECOA
• The broad scope of ECOA and its implementing regulations, Regulation B
• The complex division of regulatory and enforcement responsibilities between the Consumer Financial Protection Bureau, the federal banking agencies, the Federal Trade Commission, and the Department of Justice
• Requirements that creditors must meet when taking applications from credit applicants and prohibited practices during the credit application process, such as discouragement
• Information that creditors may and may not request about a credit applicant’s spouse and how certain types of credit transactions determine the scope of these limitations
• Prohibited considerations that creditors may not use and assumptions that they may not make when evaluating credit applicants
• Prohibited practices when extending credit
• Exceptions to ECOA prohibitions when extending credit to underserved consumers through special credit programs
• Disclosure and notice requirements
• Incentives that ECOA creates for self-testing to identify and correct discriminatory practices
• The interaction of state and federal laws against discriminatory practices in offering credit to consumers
• In 1974, Congress enacted the Equal Credit Opportunity Act (ECOA) to eliminate discriminatory treatment of credit applicants (15 U.S.C. Section 1691). ECOA is located in Title 15 of the United States Code under Title VII of the Consumer Credit Protection Act. The primary reason for the enactment of ECOA was anecdotal evidence that women were not treated on an equal basis with men when applying for credit. This discriminatory treatment extended to transactions in which women applied for loans to purchase homes. Before ECOA made it illegal for creditors to use discriminatory practices in the extension of credit, women, including those who earned their own incomes or who functioned as the primary breadwinners for their families, could not secure credit without asking their husbands or male relatives to cosign their applications.
One practice that witnesses reported during Congressional hearings that preceded the enactment of ECOA “…was something called ‘income discounting’; that is, when a lender would devalue a woman’s income when she applied for a loan based on the assumption that women were unlikely to remain in the workforce.” [1] Even when married couples completed joint applications for credit, such as applications for home loans, the income of a working wife was devalued or even disregarded unless the couple wrote a “baby letter,” stating that they were incapable of having children or that they were using birth control.
________________________________________
[1] Cyr, Maureen. “Gender, Maternity Leave, and Home Financing: A Critical Analysis of Mortgage Lending Discrimination Against Pregnant Women.” University of Pennsylvania Journal of Law and Social Change. https://www.law.upenn.edu/journals/jlasc/articles/volume15/issue1/Cyr15U.Pa.J.L.&Soc.Change(2011)109.pdf
10/22/2013
10/20/2013
80 Towsend Irvine Open House Today
Woodbury Townhouse for sale Open House Today Irvine 12:30- 4:00 |
82 Townsend, Irvine California
Woodbury Townhouse for Sale
Open House Today 12:30 -4:00
Lowest priced unit in the tract
Priced to sell at $724,900.00
Bank owned, REO, foreclosure
(Needs new carpet but in moderate condition)
Bank owned, REO, foreclosure
(Needs new carpet but in moderate condition)
70 Townsend just sold/ closed on 9/13/2013 for $ 790,000.00
Foreign National Loans available!
Two story spacious unit!
Caroline Gerardo
NMLS #324982
(949) 637-8190 cell
World Famous Blue ribbon schools!
Community Pool
82汤森,加利福尼亚州尔湾
排房出售开放式的房子今天12:30-4:00
在消化道中的最低价格单位
价格出售
70汤森790000美元于2013年9月13日刚刚出售/关。
外国国家助学贷款!
两个华丽的故事在现在的单位招!
Caroline Gerardo (949) 637-8190 cell phone
10/15/2013
Close Your Loan With The Government Shut Down
How
are mortgage lenders dealing with not being able to verify Borrowers income?
Lenders
have traditionally used the 4056T form and submitted to the IRS to verify that
the tax returns a Borrower supplies are actually the same as what was submitted
to the IRS. With Washington still fighting over the budget the IRS has
suspended this service. In fact only auditors and a few essential employees
aren’t home eating bon bons.
One creative work around for loans that don’t have fraud alerts on their
social security numbers (sometimes having duplicate social security number
indicates a Borrower worked under a different number or has poor credit in an
alias) is to verify the payment or refund. Borrowers can provide the actual check for tax payment or refund- if
this is not available a bank statement matching the exact amount on the return
indicates the Federal Tax Return is accurately filed.
After
the government gets back to work, the back log of 4506T verifications will be
processed and added to closed loan files.
This
of course may not work for certain complex returns. Other types of income verification-
perhaps a second verbal verification of employment at closing can double check to be able to close
a purchase money loan or to make a rate lock happen on time.
Certain
loan products such as the USDA are not available, as FDA is totally closed.
The
mortgage business is always pressed for time. The crunch is on now with the shut
down. House Republicans vote today on legislation to step around defaulting on
the national debt and end a two-week-old close of the federal government.
Caroline Gerardo
Eagle Home Mortgage
(949) 637-8190
(949) 784-9699
NMLS #324928
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