Does Reg B forbids lenders from considering an applicant’s immigration status?

Does Reg B forbid immigration status?

Citizenship status is not a “prohibited basis” under the ECOA and Reg. B. … If a bank singled out specific nations, it would be vulnerable to allegations that it was engaged in discrimination based on national origin, which is a prohibited basis under ECOA.

Can a lender consider an applicants immigration status?

CFR § 1002.6(b)(7)

A creditor may consider the applicant’s immigration status or status as a permanent resident of the United States, and any additional information that may be necessary to ascertain the creditor’s rights and remedies regarding repayment.

What are the 9 prohibited bases of Regulation B?

Question: What does “prohibited basis” mean in the Equal Credit Opportunity Act (ECOA)? … There are nine prohibited factors under the ECOA. Most people are familiar with seven of them: gender, race, color, religion, national origin, marital status and age.

Can a creditor ask about immigration status?

A creditor such as a lender or dealer cannot discriminate on the basis of national origin. However, a lender or dealer may ask about your permanent residency and immigration status.

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What does Reg B apply to?

Understanding Regulation B (Reg B)

Regulation B covers the actions of a creditor before, during, and after a credit transaction. The CFPB lists credit transactions and aspects of credit transactions to include consumer credit, business credit, mortgage, and open-end credit.

Can lenders discriminate based on immigration status?

consider your sex, race, or national origin, although you will be asked to disclose this information voluntarily to help federal agencies enforce anti-discrimination laws. However, a creditor may consider your immigration status and whether you have the right to remain in the country long enough to repay the debt.

When can a creditor ask about an applicant’s marital status?

When a request for credit is joint (made by two or more individuals who will be primarily liable), the creditor may ask the applicant’s marital status, regardless of whether the credit is to be secured or unsecured, but may use only the terms “married,” “unmarried,” and “separated.” This requirement applies to oral as …

What is a Reg B notice?

Regulation B prohibits creditors from requesting and collecting specific personal information about an applicant that has no bearing on the applicant’s ability or willingness to repay the credit requested and could be used to discriminate against the applicant.

Is Reg B part of fair lending?

The Consumer Financial Protection Bureau’s Regulation B, found at 12 CFR part 1002, implements the ECOA. Regulation B describes lending acts and practices that are specifically prohibited, permitted, or required.

What triggers Reg B appraisal rules?

In general, the revisions to Regulation B require creditors to provide to applicants free copies of all appraisals and other written valuations developed in connection with an application for a loan to be secured by a first lien on a dwelling, and require creditors to notify applicants in writing that copies of …

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Which of the following federal agencies is responsible for the enforcement of Regulation B?

§ 1691 et seq. , which is implemented by Regulation B (12 CFR Part 1002 ), applies to all creditors, including credit unions. When originally enacted, ECOA gave the Federal Reserve Board responsibility for prescribing the implementing regulation.

Does Reg B only apply to personal loans?

The Equal Credit Opportunity Act and Regulation B apply to all credit–commercial as well as personal-without regard to the nature or type of the credit or the creditor, except for an entity excluded from coverage of this part (but not the Act) by section 1029 of the Consumer Financial Protection Act of 2010 (12 U.S.C.