ECOA & TILA

credit for business, commercial, argricultural as well

• 1974
• -$10,000 for individual actions
• -lesser of $500,000 or 1% of creditors net worth

creditor's refusal to offer credit in the amount or according to the terms requested by a loan applicant

• Notice of Action Taken
• Notice of Incomplete Application
• Valuation Disclosures
• Disclosures Regarding Monitoring Programs

within 30 days of receipt of a loan or credit application. If creditor takes adverse action, must give reason.

Within 30 days of receipt of an application that lacks information.

• within three days of receipt of loan application
• right to receive a copy of all written appraisals
• copy of all appraisals

advise applicants that obtaining info on rate, ethnicity, sex, etc is requested by the federal government

refusal to offer credit in particular neighborhoods due to race or any reason

treating people differently

When a creditor adopts a policy that discriminates or limits certain people

• questions that may define someone as a member of a protected class
• exceptions: immigration status, determine eligibility for a special program, necessary data collection requirements

Can't discourage prospects from applying for a loan

• refuse to consider public assistance as income
• assume a pregnant woman will stop working to raise child
• refuse to consider income from pension, annuity, or retirement benefit
• refuse to consider child support or alimony

• protect consumers by disclosing the costs and terms of credit
• create uniform standards for stating the cost of credit
• ensure that advertising for credit is truthful and not misleading
• provide borrowers with the right to rescind certain types of mortgages

Lender disburses all of the funds at closing and demands repayment within a specified period of time

both the borrower and lender anticipate repeat transactions. A lender gives the borrower a limit on the amount of funds they can withdraw, and the borrower can request a cash advance in any amount

• consumers name
• SSN (used to obtain credit report)
• Income
• Address of the property
• Estimate of the value of the property
• Loan amount sought

the time that a consumer becomes contractually obligated on a credit transaction

the cost of credit as a dollar amount

measure of the cost of credit in addition to the interest rate, expressed as a yearly rate

• Includes:
• fees paid to third parties if the creditor requires the use of a particular third party.
• charges for credit life, disability, employment insurance, or other optional insurance.
• Excludes
• any fees of the type that are payable in a comparable cash transaction, such as taxes.

fees charged by the closing agent are included in the finance charge if the creditor requires these services

mortgage broker's fees are always included in the finance charge

• PMI or MIP
• discount points and mortgage broker fees
• origination fees
• processing fees
• underwriting fees

• title fees
• escrow fees
• notary fees
• appraisal and credit report fees
• document preparation fees

• summaries of loan costs and lending terms
• warnings related to the inherent risks of adjustable interest rates
• advance notice of rate changes that will impact future payments

• due no later than three business days after application, includes:
• Loan Program Disclosures
• Post-Consummation Disclosures for ARMs

• Due at least 60, but no more than 120 days before first payment is due, includes:
• date that current interest rate will change
• reminder of when future interest rate adjustments are scheduled to occur
• description of other changes to the loan
• a table showing it all
• explanation of how interest rate is determined
• description of any limits on rate increase
• info on negative amortization and prepayment penalties

• these open-end transactions have a separate set of disclosure requirements.
• retention of disclosure
• availability of disclosed terms
• risk of losing home
• possibility of unfavorable actions by the creditor

• legal remedy that voids a contract between two parties
• three business day rescission period
• three year rescission period (if they didn't receive original notice)

must be made to each party with an ownership interest in the principal dwelling

• finance charge
• other charges, late payment charges, title, appraisal, and credit report fees
• taxes imposed on the credit transaction
• payment terms of the home equity plan

• any loan fee that is a percentage of the credit limit
• an estimate, stated as a dollar amount, of any fee to open the plan
• any periodic rate used to compute the finance charge
• the maximum APR that may be imposed under a variable-rate plan

• amount or percentage of any down payment
• number of payments or the period of the repayment
• payment amounts
• the finance charge

• the amount or percentage of the down payment
• the terms of repayment over the full term of the loan
• the APR and whether the rate may increase after consummation

• Criminal Liability
• Civil Liability