Real Estate Trainers, Practice Exam #6 questions with complete solutions

1) The purpose of the Equal Credit Opportunity Act (ECOA) is which of the following: A. To protect the credit history of consumers. B. To minimize discrimination in the obtaining of credit. C. To ensure that all consumers have an equal opportunity to obtain credit. D. To help consumers fight the growing crime of identity theft. correct answer: C.This is the purpose of ECOA. 2) ECOA is also known as which of the following: A. Regulation B. B. Regulation C. C. Regulation X. D. Regulation Z. correct answer: A. Remember "BECOA." 3) ECOA is enforced by which federal agency: A. FBI. B. CFPB. C. HUD. D. FRB. correct answer: B. Yes, ECOA is implemented by the Consumer Financial Protection Bureau, but each financial institution falls under the authority of its respective regulatory agency. 4) All of the following are true statements about ECOA, except: A. It was originally passed in 1969 to prohibit lending discrimination on the basis of sex or marital status. B. It requires credit bureaus to maintain separate credit files on married spouses, if requested. C. It applies to any creditor who regularly extends credit, and mortgage brokers who arrange financing. D. It allows credit applicants to file discrimination complaints or bring a civil lawsuit for alleged discrimination. correct answer: A. ECOA was actually passed in 1974. The balance of the statement is true. 5) According to ECOA, which of the following is an MLO prohibited from doing: A. Telling a loan applicant that he does not qualify for a loan. B. Submitting a loan application to a lender when he/she doesn't believe the applicant will be approved. C. Discouraging a potential borrower from applying for a loan based on their membership in a protected class.