Finance
Which federal law requires lenders to inform applicants when adverse action is taken on their credit application, stating the reasons?
ATruth in Lending Act (TILA)
BEqual Credit Opportunity Act (ECOA)✓ Correct
CFair Credit Reporting Act (FCRA)
DCommunity Reinvestment Act (CRA)
Explanation
The Equal Credit Opportunity Act (ECOA) requires lenders to notify applicants when adverse action is taken (such as denial) and provide the specific reasons for the adverse action, allowing applicants to understand and address issues.
Related Rhode Island Finance Questions
- What is 'amortization schedule' in the context of a Rhode Island mortgage?
- What is the Rhode Island Realty Transfer Tax rate?
- What is the purpose of 'private mortgage insurance' (PMI) cancellation rights under the Homeowners Protection Act?
- An adjustable-rate mortgage (ARM) has a 2/6 cap structure. This means:
- In Rhode Island, foreclosure proceedings are primarily:
- A lender who charges more than the legal maximum interest rate is guilty of:
- A home equity line of credit (HELOC) is best described as:
- The Home Mortgage Disclosure Act (HMDA) requires lenders to:
Practice More Rhode Island Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Rhode Island Quiz →