Fair Housing
A Texas lender denies a mortgage application from a qualified applicant without explanation. The applicant is of Vietnamese descent and has strong credit. Under ECOA, the lender is required to:
AProvide no reason since it is a business decision
BProvide a written notice of adverse action within 30 days, stating the specific reasons for denial✓ Correct
COnly notify the applicant orally
DAllow the applicant to reapply after 6 months
Explanation
The Equal Credit Opportunity Act (ECOA) and Regulation B require creditors to provide applicants with written notice of adverse action (loan denial or other adverse decision) within 30 days, including specific reasons for the denial. This allows applicants to understand and contest potentially discriminatory decisions.
Related Texas Fair Housing Questions
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