Finance
Under the Equal Credit Opportunity Act (ECOA), a Wisconsin lender who denies a loan application must:
AProvide a verbal explanation only
BProvide written notice of the adverse action, including the specific reasons for the denial, within 30 days✓ Correct
COnly provide the reason if the applicant requests it in writing
DRefer the applicant to another lender
Explanation
ECOA requires lenders to provide applicants with written notice of adverse action (denial or counter-offer) within 30 days, including the specific reasons for the adverse action.
People Also Study
Related Wisconsin Questions
- A Wisconsin homebuyer's loan estimate under TRID must be delivered within how many business days of application?Finance
- Regulation B under ECOA requires lenders to notify applicants of credit decisions within:Finance
- In Wisconsin, TRID requires lenders to provide the Loan Estimate form to replace the former:Escrow & Title
- Which federal law requires lenders to provide borrowers with a Loan Estimate within 3 business days of application?Finance
- The Equal Credit Opportunity Act (ECOA) prohibits Wisconsin lenders from discriminating based on:Finance
- Under Wisconsin law, a landlord who fails to return a security deposit within 21 days without a written itemization may be liable for:Property Management
- Under Wisconsin law, a landlord must provide a tenant with written notice of building code violations that exist at the time of rental. This is required by:Property Management
- The Equal Credit Opportunity Act (ECOA) prohibits discrimination in lending based on all of the following EXCEPT:Fair Housing
Key Terms to Know
Pre-Approval
A lender's conditional commitment to loan a specific amount to a borrower, based on verified income, credit, and assets.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Study This Topic
Practice More Wisconsin Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Wisconsin Quiz →