Which regulation governs ECOA?

Which regulation governs ECOA?

• A. Reg B
• B. Reg Z
• C. Reg C
• D. Reg X

Answer: (A)

Equal Credit Opportunity Act is implemented through Regulation B. This regulation puts the rules in place that make lending fair by prohibiting discrimination in credit decisions based on protected characteristics, and it requires lenders to base decisions on creditworthiness rather than bias. Regulation B also covers practical protections, such as notifying applicants of the action taken on their credit application within a set timeframe and keeping records to support fair lending compliance, along with rules about advertising credit terms to prevent misleading or discriminatory messaging. The other regulations govern different laws: Regulation Z corresponds to Truth in Lending Act disclosures about loan terms and costs; Regulation C relates to HMDA data collection and reporting; Regulation X covers RESPA disclosures in the home-buying process. So Regulation B is the one that governs ECOA.

Equal Credit Opportunity Act is implemented through Regulation B. This regulation puts the rules in place that make lending fair by prohibiting discrimination in credit decisions based on protected characteristics, and it requires lenders to base decisions on creditworthiness rather than bias. Regulation B also covers practical protections, such as notifying applicants of the action taken on their credit application within a set timeframe and keeping records to support fair lending compliance, along with rules about advertising credit terms to prevent misleading or discriminatory messaging.

The other regulations govern different laws: Regulation Z corresponds to Truth in Lending Act disclosures about loan terms and costs; Regulation C relates to HMDA data collection and reporting; Regulation X covers RESPA disclosures in the home-buying process. So Regulation B is the one that governs ECOA.