1. EQUAL CREDIT OPPORTUNITY ACT

2.  Applies to both consumer and non-consumer credit  Prohibits discrimination on a prohibited basis regarding any aspect of a credit transaction, including:  Application procedures (including discouraging applications)  Information requirements  Investigation procedures  Standards of creditworthiness  Terms of credit  Furnishing of credit  Administration of credit accounts  Treatment of delinquent or slow accounts  Collections SCOPE

3.  Prohibits both intentional and unintentional discrimination.  Violation can occur without a conscious intent to discriminate. TYPES OF DISCRIMINATION

4.  A practice is discriminatory if:  It constitutes disparate treatment or has a disparate impact on protected groups AND  The credit union lacks a legitimate nondiscriminatory reason for its action, or the asserted reason is found to be a pretext for discrimination.  Three types of discrimination:  Overt Discrimination  Disparate Treatment  Disparate Impact TYPES OF DISCRIMINATION

5.  Sex  Marital status  Race  Color  National origin  Age  The receipt of protected income  Exercise of legal rights under the consumer credit laws  Religion PROTECTED CLASSES

6.  Sex  Marital Status  Spousal Information  Childbearing Intentions or Capabilities  Race, Religion or National Origin  Age  Income  Credit History  Monitoring Information LIMITS ON INFORMATION

7.  May not require the signature of an applicant’s spouse or any other person on a credit instrument where an applicant qualifies by him or herself  May require the signature of a joint owner only on the instrument that enables you to reach the property in the event the applicant dies or is in default on the loan.  May request a co-signer or a guarantor, but you cannot dictate who that person is. SIGNATURE RULES

8.  Loan applicants must affirmatively indicate their desire for joint credit at the time of application.  Signatures on a promissory note may not be used to show intent to apply for joint credit.  Signatures or initials on a credit application affirming applicants’ intent to apply for joint credit may be used to establish intent to apply for joint credit.  The method used to establish intent must be distinct from the means used by individuals to affirm the accuracy of information.  “Safe Harbor” model forms are available in Appendix B to Reg B. JOINT INTENT

9.  Timing  Disposition:  Incomplete Application  Approval  Counteroffer  Withdrawal  Denial NOTIFICATION OF ACTION TAKEN

10.  Must be in writing  Given to at least the primary applicant  Must contain the following items as applicable:  A statement of the action taken.  The name and address of the credit union.  A statement of the ECOA nondiscrimination requirements  The address for NCUA.  Reasons for adverse action  Can be combined with FCRA notice ADVERSE ACTION NOTICE

11.  May deliver Regulation B disclosures to consumers in electronic form, subject E-Sign rules.  Certain disclosures must be provided with an on-line application  Disclosures required on the application (for example, voluntary income disclosures) do not have to conform to ESIGN. E-SIGN

12.  Applicants have a right to their appraisals  Notification of the right is required  Provide appraisals upon request  Special Rules for Federal Credit Unions APPRAISALS

13.  Hint..... 25 months RECORD RETENTION REQUIREMENTS

14.  Voluntary  Privileged  Self-corrective action is required  Exceptions apply... of course. SELF-TESTING