ECOA / Regulation B: Understanding Obligations for All Loans

Date Recorded: June 13, 2024
Presented by: Kylee Durbin, CRCM, Manager, Forvis Mazars, LLP

A two-hour webinar focusing on ECOA/Regulation B requirements that apply to every credit transaction – including business/commercial and agricultural loans!

The Equal Credit Opportunity Act and its implementing regulation, Regulation B, provide one of the cornerstones to federal fair lending law: creditors cannot discriminate on the prohibited bases in any part of a lending transaction.  As discrimination has occurred in consistent ways over the years, Regulation B includes a number of specific requirements which are designed to further prevent discrimination in the lending process – provisions regarding what information a creditor can request, how to evidence joint applications, use of spousal guarantees, notifications within 30 days, providing an appraisal notice and copy of the appraisal, as well as others.  Almost all of these requirements apply equally to all loans, regardless of the loan’s purpose.

Institutions continue to have issues with these fundamental provisions, and, while these provisions have not changed recently, examiners and auditors are more likely to find violations of the rules they believe institutions should already be knowledgeable and compliant.  Therefore, it is vitally important for institutions to understand and conform their practices to the rule.

This webinar will focus on all of Regulation B’s rules that are in addition to the basic prohibition against discrimination and is recommended for compliance officers, auditors, loan officers, and loan processors.

HERE IS WHAT YOU WILL LEARN:

• Definitions, including what is an adverse action and application (which is different from TRID’s definition)
• Joint intent
• What information creditors can ask for during the application process and how certain information must be asked
• What notification means and timing requirements, including the Adverse Action notice
• Government monitoring information
• Appraisal notice and copies
• Signature rules
• Spousal guaranties (including a discussion regarding contradictory court decisions)