Podcast
Questions and Answers
According to Regulation B, who can be deemed a “Creditor” under the Equal Credit Opportunity Act (ECOA)?
According to Regulation B, who can be deemed a “Creditor” under the Equal Credit Opportunity Act (ECOA)?
- A person who has knowledge of a violation after becoming involved in the credit transaction
- A person who refers applicants to creditors
- A person who regularly participates in a credit decision and sets the terms of the credit (correct)
- A person who honors a credit card in a credit transaction
When is a person not considered a “Creditor” regarding any violation of ECOA committed by another “Creditor”?
When is a person not considered a “Creditor” regarding any violation of ECOA committed by another “Creditor”?
- When the person is not directly involved in the credit transaction
- When the person reports the violation to the appropriate Federal agency
- When the person knew or had reasonable notice of the act, policy, or practice that constituted the violation before becoming involved in the credit transaction (correct)
- When the person is an affiliate of the original creditor
What should FDIC examiners do if an affiliate is deemed to be an Institution-Affiliated Party (IAP)?
What should FDIC examiners do if an affiliate is deemed to be an Institution-Affiliated Party (IAP)?
- Refer the case to the appropriate Federal agency with primary enforcement responsibility
- Enter the violation in FOCUS for further investigation
- Cite the violation in the Report of Examination (ROE) and consider enforcement action against the IAP directly (correct)
- Include appropriate comments on the Examiner’s Comments page of the ROE
What does Section 10(b)(5)(B) of the FDI Act require FDIC examiners to do?
What does Section 10(b)(5)(B) of the FDI Act require FDIC examiners to do?
What should be included in situations where an affiliate is not an Institution-Affiliated Party (IAP)?
What should be included in situations where an affiliate is not an Institution-Affiliated Party (IAP)?
What does Regulation B state regarding a person whose only participation in a credit transaction involves honoring a credit card?
What does Regulation B state regarding a person whose only participation in a credit transaction involves honoring a credit card?
Which documents are required to show the relationship between the holding company, the bank, and the affiliate?
Which documents are required to show the relationship between the holding company, the bank, and the affiliate?
In cases of potential fair lending violation by an affiliate not deemed an IAP, who must determine if the bank is liable?
In cases of potential fair lending violation by an affiliate not deemed an IAP, who must determine if the bank is liable?
What must be sent to both the bank and the affiliate if a 15-day letter is appropriate due to a review finding a violation?
What must be sent to both the bank and the affiliate if a 15-day letter is appropriate due to a review finding a violation?
What is required to determine the bank's potential liability for loans originated by the affiliate?
What is required to determine the bank's potential liability for loans originated by the affiliate?
What type of agreements should reflect shared source of funding between entities?
What type of agreements should reflect shared source of funding between entities?
What is necessary to understand how the relationship between the two entities works in practice?
What is necessary to understand how the relationship between the two entities works in practice?
In addition to organizational charts, what else is needed to show the relationship between the holding company, bank, and affiliate?
In addition to organizational charts, what else is needed to show the relationship between the holding company, bank, and affiliate?
If a violation has occurred at an affiliate, who should be informed if a 15-day letter is appropriate?
If a violation has occurred at an affiliate, who should be informed if a 15-day letter is appropriate?
