If the applicant does not voluntarily provide the information,
the financial institution must make a visual observation or determination by surname to collect the GMI
.
Do you collect GMI on construction loans?
A temporary construction loan
is not subject to the GMI collection requirements
under both Reg. … B and Reg. C.
When should government monitoring information be collected?
Regulation B requires that the lender obtain the government monitoring information from all applicants for
a loan
to purchase or refinance a principal dwelling (other than temporary financings).
Which statement regarding collection of government monitoring information GMI for an application taken entirely by telephone is correct?
Which statement regarding collection of government monitoring information (GMI) for an application taken entirely by telephone is correct? Not answered. The correct answer is b. A
is incorrect
because the Loan section requires information to track the type and dollar amount of loans made.
Can government monitoring information be used in a credit decision?
Government monitoring information may be used in
a credit decision
. Disregarding the income of a working spouse on a joint application is considered to be a sound risk management practice. If a credit application is denied after the application was withdrawn, a notification must still be made.
What types of loans are subject to GMI?
For consumer purpose loans, HMDA will require GMI collection for
all dwelling secured loans
, not just for home purchase loans, home improvement loans, and refinancings (GMI for commercial loans will be limited to home purchase loans, home improvement loans, and refinancings).
What is Reg Z in lending?
Regulation Z
prohibits certain practices relating to payments made to compensate mortgage brokers and other loan originators
. The goal of the amendments is to protect consumers in the mortgage market from unfair practices involving compensation paid to loan originators.
When should you not collect government monitoring information?
On the one hand, Regulation B generally prohibits creditors from collecting information about race, color, religion, national origin, or sex “to discourage discrimination, based on the premise that if
creditors cannot inquire about or note applicants’ personal characteristics
, such as national origin or race, they are …
What are the 9 prohibited bases of Regulation B?
Question: What does “prohibited basis” mean in the Equal Credit Opportunity Act (ECOA)? … There are nine prohibited factors under the ECOA. Most people are familiar with seven of them:
gender, race, color, religion, national origin, marital status and age
.
Which law requires disclosure of all sources of income mortgage?
The Home Mortgage Disclosure Act (HMDA)
requires many financial institutions to maintain, report, and publicly disclose loan-level information about mortgages. … HMDA was originally enacted by Congress in 1975 and is implemented by Regulation C.
What is a Notice of Incomplete Application?
Notice of Incompleteness (NOI) is
a letter from the lender to the loan applicant to request the applicant to provide documentation or information that is needed by the lender to make a credit decision
.
What types of loans are covered under Reg B?
- Consumer credit.
- Business credit.
- Mortgage loans.
- Refinancing.
- Open-end credit.
- Credit applications.
- Standards of creditworthiness.
- Adverse action.
What is the ECOA disclosure?
ECOA Notice is a
disclosure statement that a lender, under certain circumstances, is required to send to a person who requests for an extension of credit
. … ECOA stands for Equal Credit Opportunity Act and is one of the key fair lending and consumer protection legislation.
Is demographic information required for a loan decision?
Borrowers have the right to decline
to provide any or all of the demographic information. However, for loan applications taken in person, the originating financial institution is required collect this information based on visual observation or surname, if the borrower refuses to provide it.
What is a denial of credit called?
An adverse action notice
is a written, electronic, or verbal disclosure creditors must issue to consumers after their credit-based application (a credit card or loan, for example) is denied or they face another negative credit-related action. The purpose of the notice is to communicate the reason for the denial.
When can a creditor ask about an applicant’s marital status?
When a request for credit is joint (made by two or more individuals who will be primarily liable)
, the creditor may ask the applicant’s marital status, regardless of whether the credit is to be secured or unsecured, but may use only the terms “married,” “unmarried,” and “separated.” This requirement applies to oral as …
