ECOA, HMDA, FCRA, Privacy and Fair Lending
This topic covers ECOA/Reg B, adverse action, HMDA data, credit reporting, privacy, telemarketing, Do-Not-Call, and fair-lending conduct.
How to study for the SAFE MLO test
Treat each item as a compliance workflow: identify the law, the mortgage process step, the borrower data, and the required ethical action.
Core concepts
Concept 1
ECOA prohibits discrimination in credit and controls adverse-action notice duties.
Exam cue: If the borrower is denied or terms change, look for adverse-action timing.
Concept 2
HMDA, FCRA, and privacy rules govern data, credit reports, and borrower information.
Exam cue: If demographic or application data appears, consider HMDA and fair lending.
Concept 3
Fair-lending questions often turn on prohibited factors, permissible information, and timing.
Exam cue: Credit report and nonpublic information facts trigger FCRA or privacy duties.
Risk pitfalls and guardrails
Using prohibited bases to evaluate creditworthiness.
Guardrail: Avoid answers that hide fees, skip required timing, misuse borrower information, pressure third parties, or turn custom into law.
Ignoring adverse-action notice requirements.
Guardrail: Avoid answers that hide fees, skip required timing, misuse borrower information, pressure third parties, or turn custom into law.
Treating borrower nonpublic personal information as ordinary marketing data.
Guardrail: Avoid answers that hide fees, skip required timing, misuse borrower information, pressure third parties, or turn custom into law.
Memory anchors
ECOA
ECOA prohibits discrimination in credit transactions.
Regulation B
Regulation B implements ECOA and includes adverse-action notice rules.
Adverse Action
Adverse action generally requires timely notice explaining the credit decision.
Protected Factor
Credit decisions cannot use prohibited bases such as race, sex, age, or marital status.
HMDA
HMDA requires reporting of mortgage application and loan data.
FCRA
FCRA governs use, accuracy, and disclosure of consumer credit report information.
Privacy Rule
Privacy rules protect nonpublic personal information.
Do Not Call
Do-Not-Call rules restrict certain telephone solicitations.
PATRIOT Act
Customer identification and suspicious-activity awareness support anti-money-laundering goals.
Fair Lending
Fair lending requires equal, lawful treatment throughout the credit process.
Checkpoint rule
Do the check-up only after you can summarize each concept in one sentence and identify one dangerous pitfall from memory.
Knowledge Check (after reading)
Short check-up to confirm understanding of this module.
Check-up Questions
An applicant receives Social Security disability benefits that are likely to continue. Which treatment is most consistent with ECOA?
A 70-year-old applicant has sufficient income and credit. When may a creditor lawfully consider the applicant's age under Regulation B?
Answer all questions to submit.
Next step personalized recommendations
Continue learning
Move forward only after this module is stable.
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