#Equal credit opportunity free

What Types of Loans are Covered by the Rule? You must follow the ECOA Valuations Rule for mortgage loan applications received on or after January 18, 2014.

#Equal credit opportunity free

The Dodd-Frank Act and ECOA Valuations rule require creditors to disclose to applicants that they have the right to receive copies of appraisals and written valuations and automatically send a free copy of home appraisals and other written valuations promptly after they are completed, regardless of whether credit is extended, denied, incomplete, or withdrawn. The Dodd-Frank Act changed these requirements and did not include an exemption for federally insured credit unions. The nondiscrimination regulation also required the appraisal be available for 25 months after the applicant received notice from the federal credit union of the action taken on the real estate-related loan application. Although federally insured credit unions were provided an exemption from these requirements, NCUA’s nondiscrimination regulation required federal credit unions make available, to any requesting member/applicant, a copy of the appraisal used in connection with that member’s real estate-related loan application. 3 ECOA applies to consumer credit as well as to business and commercial credit except as provided in Regulation B.īefore the new ECOA Valuations Rule, Regulation B required that creditors provide copies of appraisals to applicants upon request and notify them of their right to make a request. 2 CFPB also developed a Small Entity Compliance Guide for the rule, which is embedded as a hyperlink above.ĮCOA and its implementing rule (known as Regulation B) prohibit creditors from discriminating on the basis of race, color, religion, national origin, sex, marital status, or age (provided that the applicant has the capacity to contract), or because all or part of an applicant’s income derives from public assistance, or because the applicant has in good faith exercised rights under certain credit laws, including the Truth in Lending Act (TILA). The Consumer Financial Protection Bureau (CFPB) issued a final ECOA Valuations Rule to implement these new requirements. These procedures are required by the Dodd-Frank Wall Street Reform and Consumer Protection Act’s (the Dodd-Frank Act) amendment of the Equal Credit Opportunity Act (ECOA). Provide a free copy of these appraisals and written valuations developed in connection with the loan application, promptly after they are completed, or three days before the loan closes, (whichever is earlier) regardless of whether the credit is extended, denied, incomplete, or withdrawn.

Notify applicants in writing within three days of receiving the application that they have the right to receive copies of all appraisals and written valuations and.

If your credit union receives an application on or after January 18, 2014, for a first-lien loan to be secured by a dwelling, you must: Dear Board of Directors and Chief Executive Officer: