Regulation B Flashcards
(13 cards)
Which phase of the credit transaction does Reg B apply to?
Every aspect, without exception, including collections.
Can a creditor solicit or encourage members of traditionally disadvantaged groups to apply for credit?
Yes
Can an application be oral?
Yes, except for applications for loans to purchase or refinance a principle dwelling and secured by the dwelling.
When does an inquiry become an application?
When the creditor evaluates information and decides to grant or decline the credit and communicates that decision to the person inquiring.
Are preapprovals considered applications?
Yes
When is an application considered completed?
An application for which the bank has received all the information it regularly obtains and considers in evaluating the amount and type of credit requested, including credit reports, verifications, and so forth.
For what type of credit must a creditor request monitoring information?
When a request for credit is primarily for the purpose of purchasing or refinancing of a dwelling used as their primary residence, and the loan is secured by that residence.
When monitoring information is to be requested, what information does that include?
Ethnicity
Race
Sex
Marital Status
Age
What is the timing requirement for when an appraisal or valuation must be provided?
Promptly upon completion or within three business days prior to consummation, whichever is earlier (for closed-end credit) or account opening (for open-end credit).
If an applicant wants to waive the timing requirement to receive an appraisal or valuation, what is the timing requirement?
Must be received at least three business days prior to consummation except for clerical changes to a previous version of an appraisal or valuation that was provided at least three business days prior to consummation.
If the account is not consummated the creditor must provide the copies no later than 30 days after the creditor determines that consummation will not occur.
For credit that is to be secured by a first lien on a dwelling, how soon must a creditor mail or deliver to an applicant a written notice of the applicant’s right to receive a copy of all written appraisals developed in connection with the application.
Not later than the third business day after the creditor receives an application for credit, or makes the determination that it will be secured by a first lien on a dwelling.
Can a creditor charge for providing copies of appraisals and valuations?
May not charge for copies, but may charge the reasonable cost of obtaining.
What are the record retention requirements for Reg B
25 months for almost everything
12 months for businesses $1 million or less - credit applications
60 days for businesses over $1 million, unless they request specific reasons for actions taken, in which case it’s 12 months - credit applications and documentation
