Table of Contents
What is covered by regulation B?
Regulation B covers the actions of a creditor before, during, and after a credit transaction. The CFPB lists credit transactions and aspects of credit transactions to include consumer credit, business credit, mortgage, and open-end credit.
What is Reg B compliance?
Reg B outlines the rules that lenders must adhere to when obtaining and processing credit information. The regulation prohibits lenders from discriminating based on age, gender, ethnicity, nationality, or marital status. 1
What is considered an application under Reg B?
The Equal Credit Opportunity Act (ECOA) via Regulation B Section 202.2 defines application as follows: “Application means an oral or written request for an extension of credit that is made in accordance with procedures established by a creditor for the type of credit requested.
What transactions does Reg B cover?
Does Reg B apply to HELOCs?
This does not apply to HELOCs.
Which three regulations support fair lending practices?
Fair Lending Laws
- Equal Credit Opportunity Act (ECOA) This law affects every phase of the lending process and prohibits discrimination on the basis of:
- Fair Housing Act (FHA)
- Americans With Disabilities Act (ADA)
- Civil Rights Act of 1866.
- Home Mortgage Disclosure Act (HMDA)
What is Regulation B (reg B)?
What Is Regulation B (Reg B)? Regulation B is intended to prevent applicants from being discriminated against in any aspect of a credit transaction. Reg B outlines the rules that lenders must adhere to when obtaining and processing credit information.
Are lenders required to comply with Regulation B?
All lenders are required to comply with Regulation B when extending credit to borrowers. Regulation B implements the Equal Credit Opportunity Act (ECOA) which is regulated and enforced by the Consumer Financial Protection Bureau (CFPB).
What is reg B of the CFPB?
Regulation B covers the actions of a creditor before, during, and after a credit transaction. The CFPB lists credit transactions and aspects of credit transactions to include consumer credit, business credit, mortgage, and open-end credit.
What is Regulation B of the Consumer Credit Act?
The regulation prohibits lenders from discriminating based on age, gender, ethnicity, nationality, or marital status. 1 All lenders are required to comply with Regulation B, which protects applicants from discrimination. Creditors that fail to comply with Regulation B are subject to punitive damages.