What are the long term effects of blockbusting?
One of the long-term consequences of blockbusting was the onset of white flight and increased demand for white-only suburbs. As more black residents moved into areas, fleeing white residents looked to relocate to suburbs far from the “blighted” neighborhoods of inner cities.
What are the effects of residential segregation?
The effects of residential segregation are often stark: blacks and Hispanics who live in highly segregated and isolated neighborhoods have lower housing quality, higher concentrations of poverty, and less access to good jobs and education.
What is a predatory mortgage loan?
Predatory lending is any practice of a lender that imposes unfair and abusive loan terms on borrowers, including high interest rates, high fees, and terms that strip the borrower of equity. Predatory lenders often use aggressive sales tactics and deception to get borrowers to take on loans they can’t afford.
Who does fair lending laws apply to?
7 Specifically, the ECOA prohibits dis- crimination in all personal and commercial credit transactions based on race, color, religion, national origin, sex, marital status, age, and other bases. 8 The prohibitions apply to anyone regularly extending credit or arranging for the extension of credit.
What does fair lending mean?
fair and uniform services
What is the 30 day ECOA rule?
A creditor must notify an applicant of action taken on the applicant’s request for credit, whether favorable or adverse, within 30 days after receiving a completed application.
What is the key to fair lending?
The federal Fair Housing Act makes it unlawful to discriminate in the sale, rental, or financing of homes because of race, color, national origin, religion, sex, familial status, or disability.
What is Regulation Z?
Regulation Z is a federal law that standardizes how lenders convey the cost of borrowing to consumers. It also restricts certain lending practices and protects consumers from misleading lending practices.
Why was ECOA created?
The Equal Credit Opportunity Act (ECOA) is a law created by the U.S. government with the aim of giving all individuals an equal opportunity to obtain loans and other types of credit from financial institutions and other lenders.
How do you establish proof of disparate impact?
To establish an adverse disparate impact, the investigating agency must (1) identify the specific policy or practice at issue; (2) establish adversity/harm; (3) establish significant disparity; [9] and (4) establish causation.
Can banks discriminate?
Under the Equal Credit Opportunity Act (“ECOA”), a creditor may not discriminate against an applicant based on the applicant’s race, color, or national origin “with respect to any aspect of a credit transaction”, 15 U.S.C. § 1991.
What is the Regulation B?
Regulation B prohibits creditors from requesting and collecting specific personal information about an applicant that has no bearing on the applicant’s ability or willingness to repay the credit requested and could be used to discriminate against the applicant.
Who does Regulation B apply?
The Equal Credit Opportunity Act (ECOA), 15 U.S.C. § 1691 et seq. , which is implemented by Regulation B (12 CFR Part 1002 ), applies to all creditors, including credit unions. When originally enacted, ECOA gave the Federal Reserve Board responsibility for prescribing the implementing regulation.
What does an adverse action notice include?
An adverse action notice is to inform you that you have been denied credit, employment, insurance, or other benefits based on information in a credit report. The notice should indicate which credit reporting agency was used, and how to contact them.
Does Regulation B apply to credit cards?
The Equal Credit Opportunity Act and Regulation B apply to all credit–commercial as well as personal-without regard to the nature or type of the credit or the creditor, except for an entity excluded from coverage of this part (but not the Act) by section 1029 of the Consumer Financial Protection Act of 2010 (12 U.S.C.
What is Reg Z in banking?
TILA promotes the informed use of consumer credit by requiring timely disclosure about its costs. It also includes substantive provisions such as the consumer’s right of rescission on certain mortgage loans and timely resolution of billing disputes.
Does Regulation B apply to corporations?
The Equal Credit Opportunity Act (ECOA) prohibits discrimination in any aspect of a credit transaction. It applies to any extension of credit, including extensions of credit to small businesses, corporations, partnerships, and trusts. The CFPB’s Regulation B, found at 12 CFR Part 1002, implements ECOA.
Which is superior law or regulation?
Laws are also rules that govern everyone equally, while regulations only effect those who deal directly with the agency who is enforcing them. In other words, a law can govern the action of both the DEP and the FBI, but the DEP cannot write regulations that would be enforceable to the FBI.