Tag Archives: Equal Credit Opportunity Act

Failure to Request and Obtain Required USDA Loan Guarantee Requires ECOA Adverse Action Notice

In the case of Cross v. Prospect Mortgage, LLC, No. 1:12-cv-1455 (E.D. Va., Nov. 27, 2013), a federal district court found that a mortgage lender violated the Equal Credit Opportunity Act (ECOA) when the lender failed to provide the borrower with an “adverse action” notice stating that the lender did not obtain a requested U.S. Department of Agriculture Rural … Continue reading this entry

New Risks for Indirect Lenders

Last month the Consumer Financial Protection Bureau announced that it will start holding banks accountable for the discriminatory actions of indirect auto lenders. The issue arises when a consumer goes to purchase a car and applies for financing right at the dealership. That dealer then takes the loan application and submits it to a bank which either … Continue reading this entry