Topic: Equal Credit Opportunity Act (ECOA)
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Where do we send the FCRA/ECOA adverse notice if the applicant is a business and we also pull credit reports for the individual business owners? Are there any privacy concerns for co-applicants who receive another co-applicant’s information on an adverse action notice?
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We recommend sending a combined ECOA/FCRA adverse action notice to the primary applicant, which in this case would be the business itself. In addition, we recommend sending FCRA adverse action notices to any individuals whose consumer credit reports you pulled, such as co-applicants, guarantors, and the business owners. Under the Equal Credit Opportunity Act (ECOA)…
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Do the new ECOA appraisal rules apply to business applicants?
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Yes, the new ECOA appraisal requirements apply to commercial loan applicants, provided that the loan will be secured by a first lien on a dwelling. The requirement to provide a copy of all appraisals or written valuations applies to any application for credit to be secured by a first lien on a dwelling, “whether the…
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Are there any Illinois or federal compliance requirements that apply to commercial leases, besides the ECOA and FCRA adverse action notices? Our institution will be leasing out equipment that is owned by the bank.
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As a general rule, most compliance laws and regulations are aimed at protecting consumers and not commercial customers. For example, while Regulation M governs disclosures, advertising and other issues related to leases, it expressly states that it applies only to consumer leases. 12 CFR 1013.1(b). However, a few laws might apply to your commercial leases…