Requirements""12 CFR 202.2, 202.4, 202.5, 202.6, and 202.13 say that a creditor may not request information about an application's race, color, religion, national origin, or gender except as specifically permitted by ____________or another statute such as the Home Mortgage Disclosure Act.
Click on the arrows to vote for the correct answer
A. B. C. D.A
The correct answer is A. Regulation B.
Regulation B is a regulation issued by the Federal Reserve System that implements the Equal Credit Opportunity Act (ECOA). The ECOA prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age, or because the applicant receives income from a public assistance program.
The cited CFR sections (12 CFR 202.2, 202.4, 202.5, 202.6, and 202.13) set out specific requirements for creditors in order to prevent discrimination in credit transactions. In particular, these sections prohibit creditors from requesting certain types of information from credit applicants, such as information about their race, color, religion, national origin, or gender, except as specifically permitted by Regulation B or another applicable statute.
Therefore, the correct answer to the question is A. Regulation B. This regulation allows creditors to collect certain types of information for monitoring purposes, such as the applicant's sex or ethnicity, but only if the applicant voluntarily provides such information.
Regulation U is a regulation issued by the Federal Reserve System that governs the extension of credit for the purpose of purchasing or carrying margin securities. Regulation Z is a regulation that implements the Truth in Lending Act (TILA), which requires creditors to disclose the terms and costs of consumer credit transactions. Regulation A governs the offering and sale of securities by small businesses.