Reg B Valuations - What loans are covered by the ECOA Valuations Rule?

Compliance > Regulation B - ECOA

Q:  What loans are covered by the ECOA Valuations Rule? (§ 1002.14(a)(1))

A:  The rule covers applications for closed-end or open-end credit secured by a first lien on a dwelling. These include:

  • Loans for business purposes (for example, a loan to start a business), investment or leisure purposes (such as a vacation home or investment property), or consumer purposes (for example, a loan to purchase a home)
  • Loss-mitigation transactions, such as loan modifications, short sales, and deed-in-lieu transactions, if they are credit transactions covered by Regulation B
  • Loans secured by mobile or manufactured homes 
  • Reverse mortgages 
  • Time-share loans if they are credit transactions covered by Regulation B (and if, as in each of the above examples, they are secured by a first lien on a dwelling)          

 

This can be found in the CFPB's ECOA Valuations Rule, Small Entity Compliance Guide - http://www.consumerfinance.gov/regulatory-implementation/     

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