b'Consumer Laws / Business Loans continued from page 7to verify the borrowers ability to repaypurpose loans because the statutebefore the loan closes11, and be provided the loan, (ii) issue TRID disclosures, orexplicitly states all creditors9 are withinat no additional cost to the applicant.12 (iii) comply with RESPAs loan servicingits scope, and the official interpretationHowever, applicants may waive the timing requirements. However, various federalnotes its applicability to commercialrequirement, and agree to receive copies at consumer laws still apply.It is importantas well as personal credit.The notableor before account opening.13As a general lenders are aware of and comply withrequirements set standards concerningrecommendation, lenders can include the legislation discussed in the following(i) appraisals, (ii) discrimination, and (iii)a notice of right to appraisal and waiver section. adverse action letters.of the timing requirement in the loan application package, and then provide the III. THE FEDERAL CONSUMER1. appraisals borrower with their appraisal either at the LAWS OFTEN IGNOREDclosing table or when they are notified they BY LENDERS, BUTGenerally, lenders must provide all writtenwill not be moving forward with the loan. APPLICABLE TO BUSINESSappraisals and valuation to a creditThe key takeaway here is that a lender is PURPOSE LOANS applicant, where the applicant is applyingobligated to provide the appraisal or other for a loan secured by a first lien on avaluation without the borrower requesting A. The Equal Creditdwelling.10This is a requirement whetherthis information.Opportunity Act (ECOA)the lender does or does not approve the (Regulation B) applicants request for credit, or whether2. discriminationthe application is incomplete or withdrawn. ECOA prohibits discrimination and setsLenders must provide applicants with aECOA prohibits discrimination with respect procedures for extending credit andnotice of their right to these copies withinto any aspect of a credit transaction, based communication with credit applicants.7three business days of the applicationson race, color, religion, national origin, Regulation B implements ECOA andsubmission.The actual copies must besex, marital status, age, and whether an contains additional requirements.8ECOAprovided promptly after the valuations requirements are applicable to businessare completed, or at least three dayscontinued on page 9Page 8Fall 2019Points of Interest'