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Credit Discrimination: Example

For example, assume the LEI for a financial institution is 10Bx939c5543TqA1144M and the financial institution assigned the following string of characters to identify the covered loan: 999143X. The combined string of characters is 10Bx939c5543TqA1144M999143X.

Step 1: Starting with the leftmost character in the combined string of characters, replace each alphabetic character with numbers in accordance with Table I above to obtain all numeric values in the string. The result is 10113393912554329261011442299914333.

Credit Discrimination: Validating A ULI

To determine whether the ULI contains a transcription error using the check digit calculation, the procedures are described below.

Step 1: Starting with the leftmost character in the ULI, replace each alphabetic character with numbers in accordance with Table I above to obtain all numeric values in the string.

Step 2: Apply the mathematical function mod=(n,97) where n=the number obtained in step 1 above and 97 is the divisor.

Credit Discrimination: Example

For example, the ULI assigned to a covered loan is 10Bx939c5543TqA1144M999143X38.

Step 1: Starting with the leftmost character in the ULI, replace each alphabetic character with numbers in accordance with Table I above to obtain all numeric values in the string. The result is 1011339391255432926101144229991433338.

Step 2: Apply the mathematical function mod=(n,97) where n is the number obtained in step 1 above and 97 is the divisor.

Credit Discrimination: Introduction and Listing of Provisions

The Consumer Financial Protection Bureau (CFPB) now has authority to issue Regulation C and its commentary. See Pub. L. No. 111-203, tit. X, §§ 1085(3), 1100H, 124 Stat. 2083, 2113 (July 21, 2010). On December 19, 2011, the CFPB issued its version of Regulation C and its commentary. See 76 Fed. Reg. 78,468 (Dec. 19, 2011). The major change from the Federal Reserve Board’s (FRB) version is that 12 C.F.R. part 203 citations are replaced by citations to 12 C.F.R. part 1003. Other changes are stylistic and not substantive.

Credit Discrimination: Introduction

1. Status. The commentary in this supplement is the vehicle by which the Bureau of Consumer Financial Protection issues formal interpretations of Regulation C (12 CFR part 1003).

Credit Discrimination: 2(b) Application.

1. Consistency with Regulation B. Bureau interpretations that appear in the official commentary to Regulation B (Equal Credit Opportunity Act, 12 CFR part 1002, Supplement I) are generally applicable to the definition of application under Regulation C. However, under Regulation C the definition of an application does not include prequalification requests.

Credit Discrimination: 2(c) Branch Office.

Paragraph 2(c)(1).

1. Credit unions. For purposes of Regulation C, a “branch” of a credit union is any office where member accounts are established or loans are made, whether or not the office has been approved as a branch by a Federal or State agency. (See 12 U.S.C. 1752.)

Credit Discrimination: 2(d) Closed-end Mortgage Loan.

1. Dwelling-secured. Section 1003.2(d) defines a closed-end mortgage loan as an extension of credit that is secured by a lien on a dwelling and that is not an open-end line of credit under § 1003.2(o). Thus, for example, a loan to purchase a dwelling and secured only by a personal guarantee is not a closed-end mortgage loan because it is not dwelling-secured.

Credit Discrimination: OHIO

Civil Rights: Ohio Rev. Code Ann. § 4112.021 (West) (credit transactions)

Protected Classes: Race, color, religion, age, sex, marital status, national origin, disability, military status, or ancestry.

Prohibited Practices: Lists eleven prohibited practices, including discriminating in granting, withholding, extending or renewing credit, or in rates, terms or conditions of any form of credit.

Credit Discrimination: OKLAHOMA

Civil Rights: Okla. Stat. tit. 25, §§ 1451 to 1453 (housing transactions)

Protected Classes: Race, color, religion, gender, national origin, age, disability, familial status, receipt of public assistance (as specified). §§ 1451, 1452.

Credit Discrimination: OREGON

Civil Rights: Or. Rev. Stat. §§ 659A.001 to 659A.990; Or. Rev. Stat. §§ 659A.421 to 659A.425 (housing transactions)

Protected Classes: Race, color, religion, sex, sexual orientation, gender identity, disability, marital status, familial status, national origin, or source of income.

Credit Discrimination: PENNSYLVANIA

Civil Rights: 43 Pa. Cons. Stat. §§ 951 to 963 (housing transactions)

Protected Classes: Race, color, religious creed, ancestry, national origin, sex, familial status, age, handicap or disability (including use of support animal) of applicant or prospective owner, occupant, or user of real property.

Credit Discrimination: PUERTO RICO

Fair Housing: P.R. Laws Ann. tit. 1, § 13(e)

Protected Classes: Politics, religion, sex, race, or color.

Prohibited Practices: Refusing to grant loan for dwelling construction.

Scope of Coverage: Natural or artificial persons engaged in business of granting loans for dwelling construction.

Private Remedies: Aggrieved party may bring civil action for actual damages, and court may award punitive damages. P.R. Laws Ann. tit. 1, § 14.

Credit Discrimination: RHODE ISLAND

Fair Housing: R.I. Gen. Laws §§ 34-37-1 to 34-37-11; R.I. Gen. Laws § 34-37-4(b) (housing transactions)

Protected Classes: Race, color, religion, sex, sexual orientation, marital status, country of ancestral origin, disability, military status, domestic abuse, age, gender identity or expression, lawful source of income, or familial status. § 34-37-4(b).

Prohibited Practices: Directly or indirectly discriminating in the terms, conditions, or privileges relating to obtaining or using any financial assistance.

Credit Discrimination: SOUTH CAROLINA

Fair Housing: S.C. Code Ann. §§ 31-21-10 to 31-21-150

Protected Classes: Race, color, religion, sex, familial status, national origin, or handicap.

Prohibited Practices: Refusing to sell or rent or to negotiate for the sale or rental of a dwelling; discriminating against a member of protected class in terms, conditions, or privileges of sale or rental of a dwelling, or in providing related services or facilities. § 31-21-40.

Credit Discrimination: SOUTH DAKOTA

Civil Rights: S.D. Codified Laws §§ 20-13-1 to 20-13-56; S.D. Codified Laws § 20-13-21 (housing transactions/financing)

Protected Classes: Race, color, creed, religion, sex, ancestry, disability, or national origin of applicant or prospective occupants or tenants of real property to which transaction relates.

Credit Discrimination: TENNESSEE

Civil Rights: Tenn. Code Ann. §§ 4-21-101 to 4-21-1004; Tenn. Code Ann. § 4-21-601 (housing transactions)

Protected Classes: Race, color, creed, religion, sex, disability, familial status, or national origin.

Prohibited Practices: Discrimination in the terms, conditions, or privileges of sale or rental of real property or housing accommodation.

Scope of Coverage: Any person.

Credit Discrimination: TEXAS

Consumer Credit: Tex. Fin. Code Ann. § 341.401 (West)

Protected Classes: Sex, race, color, religion, national origin, marital status, age; income from social security or SSI; exercise of rights under the Federal Consumer Credit Protection Act.

Prohibited Practices: Denying an extension of credit, including a loan, or restricting or limiting the credit extended.

Consumer Credit Regulation: Alabama

Ala. Code §§ 5-19-1 to 5-19-33 (Consumer Credit Transactions Law “Mini-Code”).

Scope: Credit transactions in which the party to whom credit is extended is a natural person and the money, property, or services are primarily for personal, family, or household purposes. Some lease transactions. Non-consumer transactions of less than $2,000 are subject to Act’s finance charge limits only. § 5-19-1. Note that the Mini-Code is broader in scope than most state RISAs and is applicable to a wide range of consumer credit transactions.

Consumer Credit Regulation: Alaska

Alaska Stat. §§ 45.10.010 to 45.10.230 (Retail Installment Sales Act).

Scope: Installment sales of goods or services for personal use from a retail seller under an installment contract or charge agreement including repairs or improvements of real property, but not services of a professional licensed by the state, or some services for which the price is determined or approved by a governmental entity. § 45.10.220

Licensure requirements: None.

Credit terms: The rate agreed upon by the retail seller and the buyer. § 45.10.120.

Consumer Credit Regulation: Arizona

Ariz. Rev. Stat. Ann. §§ 44-6001 to 44-6006 (Retail Installment Sales Transactions).

Scope: Installment sales of tangible chattels, except motor vehicles, money, things in action, or intangible personal property. Includes fixtures and merchandise certificates or coupons issued by a retail seller that are not redeemable in cash and to be used in the face amount instead of cash for goods or services sold by such seller. Revolving credit. Services. § 44-6001.

Licensure requirements: None.

Consumer Credit Regulation: California

Cal. Civ. Code §§ 1801 to 1812.20 (West) (Retail Installment Sales “Unruh” Act).

[Not to be confused with the “Unruh Civil Rights Act,” Cal. Civ. Code §§ 51–53 (West)]

Consumer Credit Regulation: Colorado

Colo. Rev. Stat. §§ 5-1-101 to 5-9.5-109 (Colorado Uniform Consumer Credit Code).

Scope: All creditors extending consumer credit except lessors and specified exclusions. § 5-1-107.

Licensure requirements: None.

Consumer Credit Regulation: Connecticut

Conn. Gen. Stat. §§ 36a-770 to 36a-788 (Retail Installment Sales Financing).

Scope: Installment sales of consumer goods and motor vehicles (having an aggregate cash price of $50,000 or less) and equipment. § 36a-770.

Licensure requirements: None.

Consumer Credit Regulation: Delaware

Del. Code Ann. tit. 6, §§ 4301 to 4351 (Retail Installment Sales Act).

Scope: Installment sales of goods for personal, family, or household use or furnishing of services (not commercial or business use). Revolving credit. § 4301. Act does not apply to any retail installment sale made for a cash sale price of $75 or less where no title, lien, or other security interest is taken by the seller. § 4302.

Licensure requirements: None.

Credit terms: Rate established by contract. § 4315.