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A borrower in a community property state applies individually for a mortgage on a home she plans to purchase as her primary residence. The lender requires information about her spouse's debts even though the spouse is not an applicant. Under ECOA, this practice is:

Federal Mortgage Law · 24% of the SAFE exammedium

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Correct answer: Permissible because in community property states, a spouse's debts may legally become shared obligations

In community property states, marital debts may become joint obligations by operation of state law. Because the spouse's liabilities could legally affect the applicant's ability to repay, Regulation B permits lenders to inquire about a non-applicant spouse's debts in community property states. This is one of the recognized exceptions to the general prohibition on requiring spousal information. "," is incorrect because the exception exists. "A violation of ECOA unless the spouse provides writt..." is wrong because income inquiry and debt inquiry are treated differently — only the debt inquiry is required here. "Permissible because in community property states, a..." is not a condition established by Regulation B.

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