Full text of Federal Reserve Bank of New York Circulars : 8044. Regulation B - Equal Credit Opportunity

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FEDERAL RESERVE BANK
OF NEW YORK
r Circular No. 8044 "I
L January 28, 1977 J

REGULATION B — EQUAL CREDIT OPPORTUNITY
— Model Consumer Credit Application Forms
— Copies of Regulation B Pamphlet
To All Member Banks, and Others Concerned,
in the Second Federal Reserve District:

Following is the text of a statem ent issued January 19 by the Board of Governors of the Federal
Reserve System:
The Board of Governors of the Federal Reserve System today adopted five model application forms
designed to help small creditors comply with the Equal Credit Opportunity Act.
The Act was broadened by Congress in 1976 to forbid discrimination in extension of credit on the
grounds of seven new bases, including race, color, religion, national origin and age, in addition to discrim
ination on the grounds of sex and marital status forbidden in the original Act. The Act directed the
Federal Reserve to write regulations to carry it out. The amended Act, and revised regulations, will
become effective March 23, 1977.
In publishing its revised Equal Credit Opportunity Regulation B on December 30, the Board said it
would shortly publish, as an appendix to the Regulation, model application forms that, when properly
used, would comply with the requirements of the revised Regulation. Creditors may make non
substantive changes in the model forms and still be in compliance. Creditors who wish to devise their
own application forms may do so.
The Board said it was providing the model forms because many creditors, especially smaller creditors,
had experienced difficulty in preparing credit application forms that complied with the existing Regulation B.
The appendix contains five types of model forms for use in different types of consumer credit trans
actions: unsecured open-end credit; secured closed-end credit; closed-end credit secured or unsecured;
credit transactions in community property States, and residential real estate mortgage credit.
It also includes a set of directions for use of the model forms.
The four non-real estate forms are the same in format as proposed by the Board in November, but
changes have been made in their content after review of comment received. The residential real estate
application form has also been revised in the light of comment received after it was published for comment
in November. The revision was carried out in consultation with the Federal Home Loan Mortgage Cor
poration and the Federal National Mortgage Association.
Lenders who wish to sell a mortgage to FHLMC or FNMA, may use either a modified version of the
model form that meets the specific requirements of those secondary mortgage market agencies or use the
joint FHLMC/FNMA residential loan application, which is almost identical to the model form. The
FHLMC/FNMA form complies with the requirements of Regulation B.
The model form contains questions on sex and race/national origin that creditors are required to ask
to assist in gathering data for enforcement purposes. The title of this section of the model form has been
revised since the November proposal to emphasize that the information is being sought by the Federal
Government, not for the use of the creditor in assessing creditworthiness, and that answering these ques
tions is entirely voluntary on the part of the applicant.
Printed on tbe following pages is the text of the Board’s Order in this matter. In addition,
enclosed is a copy of the revised Regulation B pam phlet, which contains, in Appendix B, a copy of each
of the model forms referred to above. M ultiple copies of the forms will not be furnished by the Board
of Governors or by this Bank; creditors will be responsible for reproducing their own forms.
Questions on this m atter may be directed to our Bank Regulations D epartm ent.
P aul A. V olcker,
President.

[Reg. B; Docket No. R-0031]
PART 202 — EQUAL CREDIT OPPORTUNITY
Amendments to Regulation B to Implement the 1976
Amendments to the Equal Credit Opportunity Act
Model Credit Application Forms
Pursuant to the 1976 amendments to the Equal
Credit Opportunity Act (15 U.S.C. 1691 et seq.), the
Board published for public comment on July 20 (41
FR 29870) and November 8, 1976 (41 FR 49123)
proposed revisions of its Regulation B, which imple
ments the Act. Since many creditors, particularly
smaller ones, experienced difficulties in preparing
credit application forms to comply with existing Regu
lation B, the Board included in its July and November
proposals sample application forms. In addition, on
November 24, the Board published (41 FR 51837) a
proposed model residential real estate mortgage loan
application.

revised version of Regulation B, including Appendix
B, becomes effective on March 23, 1977.
Cover Sheet of Appendix B
The directions printed on the cover sheet of Appen
dix B have been completely rewritten and expanded.
As revised, the directions specify the appropriate use
for each form, confirm the optional nature of the
forms, and list the three informational items that a
creditor is expressly authorized to add to any of the
model forms. The directions also note that the model
residential real estate mortgage loan application was
developed in conjunction with the Federal Home
Loan Mortgage Corporation and the Federal National
Mortgage Association, and is substantiallv the same as
the joint FHLMC 65/FNMA 1003 (Rev. 3/77) form.
The directions state, however, that the model form
must be modified as required by FHLMC and FNMA
or the joint FHLMC/FNMA form must be used if a
creditor intends to participate in the gavemmentally
sponsored secondary mortgage market. The FHLMC
65/FNMA 1003. (Rev. 3/77) form, of course, com
plies with the requirements of the revised version of
Regulation B.

After consideration of the numerous comments that
were submitted regarding the proposed model forms,
the Board has adopted revised versions of the forms,
which constitute Appendix B of Regulation B as pub
lished on January 6, 1977 (42 FR 1242). Appendix B
contains five model forms: one designed for use in
open end, unsecured consumer credit transactions;
one for closed end, secured transactions; another one
for closed end transactions, whether unsecured or
secured; one for use in community property situations;
and one for use in residential real estate mortgage
transactions.

Non-Real Estate Forms
While the general format of the four non-real estate
model forms remains unchanged from the November
proposal, several significant clarifying changes have
been made.

The Appendix B forms are only models. Their use
is optional. A creditor may design its own forms; use
forms prepared by another person or entity; or use or
modify the model forms. Proper use of the model
forms assures compliance with Regulation B’s require
ments. Before using a model form, however, a creditor
should check that use of the form complies with
applicable State law. The subject of application forms
is covered in § 202.5(e) of the revised regulation.

The directions to the applicant at the head of the
forms have been rewritten in an attempt to clarify
those instructions. Since creditors may include, par
ticularly in open end credit situations, an obligation
agreement on the forms and since the issue of who
must sign an application is a matter of policy for each
creditor to decide in conformity with the requirements
of § 202.7(d) of the revised regulation, the directions
regarding signatures have been deleted.

The forms will be printed as sample applications in
a pamphlet containing the texts of Regulation B and
the amended Equal Credit Opportunity Act. If a
creditor chooses to use a model form, it should make
its own reproduction arrangements using the forms as
they appear in the Board’s pamphlet or as printed in
the Federal Register. Neither the Board nor the Fed
eral Reserve Banks will print or distribute multiple
copies for actual use by a creditor. Copies of the
model residential real estate mortgage loan applica
tion, as modified to meet the requirements of the
Federal Home Loan Mortgage Corporation and the
Federal National Mortgage Association (form FHLMC
65/FNMA 1003 (Rev. 3/77)), will be available for
reproduction purposes from either FHLMC or FNMA.

While several commentators recommended that the
terms “applicant” and “co-applicant” be substituted
for the word “you” in the directions, the Board has
decided to retain the “you.” Although the use of
“you” may be ambiguous when a joint applicant is
invok ed, the substitution of “applicant” and “co-appli
cant” would make the directions lengthier and would,
in the Board’s opinion, negate any clarity obtained by
the substitution.
At the request of several creditors, “birthdate” has
been substituted for “age” in the inquiries about age
in Sections A and B of the forms. This was done to
provide birthdate information as an identifier for

A discussion of the changes that have been made in
the forms from the November proposals follows. The

credit investigations and credit reporting purposes and
to provide the necessary birthdate information when
credit insurance is involved.
In order to obtain a more accurate picture of an
applicant’s disposable income, the word “net” has been
inserted before “salary or commission” in both Sec
tions A and B to clarify that the question requests
after-tax take-home pay.
The notice regarding the option not to reveal ali
mony, child support, or separate maintenance income
has been further highlighted by placing it within a
rectangular box. Also included within the box is the
question about the basis on which such income is paid.
This was done to underscore the point that no infor
mation concerning the receipt of alimony, child sup
port, or separate maintenance need be provided if an
applicant chooses not to do so.
Since the revised regulation (§§ 202.6(b)( 2 ) (iii)
and 202.6( b) ( 5) ) permits creditors to consider the
probable continuity of an applicant’s income, a ques
tion about the likelihood of a reduction in income has
been added to the forms.
Since a creditor is permitted to inquire about the
marital status of any party about whom information is
furnished when the application is not for an unse
cured, individual account, Section C has been ex
panded to include a request about the marital status
of any such other party.
In Section D, under Assets Owned, the third column
has been retitled “Subject to Debt? — Yes/No” to
replace the confusing title “Encumbered?” In that
same section, more space has been provided for listing
automobiles, real estate, and marketable securities.
Credit references have been segregated from out
standing debts, a note has been inserted that rent pay
ments should not be included in the Original Debt
and Present Balance columns, and the Past Due col
umn has been converted into a yes/no question.
The statement above the signature lines has been
completely rewritten to simplify and clarify it. Since
the criminal penalty statement would not necessarily
apply in every situation and since it appeared in
appropriate on a model form, it has been deleted.
Finally, since they were inappropriate in certain con
texts, the words “borrow,” “loan,” and “lender” and
similar terms have been eliminated from the forms.

The item requesting whether the property is a fee,
leasehold, condominium, or planned unit development
has been deleted. The request would be confusing to
an applicant, and the information is better obtained
at the appraisal stage.
The blocks relating to the names and manner in
which title will be held have been revised to make the
questions more understandable to an applicant.
The item asking who the note will be signed by has
been deleted. That determination is one to be made
by the creditor in compliance with § 202.7(d) of the
revised regulation.
The instructions regarding the completion of the
co-borrower section have been rewritten to make them
clearer. A sentence has also been added to indicate
that the form is designed to be completed by an appli
cant with the lender’s assistance.
Lines for the borrower’s and co-borrower’s Social
Security numbers have been added. This information
will assist creditors in verifying and furnishing credit
history information. Also, spaces have been inserted
on the front of the form for home and office telephone
numbers.
A footnote has been added, specifying that present
monthly housing expenses should be listed by the bor
rower and co-borrower on a combined basis. For
purposes of a comparison between present and pro
posed monthly housing expenses, a combined listing
makes more sense than the separate listing required in
the November proposal.
Under Details of Purchase, the abbreviation
“(Est.)” has been inserted on lines b, c, and j to make
clear that the listed closing costs are estimates. This
section is intended to assist a lender at the application
stage in calculating whether an applicant has the
funds to meet anticipated closing costs. It is not a
substitute for the good-faith estimate of settlement
costs required by the Real Estate Settlement Pro
cedures Act.
The section at the bottom of the front of the form
has been revised. The request for an explanation of a
“yes” answer has been rewritten to make clear that it
applies only to the questions in the left-hand column
and not to the ones in the right-hand column. The first
series of questions in the left column have been re
phrased and separated into distinct questions. Finally,
the words “sales price’’ have been substituted for the
less definite term “value” in the last question in the
column on the right.

Real Estate Form
The model residential real estate mortgage loan
application published by the Board in November fol
lowed the form designed and currently used by the
Federal Home Loan Mortgage Corporation and the
Federal National Mortgage Association. In coopera
tion with those agencies, the Board has revised the
proposed form in response to the numerous and ex
tensive comments that were submitted.
For clarification, certain abbreviations have been
modified or spelled out.

On the reverse side, more space has been provided
in the schedule of assets and liabilities, and, in the
liabilities section, a column has been inserted for the
name in which a debt is carried by a creditor if dif
ferent from the borrower’s or co-borrower’s name.
The credit references section has been expanded to
include a request for any other names in which the
borrower or co-borrower has received credit.

In addition, the questions regarding marital status
and age have been deleted from the monitoring sec
tion because their inclusion was confusing. Although
marital status and age information is sought for moni
toring purposes, questions relating to those items
appear on the face of the form, where disclosure of
the information is not optional. Furthermore, a credi
tor may consider that information as authorized in
Regulation B.
For the reasons stated in this notice and pursuant to
section 703 of the Equal Credit Opportunity Act (15
U.S.C. 1691 et seq.), the following materials are
adopted as Appendix B of Regulation B (12 CFR
202), effective March 23, 1977.
By order of the Board of Governors, January 14,
1977.

The agreement has been modified to include a
notice that the application will be retained by the
lender. The criminal penalties provision has been
deleted since it would not apply to lenders whose
assets are not insured by a Federal agency or who do
not make Federally insured or guaranteed loans.
The section relating to information for monitoring
purposes has been changed in several respects. The
title of the section and the text have been revised to
underscore that the information is being sought by the
Federal government, not the lender, and that furnish
ing the information is completely voluntary. The text
has also been changed to clarify that the request for
information applies only if an applicant is seeking a
mortgage loan for the purchase of residential real
property or the construction of a home.

CONTENTS
Page

Page
S e c . 2 0 2.1 — A u t h o r i t y , S c o p e , E n f o r c e
m e n t , P e n a l t ie s and L ia
bilities, In t e r pr e t a t io n s. .

S e c . 2 0 2 .2 — D e f i n i t i o n s and R u l e s of
C o n s t r u c t io n .........................

S e c . 20 2.8— S pe cia l P u r p o s e C redit P ro
gr am s ..........................................

Sec.

2 02 .9 — N o t if ic a t io n s .............................

S e c . 2 0 2 .1 0 — F u r n is h in g of C re di t I n f o r
m a t io n

S e c . 2 02.3— S p ec ia l T r e a t m e n t fo r C e r
tain C lasses of T ransac
t io n s
...........................................
S e c . 2 0 2.4— G e n e r a l

R ul e

t io n s

C o n c e r n i n g A p p l ic a
..........................................

C o n c e r n i n g E valua
t ion of A p p l i c a t i o n s ..........

S e c . 20 2 .1 2 — -Record R e t e n t i o n ................

S e c . 2 0 2 .7 — R u l e s

C oncerning
Exten
C redit ....................

sions of

A p p e n d i x ...............................

A g e n c ie s
10

A ppendix

B— M odel

Enforcement
..............................

A p p l ic a t i o n F or m s

S u p p l e m e n t I— P ro ced ur es
11

M onitor
19

A ppendix A— F e d e r a l

S e c . 2Q2.6— R u l e s

for

P u r p o s e s .........................

ing

S t a t ut o ry
8

S e c . 2 0 2 .1 1 — R e l a t io n to S ta te L aw . . . .

S e c . 20 2 .1 3 — I n f o r m a t i o n

P r o hibit ing

D i s c r i m i n a t i o n ............................

S e c . 2 0 2 .5 — R u l e s

.....................................

fo r

S tate

E x e m p t i o n ......................

STATUTORY AUTHORITY
This regulation is based upon and issued pursuant to provisions of section 703 of the Equal Credit Op
portunity Act, U.S.C., Title 15, sec. 1691 et seq.

REGULATION B
(12 CFR 202)
Effective March 23, 1977

EQUAL CREDIT OPPORTUNITY

posed under the Act and this Part will be en
forced by the Federal Trade Commission.
(c) Penalties and liabilities. (1) Sections
706(a) and (b) of the Act provide that any
(a) Authority and scope. This Part1 comprises
creditor who fails to comply with any requirement
imposed under the Act or, pursuant to section
the regulations issued by the Board of Governors
702(g), this Part is subject to civil liability for
of the Federal Reserve System pursuant to Title
VII (Equal Credit Opportunity Act) of the Con
actual and punitive damages in individual or
class actions. Pursuant to section 704 of the Act,
sumer Credit Protection Act, as amended (15
U.S.C. § 1601 et seq .). Except as otherwise pro
violations of the Act or, pursuant to section
702(g), this Part constitute violations of other
vided herein, this Part applies to all persons who
Federal laws that may provide further penalties.
are creditors, as defined in section 202.2(7).
Liability for punitive damages is restricted by sec
(b) Administrative enforcement. (1) As set
tion
706(b) to non-governmental entities and is
forth more fully in section 704 of the Act, ad
limited
to $10,000 in individual actions and the
ministrative enforcement of the Act and this Part
lesser
of
$500,000 or one percent of the creditor’s
regarding certain creditors is assigned to the
net worth in class actions. Section 706(c) provides
Comptroller of the Currency, Board of Governors
for equitable and declaratory relief. Section
of the Federal Reserve System, Board of Di
706(d) authorizes the awarding of costs and
rectors of the Federal Deposit Insurance Corpora
reasonable attorney’s fees to an aggrieved appli
tion, Federal Home Loan Bank Board (acting
cant
in a successful action.
directly or through the Federal Savings and
(2)
Section 706(e) relieves a creditor from
Loan Insurance Corporation), Administrator of
civil liability resulting from any act done or
the National Credit Union Administration, Inter
omitted in good faith in conformity with any
state Commerce Commission, Civil Aeronautics
rule, regulation, or interpretation by the Board of
Board, Secretary of Agriculture, Farm Credit
Governors of the Federal Reserve System, or
Administration, Securities and Exchange Com
with any interpretations or approvals issued by
mission, and Small Business Administration.
(2)
Except to the extent that administrative a duly authorized official or employee of the
Federal Reserve System, notwithstanding that af
enforcement is specifically committed to other
ter such act or omission has occurred, such rule,
authorities, compliance with the requirements im
regulation, interpretation, or approval is amended,
1 As used herein, the words “this Part" mean Regula rescinded, or otherwise determined to be invalid
tion B, 12 CFR 202.
for any reason.
SECTION 202.1—AUTHORITY, SCOPE,
ENFORCEMENT, PENALTIES AND
LIABILITIES, INTERPRETATIONS

§ 202.2

R E G U L A T IO N B

(3) As provided in section 706(f), a civil
action under the Act or this Part may be brought
in the appropriate United States district court
without regard to the amount in controversy or
in any other court of competent jurisdiction with
in two years after the date of the occurrence of
the violation or within one year after the com
mencement of an administrative enforcement
proceeding or a civil action brought by the At
torney General within two years after the al
leged violation.
(4) Sections 706(g) and (h) provide that, if
the agencies responsible for administrative en
forcement are unable to obtain compliance with
the Act or, pursuant to section 702(g), this
Part, they may refer the matter to the Attorney
General. On such referral, or whenever the At
torney General has reason to believe that one
or more creditors are engaged in a pattern or
practice in violation of the Act or this Part, the
Attorney General may bring a civil action.
(d) Interpretations. (1) A request for a for
mal Board interpretation or an official staff in
terpretation of this Part must be addressed to the
Director of the Division of Consumer Affairs,
Board of Governors of the Federal Reserve Sys
tem, Washington, D.C. 20551. Each request for
an interpretation must contain a complete state
ment, signed by the person making the request
or a duly authorized agent, of all relevant facts
of the transaction or credit arrangement relating
to the request. True copies of all pertinent doc
uments must be submitted with the request. The
relevance of such documents must, however, be
set forth in the request, and the documents must
not merely be incorporated by reference. The
request must contain an analysis of the bearing
of the facts on the issues and must specify the
pertinent provisions of the statute and regulation.
Within 15 business days of receipt of the request,
a substantive response will be sent to the person
making the request, or an acknowledgement will
be sent that sets a reasonable time within which
a substantive response will be given.
(2)
Any request for reconsideration of an
official staff interpretation of this Part must be
addressed to the Secretary, Board of Governors
of the Federal Reserve System, Washington, D.C.
20551, within 30 days of the publication of such
interpretation in the Federal Register. Each re
quest for reconsideration must contain a statement
setting forth in full the reasons why the person

making the request believes reconsideration would
be appropriate, and must specify and discuss the
applicability of the relevant facts, statute, and
regulations. Within 15 business days of receipt of
such request for reconsideration, a response grant
ing or denying the request will be sent to the per
son making the request, or an acknowledgement
will be sent that sets a reasonable time within
which such response will be given.
(3) Pursuant to section 706(e) of the Act,
the Board has designated the Director and other
officials of the Division of Consumer Affairs as
officials “duly authorized” to issue, at their dis
cretion, official staff interpretations of this Part.
This designation shall not be interpreted to in
clude authority to approve particular creditors’
forms in any manner.
(4) The type of interpretation issued will be
determined by the Board and the designated of
ficials by the following criteria:
(i) Official Board interpretations will be
issued upon those requests that involve potentially
controversial issues of general applicability deal
ing with substantial ambiguities in this Part and
that raise significant policy questions.
(ii) Official staff interpretations will be is
sued upon those requests that, in the opinion
of the designated officials, require clarification
of technical ambiguities in this Part or that have
no significant policy implications.
(iii) Unofficial staff interpretations will be
issued where the protection of section 706(e) of
the Act is neither requested nor required, or
where time strictures require a rapid response.
SECTION 202.2—DEFINITIONS
AND RULES OF CONSTRUCTION
For the purposes of this Part, unless the con
text indicates otherwise, the following definitions
and rules of construction shall apply: 2
(a) Account means an extension of credit.
When employed in relation to an account, the
word use refers only to open end credit.
(b) Act means the Equal Credit Opportunity
Act (Title VII of the Consumer Credit Protection
Act).
(c) Adverse action. (1) For the purposes of
notification of action taken, statement of reasons
for denial, and record retention, the term means:
2 Note that some of the definitions in this Part are not
identical to those in 12 CFR 226 (Regulation Z).

§ 202.2

R E G U L A T IO N B

plication in connection with which a creditor has
received all the information that the creditor
regularly obtains and considers in evaluating ap
plications for the amount and type of credit re
quested (including, but not limited to, credit re
ports, any additional information requested from
the applicant, and any approvals or reports by
governmental agencies or other persons that are
necessary to guarantee, insure, or provide security
for the credit or collateral); provided, however,
that the creditor has exercised reasonable dili
gence in obtaining such information. Where an
application is incomplete respecting matters that
the applicant can complete, a creditor shall make
a reasonable effort to notify the applicant of the
incompleteness and shall allow the applicant a
reasonable opportunity to complete the applica
tion.
(g) Board means the Board of Governors of the
Federal Reserve System.
(h) Consumer credit means credit extended to
a natural person in which the money, property,
or service that is the subject of the transaction is
primarily for personal, family, or household pur
poses.
(i) Contractually liable means expressly obli
gated to repay all debts arising on an account
by reason of an agreement to that effect.
(j) Credit means the right granted by a creditor
to an applicant to defer payment of a debt, incur
debt and defer its payment, or purchase property
or services and defer payment therefor.
(k) Credit card means any card, plate, cou
pon book, or other single credit device existing
for the purpose of being used from time to time
upon presentation to obtain money, property, or
services on credit.
(/) Creditor means a person who, in the ordi
nary course of business, regularly participates in
the decision of whether or not to extend credit.
The term includes an assignee, transferee, or
subrogee of an original creditor who so partici
pates; but an assignee, transferee, subrogee, or
other creditor is not a creditor regarding any vio
lation of the Act or this Part committed by the
original or another creditor unless the assignee,
transferee, subrogee, or other creditor knew or
had reasonable notice of the act, policy, or prac
tice that constituted the violation before its in
volvement with the credit transaction. The term
does not include a person whose only participa

(i) a refusal to grant credit in substantially
the amount or on substantially the terms re
quested by an applicant unless the creditor offers
to grant credit other than in substantially the
amount or on substantially the terms requested
by the applicant and the applicant uses or ex
pressly accepts the credit offered; or
(ii) a termination of an account or an un
favorable change in the terms of an account that
does not affect all or a substantial portion of
a classification of a creditor’s accounts; or
(iii) a refusal to increase the amount of
credit available to an applicant when the appli
cant requests an increase in accordance with pro
cedures established by the creditor for the type
of credit involved.
(2) The term does not include:
(i) a change in the terms of an account ex
pressly agreed to by an applicant; or
(ii) any action or forbearance relating to
an account taken in connection with inactivity,
default, or delinquency as to that account; or
(iii) a refusal to extend credit at a point of
sale or loan in connection with the use of an ac
count because the credit requested would ex
ceed a previously established credit limit on the
account; or
(iv) a refusal to extend credit because ap
plicable law prohibits the creditor from extend
ing the credit requested; or
(v) a refusal to extend credit because the
creditor does not offer the type of credit or credit
plan requested.
(d) Age refers only to natural persons and
means the number of fully elapsed years from
the date of an applicant’s birth.
(e) Applicant means any person who requests
or who has received an extension of credit from
a creditor, and includes any person who is or may
be contractually liable regarding an extension
of credit other than a guarantor, surety, endorser,
or similar party.
(f) Application means an oral or written re
quest for an extension of credit that is made in
accordance with procedures established by a credi
tor for the type of credit requested. The term
does not include the use of an account or line of
credit to obtain an amount of credit that does
not exceed a previously established credit limit.
A completed application for credit means an ap

§ 202.2

R E G U L A T IO N B

tion in a credit transaction involves honoring a
statistical principles and is adjusted as necessary
credit card.
to maintain its predictive ability.
(m) Credit transaction means every aspect of
(3)
A creditor may use a demonstrably and
an applicant’s dealings with a creditor regarding
statistically sound, empirically derived credit sys
an application for, or an existing extension of,
tem obtained from another person or may obtain
credit including, but not limited to, information
credit experience from which such a system may
requirements; investigation procedures; standards
be developed. Any such system must satisfy the
of creditworthiness; terms of credit; furnishing of
tests set forth in subsections (1) and (2); provided
credit information; revocation, alteration, or ter
that, if a creditor is unable during the develop
mination of credit; and collection procedures.
ment process to validate the system based on its
own credit experience in accordance with subsec
(n) Discriminate against an applicant means
tion (2)(iii), then the system must be validated
to treat an applicant less favorably than other ap
when sufficient credit experience becomes avail
plicants.
able. A system that fails this validity test shall
(o) Elderly means an age of 62 or older.
henceforth be deemed not to be a demonstrably
(p) Empirically derived credit system. (1)
and statistically sound, empirically derived credit
The term means a credit scoring system that eval
system for that creditor.
uates an applicant’s creditworthiness primarily by
(q) Extend credit and extension of credit mean
allocating points (or by using a comparable basis
the
granting of credit in any form and include,
for assigning weights) to key attributes describing
but
are not limited to, credit granted in addition
the applicant and other aspects of the transaction.
to
any
existing credit or credit limit; credit
In such a system, the points (or weights) assigned
granted
pursuant
to an open end credit plan; the
to each attribute, and hence the entire score:
refinancing or other renewal of credit, including
(i) are derived from an empirical comparison
the issuance of a new credit card in place of an
of sample groups or the population of creditworthy
expiring credit card or in substitution for an
and non-creditworthy applicants of a creditor who
existing
credit card; the consolidation of two or
applied for credit within a reasonable preceding
more
obligations;
or the continuance of existing
period of time; and
credit without any special effort to collect at or
(ii) determine, alone or in conjunction with
after maturity.
an evaluation of additional information about the
(r) Good faith means honesty in fact in the
applicant, whether an applicant is deemed credit
conduct or transaction.
worthy.
(s) Inadvertent error means a mechanical, elec
(2)
A demonstrably and statistically sound,
tronic, or clerical error that a creditor demon
empirically derived credit system is a system :
strates was not intentional and occurred notwith
(i) in which the data used to develop the
standing the maintenance of procedures reason
system, if not the complete population consisting
ably adapted to avoid any such error.
of all applicants, are obtained from the applicant
(t) Judgmental system of evaluating applicants
file by using appropriate sampling principles;
means any system for evaluating the creditworthi
ness of an applicant other than a demonstrably
(ii) which is developed for the purpose of
and
statistically sound, empirically derived credit
predicting the creditworthiness of applicants with
system.
respect to the legitimate business interests of the
(u) Marital status means the state of being un
creditor utilizing the system, including, but not
married,
married, or separated, as defined by
limited to, minimizing bad debt losses and operat
applicable
State law. For the purposes of this
ing expenses in accordance with the creditor’s
Part,
the
term
“unmarried” includes persons who
business judgment;
are single, divorced, or widowed.
(iii) which, upon validation using appropri
(v) Negative factor or value, in relation to the
ate statistical principles, separates creditworthy
age of elderly applicants, means utilizing a factor,
and non-creditworthy applicants at a statistically
value, or weight that is less favorable regarding
significant rate; and
elderly applicants than the creditor’s experience
(iv) which is periodically revalidated as to
warrants or is less favorable than the factor, value,
its predictive ability by the use of appropriate
or weight assigned to the class of applicants that

R E G U L A T IO N B

§ 2 0 2 .3

are not classified as elderly applicants and are
most favored by a creditor on the basis of age.
(w) Open end credit means credit extended
pursuant to a plan under which a creditor may
permit an applicant to make purchases or obtain
loans from time to time directly from the creditor
or indirectly by use of a credit card, check, or
other device as the plan may provide. The term
does not include negotiated advances under an
open end real estate mortgage or a letter of credit.
(x) Person means a natural person, corporation,
government or governmental subdivision or agency,
trust, estate, partnership, cooperative, or associa
tion.
(y) Pertinent element of creditworthiness, in
relation to a judgmental system of evaluating ap
plicants, means any information about applicants
that a creditor obtains and considers and that has
a demonstrable relationship to a determination of
creditworthiness.
(z) Prohibited basis means race, color, religion,
national origin, sex, marital status, or age (pro
vided that the applicant has the capacity to enter
into a binding contract); the fact that all or part
of the applicant’s income derives from any public
assistance program, or the fact that the applicant
has in good faith exercised any right under the
Consumer Credit Protection Act:t or any State
law upon which an exemption has been granted
by the Board.
(aa) Public assistance program means any Fed
eral, State, or local governmental assistance pro
gram that provides a continuing, periodic income
supplement, whether premised on entitlement or3

need. The term includes, but is not limited to,
Aid to Families with Dependent Children, food
stamps, rent and mortgage supplement or assist
ance programs, Social Security and Supplemental
Security Income, and unemployment compensa
tion.
(bb)
State means any State, the District of Co
lumbia, the Commonwealth of Puerto Rico, or
any territory or possession of the United States.
(cc) Captions and catchlines are intended
solely as aids to convenient reference, and no
inference as to the substance of any provision of
this Part may be drawn from them.
(dd) Footnotes shall have the same legal effect
as the text of the regulation, whether they are
explanatory or illustrative in nature.
SECTION 202.3—SPECIAL TREATMENT
FOR CERTAIN CLASSES OF
TRANSACTIONS
(a)
Classes of transactions afforded special treat
ment. Pursuant to section 703(a) of the Act, the

3 The first clause of the definition is not limited to
characteristics of the applicant. Therefore, “prohibited
basis” as used in this Part refers not only to the race,
color, religion, national origin, sex, marital status, or age
of an applicant (or of partners or officers of an appli
cant), but refers also to the characteristics of individuals
with whom an applicant deals. This means, for example,
that, under the general rule stated in section 202.4, a credi
tor may not discriminate against a non-Jewish applicant
because of that person’s business dealings with Jews, or
discriminate against an applicant because of the charac
teristics of persons to whom the extension of credit
relates (e.g., the prospective tenants in an apartment com
plex to be constructed with the proceeds of the credit
requested), or because of the characteristics of other
individuals residing in the neighborhood where the prop
erty offered as collateral is located. A creditor may take
into account, however, any applicable law, regulation, or
executive order restricting dealings with citizens or gov
ernments of other countries or imposing limitations re
garding credit extended for their use.
The second clause is limited to an applicant’s ^receipt
of public assistance income and to an applicant’s good
faith exercise of rights under the Consumer Credit Pro
tection Act or applicable State law.

following classes of transactions are afforded
specialized treatment:
(1) extensions of credit relating to transactions
under public utility tariffs involving services pro
vided through pipe, wire, or other connected
facilities if the charges for such public utility serv
ices, the charges for delayed payment, and any
discount allowed for early payment are filed with,
or reviewed or regulated by, an agency of the
Federal government, a State, or a political sub
division thereof;
(2) extensions of credit subject to regulation
under section 7 of the Securities Exchange Act
of 1934 or extensions of credit by a broker or
dealer subject to regulation as a broker or dealer
under the Securities Exchange Act of 1934;
(3) extensions of incidental consumer credit,
other than of the types described in subsections
(a)(1) and (2):
(i) that are not made pursuant to the terms
of a credit card account;
(ii) on which no finance charge as defined
in section 226.4 of this Title (Regulation Z, 12
CFR 226.4) is or may be imposed; and
(iii) that are not payable by agreement in
more than four instalments;
(4) extensions of credit primarily for business
or commercial purposes, including extensions of

§ 2 0 2 .4

R E G U L A T IO N B

credit primarily for agricultural purposes, but ex
cluding extensions of credit of the types described
in subsections (a)(1) and (2); and
(5)
extensions of credit made to governments
or governmental subdivisions, agencies, or instru
mentalities.
(b) Public utilities credit. The following pro
visions of this Part shall not apply to extensions of
credit of the type described in subsection (a)(1):
(1) section 202.5(d)(1) concerning information
about marital status;
(2) section 202.10 relating to furnishing of
credit information; and
(3) section 202.12(b) relating to record reten
tion.
(c) Securities credit. The following provisions
of this Part shall not apply to extensions of credit
of the type described in subsection (a)(2):
(1) section 202.5(c) concerning information
about a spouse or former spouse;
(2) section 202.5(d)(1) concerning information
about marital status;
(3) section 202.5(d)(3) concerning information
about the sex of an applicant;
(4) section 202.7(b) relating to designation of
name, but only to the extent necessary to prevent
violation of rules regarding an account in which a
broker or dealer has an interest, or rules necessi
tating the aggregation of accounts of spouses for
the purpose of determining controlling interests,
beneficial interests, beneficial ownership, or pur
chase limitations and restrictions;
(5) section 202.7(c) relating to action concern
ing open end accounts, but only to the extent the
action taken is on the basis of a change of name
or marital status;
(6) section 202.7(d) relating to signature of a
spouse or other person;
(7) section 202.10 relating to furnishing of
credit information; and
(8) section 202.12(b) relating to record reten
tion.
(d) Incidental credit. The following provisions
of this Part shall not apply to extensions of credit
of the type described in subsection (a)(3):
(1) section 202.5(c) concerning information
about a spouse or former spouse;
(2) section 202.5(d)(1) concerning information
about marital status:
(3) section 202.5(d)(2) concerning information
about income derived from alimony, child sup
port, or separate maintenance payments;

(4) section 202.5(d)(3) concerning information
about the sex of an applicant to the extent neces
sary for medical records or similar purposes;
(5) section 202.7(d) relating to signature of a
spouse or other person;
(6) section 202.9 relating to notifications;
(7) section 202.10 relating to furnishing of
credit information; and
(8) section 202.12(b) relating to record reten
tion.
(e) Business credit. The following provisions of
this Part shall not apply to extensions of credit of
the type described in subsection (a)(4):
(1) section 202.5(d)(1) concerning information
about marital status;
(2) section 202.9 relating to notifications, unless
an applicant, within 30 days after oral or written
notification that adverse action has been taken,
requests in writing the reasons for such action;
(3) section 202.10 relating to furnishing of
credit information; and
(4) section 202.12(b) relating to record reten
tion, unless an applicant, within 90 days after
adverse action has been taken, requests in writing
that the records relating to the application be
retained.
(f) Governmental credit. Except for section 202.1
relating to authority, scope, enforcement, penalties
and liabilities, and interpretations, section 202.2
relating to definitions and rules of construction,
this section, section 202.4 relating to the general
rule prohibiting discrimination, section 202.6(a)
relating to the use of information, section 202.11
relating to State laws, and section 202.12(a) relat
ing to the retention of prohibited information, the
provisions of this Part shall not apply to extensions
of credit of the type described in subsection (a)(5).
SECTION 202.4—GENERAL RULE
PROHIBITING DISCRIMINATION
A creditor shall not discriminate against an
applicant on a prohibited basis regarding any
aspect of a credit transaction.
SECTION 202.5—RULES CONCERNING
APPLICATIONS
(a) Discouraging applications. A creditor shall
not make any oral or written statement, in adver

§ 202.5

R E G U L A T IO N B

tising or otherwise, to applicants or prospective
applicants that would discourage on a prohibited
basis a reasonable person from making or pur
suing an application.
(b) General rules concerning requests for infor
mation. (1) Except as otherwise provided in this
section, a creditor may request any information
in connection with an application.4
(2) Notwithstanding any other provision of this
section, a creditor shall request an applicant’s
race/national origin, sex, and marital status as
required in section 202.13 (information for moni
toring purposes). In addition, a creditor may ob
tain such information as may be required by a
regulation, order, or agreement issued by, or
entered into with, a court or an enforcement
agency (including the Attorney General or a sim
ilar State official) to monitor or enforce compli
ance with the Act, this Part, or other Federal
or State statute or regulation.
(3) The provisions of this section limiting per
missible information requests are subject to the
provisions of section 202.7(e) regarding insurance
and sections 202.8(c) and (d) regarding special
purpose credit programs.
(c) Information about a spouse or former
spouse. (1) Except as permitted in this subsection,
a creditor may not request any information con
cerning the spouse or former spouse of an appli
cant.
(2)
A creditor may request any information
concerning an applicant’s spouse (or former
spouse under (v) below) that may be requested
about the applicant if:
(i) the spouse will be permitted to use the
account; or
(ii) the spouse will be contractually liable
upon the account; or
(iii) the applicant is relying on the spouse’s
income as a basis for repayment of the credit
requested; or
(iv) the applicant resides in a community
property State or property upon which the appli
cant is relying as a basis for repayment of the
credit requested is located in such a State; or
♦ This subsection is not intended to limit or abrogate
any Federal or State law regarding privacy, privileged
information, credit reporting limitations, or similar re
strictions on obtainable information. Furthermore, permis
sion to request information should not be confused with
how it may be utilized, which is governed by section
202.6 (rules concerning evaluation of applications).

(v)
the applicant is relying on alimony, child
support, or separate maintenance payments from
a spouse or former spouse as a basis for repay
ment of the credit requested.
(3)
A creditor may request an applicant to list
any account upon which the applicant is liable
and to provide the name and address in which
such account is carried. A creditor may also ask
the names in which an applicant has previously
received credit.
(d) Information a creditor may not request. (1)
If an applicant applies for an individual, unse
cured account, a creditor shall not request the
applicant’s marital status, unless the applicant
resides in a community property State or prop
erty upon which the applicant is relying as a basis
for repayment of the credit requested is located
in such a State.5*Where an application is for other
than individual, unsecured credit, a creditor may
request an applicant’s marital status. Only the
terms “married,” “unmarried,” and “separated”
shall be used, and a creditor may explain that
the category “unmarried” includes single, di
vorced, and widowed persons.
(2)
A creditor shall not inquire whether any
income stated in an application is derived from
alimony, child support, or separate maintenance
payments, unless the creditor appropriately dis
closes to the applicant that such income need not
be revealed if the applicant does not desire the
creditor to consider such income in determining
the applicant’s creditworthiness. Since a general
inquiry about income, without further specifica
tion, may lead an applicant to list alimony, child
support, or separate maintenance payments, a
creditor shall provide an appropriate notice to an
applicant before inquiring about the source of an
applicant’s income, unless the terms of the inquiry
(such as an inquiry about salary, wages, invest
ment income, or similarly specified income) tend
to preclude the unintentional disclosure of ali
5 This provision does not preclude requesting relevant
information that may indirectly disclose marital status,
such as asking about liability to pay alimony, child sup
port, or separate maintenance; the source of income to be
used as a basis for the repayment of the credit requested,
which may disclose that it is a spouse's income; whether
any obligation disclosed by the applicant has a co-obligor,
which may disclose that the co-obligor is a spouse or
former spouse; or the ownership of assets, which may
disclose the interest of a spouse, when such assets are
relied upon in extending the credit. Such inquiries are
allowed by the general rule of subsection (b)(1).

§ 2 0 2 .6

R E G U L A T IO N B

mony, child support, or separate maintenance
payments.
(3) A creditor shall not request the sex of an
applicant. An applicant may be requested to desig
nate a title on an application form (such as Ms.,
Miss, Mr., or Mrs.) if the form appropriately
discloses that the designation of such a title is
optional. An application form shall otherwise use
only terms that are neutral as to sex.
(4) A creditor shall not request information
about birth control practices, intentions concern
ing the bearing or rearing of children, or capa
bility to bear children. This does not preclude a
creditor from inquiring about the number and
ages of an applicant’s dependents or about
dependent-related financial obligations or expendi
tures, provided such information is requested with
out regard to sex, marital status, or any other
prohibited basis.
(5) A creditor shall not request the race, color,
religion, or national origin of an applicant or any
other person in connection with a credit trans
action. A creditor may inquire, however, as to
an applicant’s permanent residence and immigra
tion status.
(e) Application forms. A creditor need not use
written applications. If a creditor chooses to use
written forms, it may design its own,': use forms
prepared by another person, or use the appropri
ate model application forms contained in Appen
dix B. If a creditor chooses to use an Appendix
B form, it may change the form:
(1) by asking for additional information not
prohibited by this section;
(2) by deleting any information request; or
(3) by rearranging the format without modify
ing the substance of the inquiries; provided that
in each of these three instances the appropriate
notices regarding the optional nature of courtesy
titles, the option to disclose alimony, child sup
port, or separate maintenance, and the limitation
concerning marital status inquiries are included
in the appropriate places if the items to which
they relate appear on the creditor's form. If a
creditor uses an appropriate Appendix B model
form or to the extent that it modifies such a form

in accordance with the provisions of clauses (2)
or (3) of the preceding sentence or the instruc
tions to Appendix B, that creditor shall be deemed
to be acting in compliance with the provisions of
subsections (c) and (d).

SECTION 202.6—RULES CONCERNING
EVALUATION OF APPLICATIONS
(a) General rule concerning use of information.
Except as otherwise provided in the Act and this
Part, a creditor may consider in evaluating an ap
plication any information that the creditor obtains,
so long as the information is not used to dis
criminate against an applicant on a prohibited
basis.*2878
(b) Specific rules concerning use of information.
(1) Except as provided in the Act and this Part,
a creditor shall not take a prohibited basis into
account in any system of evaluating the creditworthiness of applicants.'
(2)(i) Except as permitted in this subsection, a
creditor shall not take into account an applicant’s
age (provided that the applicant has the capacity
to enter into a binding contract) or whether an
applicant's income derives from any public assist
ance program.
(ii) In a demonstrably and statistically sound,
empirically derived credit system, a creditor may
use an applicant’s age as a predictive variable,
provided that the age of an elderly applicant is
not assigned a negative factor or value.
(iii) In a judgmental system of evaluating
creditworthiness, a creditor may consider an ap
plicant’s age or whether an applicant’s income
derives from any public assistance program only
7 The legislative history of the Act indicates that the
Congress intended an “effects test” concept, as outlined
in the employment field by the Supreme Court in the
cases of Griggs v. Duke Power Co., 401 U.S. 424 (1971),
and Albemarle Paper Co. v. M oody, 422 U.S. 405 (1975),
to be applicable to a creditor’s determination of creditworthiness. See Senate Report to accompany H.R. 6516,
No. 94-589, pp. 4-5; House Report to accompany H.R
6516, No. 94-210, p. 5.
8 This provision does not prevent a creditor from con
sidering the marital status of an applicant or the source
of an applicant’s income for the purpose of ascertaining
the creditor’s rights and remedies applicable to the par
ticular extension of credit and not to discriminate in a
determination of creditworthiness. Furthermore, a pro
hibited basis may be considered in accordance with sec
tion 202.8 (special purpose credit programs).

A creditor also may continue to use any application
form that complies with the requirements of the October
28, 1975 version of Regulation B until its present stock
of those forms is exhausted or until March 23, 1978,
whichever occurs first. The provisions of this Part shall
not determine and are not evidence of the meaning of
the requirements of the previous version of Regulation B.

R E G U L A T IO N B

§ 2 0 2 .7

for the purpose of determining a pertinent ele
but are not limited to, whether the payments are
ment of creditworthiness.”
received pursuant to a written agreement or court
(iv)
In any system of evaluating creditworthidecree; the length of time that the payments have
been received; the regularity of receipt; the avail
ness, a creditor may consider the age of an elderly
ability of procedures to compel payment; and the
applicant when such age is to be used to favor
creditworthiness of the payor, including the credit
the elderly applicant in extending credit.
history of the payor where available to the credi
(3) A creditor shall not use, in evaluating the
tor under the Fair Credit Reporting Act or other
creditworthiness of an applicant, assumptions or
applicable laws.
aggregate statistics relating to the likelihood that
(6) To the extent that a creditor considers credit
any group of persons will bear or rear children
history in evaluating the creditworthiness of sim
or, for that reason, will receive diminished or
ilarly qualified applicants for a similar type and
interrupted income in the future.
amount
of credit, in evaluating an applicant’s
(4) A creditor shall not take into account the
creditworthiness,
a creditor shall consider (unless
existence of a telephone listing in the name of
the
failure
to
consider
results from an inadvertent
an applicant for consumer credit. A creditor may
error):
take into account the existence of a telephone in
(i) the credit history, when available, of ac
the residence of such an applicant.
counts designated as accounts that the applicant
(5) A creditor shall not discount or exclude
and a spouse are permitted to use or for which
from consideration the income of an applicant or
both are contractually liable;
the spouse of the applicant because of a prohib
(ii) on the applicant’s request, any informa
ited basis or because the income is derived from
tion
that the applicant may present tending to
part-time employment, or from an annuity, pen
indicate that the credit history being considered
sion, or other retirement benefit; but a creditor
by the creditor does not accurately reflect the
may consider the amount and probable continu
applicant’s creditworthiness; and
ance of any income in evaluating an applicant’s
(iii) on the applicant’s request, the credit
creditworthiness. Where an applicant relies on
history, when available, of any account reported
alimony, child support, or separate maintenance
in the name of the applicant’s spouse or former
payments in applying for credit, a creditor shall
spouse that the applicant can demonstrate accu
consider such payments as income to the extent
rately reflects the applicant’s creditworthiness.
that they are likely to be consistently made. Fac
tors that a creditor may consider in determining
(7) A creditor may consider whether an appli
the likelihood of consistent payments include,9 cant is a permanent resident of the United States,
the applicant’s immigration status, and such addi
9 Concerning income derived from a public assistance tional information as may be necessary to ascer
program, a creditor may consider, for example, the length
tain its rights and remedies regarding repayment.
of time an applicant has been receiving such income;
whether an applicant intends to continue to reside in the
(c) State property laws. A creditor’s considera
jurisdiction in relation to residency requirements for
tion
or application of State property laws directly
benefits; and the status of an applicant's dependents to
or indirectly affecting creditworthiness shall not
ascertain whether benefits that the applicant is presently
receiving will continue.
constitute unlawful discrimination for the purposes
Concerning age, a creditor may consider, for example,
of
the Act or this Part.
the occupation and length of time to retirement of an
applicant to ascertain whether the applicant’s income
(including retirement income, as applicable) will support
the extension of credit until its maturity; or the adequacy
of any security offered if the duration of the credit
extension will exceed the life expectancy of the applicant.
An elderly applicant might not qualify for a five-percent
down, 30-year mortgage loan because the duration of the
loan exceeds the applicant’s life expectancy and the cost
of realizing on the collateral might exceed the applicant’s
equity. The same applicant might qualify with a larger
downpayment and a shorter loan maturity. A creditor
could also consider an applicant’s age, for example, to
assess the significance of the applicant’s length of em
ployment or residence (a young applicant may have just
entered the job market; an elderly applicant may recently
have retired and moved from a long-time residence).

SECTION 202.7—RULES CONCERNING
EXTENSIONS OF CREDIT
(a) Individual accounts. A creditor shall not
refuse to grant an individual account to a credit
worthy applicant on the basis of sex, marital
status, or any other prohibited basis.
(b) Designation of name. A creditor shall not
prohibit an applicant from opening or maintaining

§ 2 0 2 .7

R E G U L A T IO N B

an account in a birth-given first name and a sur
name that is the applicant’s birth-given surname,
the spouse’s surname, or a combined surname.
(c) Action concerning existing open end ac
counts. (1) In the absence of evidence of inability
or unwillingness to repay, a creditor shall not take
any of the following actions regarding an appli
cant who is contractually liable on an existing
open end account on the basis of the applicant’s
reaching a certain age or retiring, or on the basis
of a change in the applicant’s name or marital
status:
(i) require a reapplication; or
(ii) change the terms of the account; or
(iii) terminate the account.
(2)
A creditor may require a reapplication re
garding an open end account on the basis of a
change in an applicant’s marital status where the
credit granted was based on income earned by the
applicant’s spouse if the applicant’s income alone
at the time of the original application would not
support the amount of credit currently extended.
(d) Signature of spouse or other person. (1)
Except as provided in this subsection, a creditor
shall not require the signature of an applicant’s
spouse or other person, other than a joint appli
cant, on any credit instrument if the applicant
qualifies under the creditor’s standards of creditworthiness for the amount and terms of the credit
requested.
(2) If an applicant requests unsecured credit
and relies in part upon property to establish
creditworthiness, a creditor may consider State
law; the form of ownership of the property; its
susceptibility to attachment, execution, severance,
and partition; and other factors that may affect
the value to the creditor of the applicant’s interest
in the property. If necessary to satisfy the credi
tor’s standards of creditworthiness, the creditor
may require the signature of the applicant's spouse
or other person on any instrument necessary, or
reasonably believed by the creditor to be neces
sary, under applicable State law to make the prop
erty relied upon available to satisfy the debt in the
event of default.
(3) If a married applicant requests unsecured
credit and resides in a community property State
or if the property upon which the applicant is
relying is located in such a State, a creditor may
require the signature of the spouse on any instru
ment necessary, or reasonably believed by the

creditor to be necessary, under applicable State
law to make the community property available to
satisfy the debt in the event of default if:
(i) applicable State law denies the applicant
power to manage or control sufficient community
property to qualify for the amount of credit re
quested under the creditor’s standards of creditworthiness; and
(ii) the applicant does not have sufficient
separate property to qualify for the amount of
credit requested without regard to community
property.
(4) If an applicant requests secured credit, a
creditor may require the signature of the appli
cant’s spouse or other person on any instrument
necessary, or reasonably believed by the creditor
to be necessary, under applicable State law to
make the property being offered as security avail
able to satisfy the debt in the event of default, for
example, any instrument to create a valid lien,
pass clear title, waive inchoate rights, or assign
earnings.
(5) If, under a creditor’s standards of creditworthiness, the personal liability of an additional
party is necessary to support the extension of the
credit requested,10 a creditor may request that the
applicant obtain a co-signer, guarantor, or the like.
The applicant’s spouse may serve as an additional
party, but a creditor shall not require that the
spouse be the additional party. For the purposes
of subsection (d), a creditor shall not impose re
quirements upon an additional party that the
creditor may not impose upon an applicant.
(e)
Insurance. Differentiation in the availability,
rates, and terms on which credit-related casualty
insurance or credit life, health, accident, or dis
ability insurance is offered or provided to an
applicant shall not constitute a violation of the
Act or this Part; but a creditor shall not refuse to
extend credit and shall not terminate an account
because credit life, health, accident, or disability
insurance is not available on the basis of the
applicant's age. Notwithstanding any other pro
vision of this Part, information about the age, sex,
or marital status of an applicant may be requested
in an application for insurance.
If an applicant requests individual credit relying on
the separate income of another person, a creditor may
require the signature of the other person to make the
income available to pay the debt.

§ 202.8

R E G U L A T IO N B

SECTION 202.8—SPECIAL PURPOSE
CREDIT PROGRAMS

from a public assistance program, or good faith
exercise of any right under the Consumer Credit
Protection Act or any State law upon which an
exemption has been granted therefrom by the
Board; except that all program participants may
be required to share one or more of those char
acteristics so long as the program was not estab
lished and is not administered with the purpose of
evading the requirements of the Act or this Part.
(c) Special rule concerning requests and use of
information. If all participants in a special pur
pose credit program described in subsection (a) are
or will be required to possess one or more com
mon characteristics relating to race, color, religion,
national origin, sex, marital status, age, or receipt
of income from a public assistance program and if
the special purpose credit program otherwise satis
fies the requirements of subsection (a), then, not
withstanding the prohibitions of sections 202.5
and 202.6, the creditor may request of an appli
cant and may consider, in determining eligibility
for such program, information regarding the com
mon characteristics required for eligibility. In
such circumstances, the solicitation and considera
tion of that information shall not constitute un
lawful discrimination for the purposes of the Act
or this Part.
(d) Special rule in the case of financial need. If
financial need is or will be one of the criteria for
the extension of credit under a special purpose
credit program described in subsection (a), then,
notwithstanding the prohibitions of sections 202.5
and 202.6, the creditor may request and consider,
in determining eligibility for such program, in
formation regarding an applicant’s marital status,
income from alimony, child support, or separate
maintenance, and the spouse’s financial resources.
In addition, notwithstanding the prohibitions of
section 202.7(d), a creditor may obtain the signa
ture of an applicant’s spouse or other person on
an application or credit instrument relating to a
special purpose program if required by Federal or
State law. In such circumstances, the solicitation
and consideration of that information and the ob
taining of a required signature shall not constitute
unlawful discrimination for the purposes of the
Act or this Part.

(a) Standards for programs. Subject to the pro
visions of subsection (b), the Act and this Part are
not violated if a creditor refuses to extend credit
to an applicant solely because the applicant does
not qualify under the special requirements that
define eligibility for the following types of special
purpose credit programs:
(1) any credit assistance program expressly au
thorized by Federal or State law for the benefit of
an economically disadvantaged class of persons; or
(2) any credit assistance program offered by a
not-for-profit organization, as defined under sec
tion 501(c) of the Internal Revenue Code of 1954,
as amended, for the benefit of its members or for
the benefit of an economically disadvantaged class
of persons; or
(3) any special purpose credit program offered
by a for-profit organization or in which such an
organization participates to meet special social
needs, provided that:
(i) the program is established and adminis
tered pursuant to a written plan that (A) identi
fies the class or classes of persons that the pro
gram is designed to benefit and (B) sets forth the
procedures and standards for extending credit pur
suant to the program; and
(ii) the program is established and adminis
tered to extend credit to a class of persons who,
pursuant to the customary standards of creditworthiness used by the organization extending the
credit, either probably would not receive such
credit or probably would receive it on less favor
able terms than are ordinarily available to other
applicants applying to the organization for a
similar type and amount of credit.
(b) Applicability of other rules. (1) All of the
provisions of this Part shall apply to each of the
special purpose credit programs described in sub
section (a) to the extent that those provisions are
not inconsistent with the provisions of this section.
(2) A program described in subsections (a)(2) or
(a)(3) shall qualify as a special purpose credit pro
gram under subsection (a) only if it was estab
lished and is administered so as not to discrimi
nate against an applicant on the basis of race,
color, religion, national origin, sex, marital status,
age (provided that the applicant has the capacity
to enter into a binding contract), income derived

SECTION 202.9—NOTIFICATIONS
(a)
Notification of action taken, ECOA notice,
and statement of specific reasons.
13

§ 2 0 2 .9

R E G U L A T IO N B

(1) Notification of action taken. A creditor shall
notify an applicant of action taken within:
(i) 30 days after receiving a completed ap
plication concerning the creditor’s approval of,
or adverse action regarding, the application (noti
fication of approval may be express or by impli
cation, where, for example, the applicant receives
a credit card, money, property, or services in
accordance with the application);
(ii) 30 days after taking adverse action on
an uncompleted application;
(iii) 30 days after taking adverse action re
garding an existing account; and
(iv) 90 days after the creditor has notified
the applicant of an offer to grant credit other than
in substantially the amount or on substantially the
terms requested by the applicant if the applicant
during those 90 days has not expressly accepted
or used the credit offered.
(2) Content of notification. Any notification
given to an applicant against whom adverse action
is taken shall be in writing and shall contain: a
statement of the action taken; a statement of the
provisions of section 701(a) of the Act; the name
and address of the Federal agency that admin
isters compliance concerning the creditor giving
the notification; and
(i) a statement of specific reasons for the
action taken; or
(ii) a disclosure of the applicant’s right to
a statement of reasons within 30 days after receipt
by the creditor of a request made within 60 days
of such notification, the disclosure to include the
name, address, and telephone number of the
person or office from which the statement of
reasons can be obtained. If the creditor chooses
to provide the statement of reasons orally, the
notification shall also include a disclosure of the
applicant’s right to have any oral statement of
reasons confirmed in writing within 30 days after
a written request for confirmation is received by
the creditor.
(3) Multiple applicants. If there is more than
one applicant, the notification need only be given
to one of them, but must be given to the primary
applicant where one is readily apparent.
(4) Multiple creditors. If a transaction involves
more than one creditor and the applicant expressly
accepts or uses the credit offered, this section does
not require notification of adverse action by any
creditor. If a transaction involves more than one

creditor and either no credit is offered or the
applicant does not expressly accept or use any
credit offered, then each creditor taking adverse
action must comply with this section. The re
quired notification may be provided indirectly
through a third party, which may be one of the
creditors, provided that the identity of each cred
itor taking adverse action is disclosed. When
ever the notification is to be provided through a
third party, a creditor shall not be liable for any
act or omission of the third party that constitutes
a violation of this section if the creditor accu
rately and in a timely manner provided the third
party with the information necessary for the
notification and was maintaining procedures rea
sonably adapted to avoid any such violation.
(b)
Form of ECOA notice and statement of
specific reasons.
(1) ECOA notice. A creditor satisfies the re
quirements of subsection (a)(2) regarding a state
ment of the provisions of section 701(a) of the
Act and the name and address of the appropriate
Federal enforcement agency if it provides the
following notice, or one that is substantially sim
ilar:

The Federal Equal Credit Opportunity Act pro
hibits creditors from discriminating against credit
applicants on the basis of race, color, religion, na
tional origin, sex, marital status, age (provided
that the applicant has the capacity to enter into
a binding contract); because all or part of the
applicant’s income derives from any public assist
ance program; or because the applicant has in
good faith exercised any right under the Consumer
Credit Protection Act. The Federal agency that
administers compliance with this law concerning
this creditor is (name and address as specified by
the appropriate agency listed in Appendix A).
The sample notice printed above may be mod
ified immediately following the required references
to the Federal Act and enforcement agency to in
clude references to any similar State statute or
regulation and to a State enforcement agency.
(2) Statement of specific reasons. A statement
of reasons for adverse action shall be sufficient
if it is specific and indicates the principal rea
sons) for the adverse action. A creditor may
formulate its own statement of reasons in check
list or letter form or may use all or a portion of
the sample form printed below, which, if properly
completed, satisfies the requirements of subsection
(a)(2)(i). Statements that the adverse action was
based on the creditor’s internal standards or pol
14

R E G U L A T IO N B

§ 2 0 2 .9

Street address:

icies or that the applicant failed to achieve the
qualifying score on the creditor’s credit scoring
system are insufficient.

Telephone number: __________________
___ Information obtained from an outside source
other than a consumer reporting agency.
Under the Fair Credit Reporting Act, you
have the right to make a written request,
within 60 days of receipt of this notice, for
disclosure of the nature of the adverse in
formation.
Creditor’s name: ____________________
Creditor’s address:___________________

STATEMENT OF CREDIT DENIAL,
TERMINATION, OR CHANGE
DATE _____________
Applicant’s Name: -------------------------------Applicant’s Address: --------------------------------Description of Account, Transaction, or Requested
Credit:___________ —------------------------------

Creditor’s telephone number: __________
[Add ECOA Notice]

Description of Adverse Action Taken:

(3) Other information. The notification re
quired by subsection (a)(1) may include other
information so long as it does not detract from
the required content. This notification also may
be combined with any disclosures required under
other titles of the Consumer Credit Protection Act
or any other law, provided that all requirements
for clarity and placement are satisfied; and it may
appear on either or both sides of the paper if
there is a clear reference on the front to any
information on the back.
(c) Oral notifications. The applicable require
ments of this section are satisfied by oral notifica
tions (including statements of specific reasons) in
the case of any creditor that did not receive more
than' 150 applications during the calendar year
immediately preceding the calendar year in which
the notification of adverse action is to be given to
a particular applicant.
fd) Withdrawn applications. Where an applicant
submits an application and the parties contemplate
that the applicant will inquire about its status, if
the creditor approves the application and the appli
cant has not inquired within 30 days after apply
ing, then the creditor may treat the application as
withdrawn and need not comply with subsection
(a)(1).
(e) Failure of compliance. A failure to comply
with this section shall not constitute a violation
when caused by an inadvertent error; provided
that, on discovering the error, the creditor cor
rects it as soon as possible and commences com
pliance with the requirements of this section.
(f) Notification. A creditor notifies an applicant
when a writing addressed to the applicant is deliv

PRINCIPAL REASON(S) FOR ADVERSE
ACTION CONCERNING CREDIT
___ Credit application incomplete
___ Insufficient credit references
___ Unable to verify credit references
___ Temporary or irregular employment
___ Unable to verify employment
___ Length of employment
-----Insufficient income
___ Excessive obligations
___ Unable to verify income
___ Inadequate collateral
___ Too short a period of residence
----- Temporary residence
___ Unable to verify residence
----- No credit file
___ Insufficient credit file
---- . Delinquent credit obligations
----- Garnishment, attachment, foreclosure, repos
session, or suit
-----Bankruptcy
___ We do not grant credit to any applicant on
the terms and conditions you request.
----- Other, specify: --- -----------------------------

DISCLOSURE OF USE OF INFORMATION
OBTAINED FROM AN OUTSIDE SOURCE
___ Disclosure inapplicable
___Information obtained in a report from a con
sumer reporting agency
Name: ________... ---------------------------

§ 202.10

R E G U L A T IO N B

ered or mailed to the applicant’s last known ad
dress or, in the case of an oral notification, when
the creditor communicates with the applicant.

(ii) designate any such account to reflect
the fact of participation of both spouses;1123 and
(iii) comply with the reporting requirements
of subsections (a)(2) and (a)(3); or
(2)
mail or deliver to all applicants, or all
married applicants, in whose name an account is
carried on the creditor’s records one copy of the
notice set forth below.14*The notice may be mailed
with a billing statement or other mailing. All such
notices shall be mailed or delivered by October 1,
1977. As to open end accounts, this requirement
may be satisfied by mailing one notice at any time
prior to October 2, 1977, regarding each account
for which a billing statement is sent between June
1 and October 1, 1977. The notice may be supple
mented as necessary to permit identification of
the account by the creditor or by a consumer re
porting agency. A creditor need only send notices
relating to those accounts on which it lacks the
information necessary to make the proper desig
nation regarding participation or contractual liabil
ity.

SECTION 202.10—FURNISHING OF
CREDIT INFORMATION
(a) Accounts established on or after June 1,
1977. (1) For every account established on or
after June 1, 1977, a creditor that furnishes credit
information shall:
(i) determine whether an account offered by
the creditor is one that an applicant’s spouse is
permitted to use or upon which the spouses are
contractually liable other than as guarantors, sure
ties, endorsers, or similar parties; and
(ii) designate any such account to reflect the
fact of participation of both spouses.11
(2) Except as provided in subsection (3), if
a creditor furnishes credit information concerning
an account designated under this section (or desig
nated prior to the effective date of this Part) to a
consumer reporting agency, it shall furnish the
information in a manner that will enable the
agency to provide access to the information in the
name of each spouse.
(3) If a creditor furnishes credit information
concerning an account designated under this sec
tion (or designated prior to the effective date of
this Part) in response to an inquiry regarding a
particular applicant, it shall furnish the informa
tion in the name of the spouse about whom such
information is requested.r(b) Accounts established prior to June 1, 1977.
For every account established prior to and in
existence on June 1, 1977, a creditor that fur
nishes credit information shall either:
(1) not later than June 1, 1977
(i) determine whether the account is one
that an applicant’s spouse, if any, is permitted to
use or upon which the spouses are contractually
liable other than as guarantors, sureties, endorsers,
or similar parties;

NOTICE
CREDIT HISTORY FOR MARRIED PERSONS
The Federal Equal Credit Opportunity Act pro
hibits credit discrimination on the basis of race,
color, religion, national origin, sex, marital status,
age (provided that a person has the capacity to
enter into a binding contract); because all or
part of a person’s income derives from any pub
lic assistance program; or because a person in
good faith has exercised any right under the Fed
eral Consumer Credit Protection Act. Regulations
under the Act give married persons the right to
have credit information included in credit reports
in the name of both the wife and the husband
if both use or are responsible for the account.
This right was created, in part, to insure that
credit histories will be available to women who
become divorced or widowed.
If your account with us is one that both hus
band and wife signed for or is an account that
is being used by one of you who did not sign,
then you are entitled to have us report credit

11A creditor need not distinguish between participa
tion as a user or as a contractually liable party.
12 If a creditor learns that new parties have under
taken payment on an account, then the subsequent his
tory of the account shall be furnished in the names of
the new parties and need not continue to be furnished
in the names of the former parties.

13 See footnote 11.
11A creditor may delete the references to the “use”
of an account when providing notices regarding closed
end accounts.
16

§ 202.11

R E G U L A T IO N B

information relating to the account in both your
names. If you choose to have credit information
concerning your account with us reported in both
your names, please complete and sign the state
ment below and return it to us.
Federal regulations provide that signing your
name below will not change your or your spouse’s
legal liability on the account. Your signature will
only request that credit information be reported
in both your names.
If you do not complete and return the form
below, we will continue to report your credit
history in the same way that we do now.

SECTION 202.11—RELATION TO
STATE LAW
(a) Inconsistent State laws. Except as otherwise
provided in this section, this Part alters, affects,
or preempts only those State laws that are incon
sistent with this Part and then only to the extent
of the inconsistency. A State law is not incon
sistent with this Part if it is more protective of an
applicant.
(b) Preempted provisions of State law. (1) State
law is deemed to be inconsistent with the require
ments of the Act and this Part and less protective
of an applicant within the meaning of section
705(f) of the Act to the extent that such law:
(i) requires or permits a practice or act pro
hibited by the Act or this Part;
(ii) prohibits the individual extension of
consumer credit to both parties to a marriage if
each spouse individually and voluntarily applies
for such credit;
(iii) prohibits inquiries or collection of data
required to comply with the Act or this Part;
(iv) prohibits asking age or considering age
in a demonstrably and statistically sound, empiri
cally derived credit system, to determine a perti
nent element of creditworthiness, or to favor an
elderly applicant; or
(v) prohibits inquiries necessary to establish
or administer a special purpose credit program as
defined by section 202.8.
(2)
A determination as to whether a State law
is inconsistent with the requirements of the Act
and this Part will be made only in response to a
request for a formal Board interpretation. All
requests for such interpretations, in addition to
meeting the requirements of section 202.1(d),
shall comply with the applicable provisions of sub
sections (b)(1) and (2) of Supplement I to this
Part. A determination shall be based on the fac
tors enumerated in this subsection and, as appli
cable, subsection (c) of Supplement I. Notice of
the interpretation shall be provided as specified
in subsection (e)(1) of Supplement I, but the
interpretation shall be effective in accordance
with section 202.1. The interpretation shall be
subject to revocation or modification at any time,
as provided in subsection (g)(4) of Supplement I.
(c) Finance charges and loan ceilings. If mar
ried applicants voluntarily apply for and obtain
individual accounts with the same creditor, the

When you furnish credit information on this
account, please report all information concerning
the account in both our names.
Account number

Print or type name
Print or type name
Signature of either spouse

(c) Requests to change manner in which infor
mation is reported. Within 90 days after receipt
of a properly completed request to change the
manner in which information is reported to con
sumer reporting agencies and others regarding an
account described in subsection (b), a creditor
shall designate the account to reflect the fact of
participation of both spouses.15 When furnishing
information concerning any such account, the
creditor shall comply with the reporting require
ments of subsections (a)(2) and (a)(3). The sig
nature of an applicant or the applicant’s spouse on
a request to change the manner in which infor
mation concerning an account is furnished shall
not alter the legal liability of either spouse upon
the account or require the creditor to change the
name in which the account is carried.
(d) Inadvertent errors. A failure to comply with
this section shall not constitute a violation when
caused by an inadvertent error; provided that, on
discovering the error, the creditor corrects it as
soon as possible and commences compliance with
the requirements of this section.
15 See footnote 11.

§ 2 0 2 .1 2

R E G U L A T IO N B

accounts shall not be aggregated or otherwise com
bined for purposes of determining permissible
finance charges or permissible loan ceilings under
any Federal or State law. Permissible loan ceiling
laws shall be construed to permit each spouse to
become individually liable up to the amount of
the loan ceilings, less the amount for which the
applicant is jointly liable.10
(d) State and Federal laws not affected. This
section does not alter or annul any provision of
State property laws, laws relating to the disposi
tion of decedents’ estates, or Federal or State
banking regulations directed only toward insuring
the solvency of financial institutions.
(e) Exemption for State regulated transactions.
(1) In accordance with the provisions of Supple
ment I to this Part, any State may apply to the
Board for an exemption from the requirements
of sections 701 and 702 of the Act and the cor
responding provisions of this Part for any class
of credit transactions within the State. The Board
will grant such an exemption if:
(i) the Board determines that, under the law
of that State, that class of credit transactions is
subject to requirements substantially similar to
those imposed under sections 701 and 702 of the
Act and the corresponding provisions of this Part,
or that applicants are afforded greater protection
than is afforded under sections 701 and 702 of
the Act and the corresponding provisions of this
Part; and
(ii) there is adequate provision for State en
forcement.
(2)
In order to assure that the concurrent juris
diction of Federal and State courts created in
section 706(f) of the Act will continue to have
substantive provisions to which such jurisdiction
shall apply; to allow Federal enforcement agencies
to retain their authority regarding any class of
credit transactions exempted pursuant to subsec
tion (e)(1) and Supplement I; and. generally, to aid
in implementing the Act:
(i) no such exemption shall be deemed to
extend to the civil liability provisions of sections
706 or the administrative enforcement provisions
of section 704 of the Act; and
(ii) after an exemption has been granted, the
requirements of the applicable State law shall
10 For example, in a State with a permissible loan
ceiling of $1,000, if a married couple were jointly liable
for unpaid debt in the amount of $250, each spouse
could subsequently become individually liable for $750.

constitute the requirements of the Act and this
Part, except to the extent such State law imposes
requirements not imposed by the Act or this Part.
(3)
Exemptions granted by the Board to par
ticular classes of credit transactions within speci
fied States will be set forth in Supplement II to
this Part.
SECTION 202.12—RECORD RETENTION
(a) Retention of prohibited information. Reten
tion in a creditor’s files of any information, the
use of which in evaluating applications is pro
hibited by the Act or this Part, shall not constitute
a violation of the Act or this Part where such
information was obtained:
(1) from any source prior to March 23, 1977;17
or
(2) at any time from consumer reporting agen
cies; or
(3) at any time from an applicant or others
without the specific request of the creditor; or
(4) at any time as required to monitor compli
ance with the Act and this Part or other Federal
or State statutes or regulations.
(b) Preservation of records. (1) For 25 months
after the date that a creditor notifies an applicant
of action taken on an application, the creditor
shall retain as to that application in original form
or a copy thereof:18
(i) any application form that it receives, any
information required to be obtained concerning
characteristics of an applicant to monitor com
pliance with the Act and this Part or other similar
law, and any other written or recorded informa
tion used in evaluating the application and not re
turned to the applicant at the applicant’s request;
(ii) a copy of the following documents if
furnished to the applicant in written form (or, if
furnished orally, any notation or memorandum
with respect thereto made by the creditor):
(A) the notification of action taken; and
17 Pursuant to the October 28, 1975 version of Regu
lation B, the applicable date for sex and marital status
information is June 30, 1976.
18 “A copy thereof” includes carbon copies, photo
copies, microfilm or microfiche copies, or copies pro
duced by any accurate information retrieval system. A
creditor who uses a computerized or mechanized system
need not keep a written copy of a document if it can
regenerate the precise text of the document upon request.

§ 202.13

R E G U L A T IO N B

(B)
the statement of specific reasons that
for receives an application for consumer credit
adverse action; and
relating to the purchase of residential real prop
(iii)
any written statement submitted by theerty, where the extension of credit is to be secured
applicant alleging a violation of the Act or this
by a lien on such property, shall request as part
Part.
of any written application for such credit the
(2) For 25 months after the date that a creditor
following information regarding the applicant and
notifies an applicant of adverse action regarding
joint applicant (if any):
an account, other than in connection with an
(i) race/national origin, using the categories
application, the creditor shall retain as to that
American Indian or Alaskan Native; Asian or
account, in original form or a copy thereof:19
Pacific Islander; Black; White; Hispanic; Other
(i) any written or recorded information con
(Specify);
cerning such adverse action; and
(ii) sex;
(ii) any written statement submitted by the
(iii) marital status, using the categories mar
applicant alleging a violation of the Act or this
ried,
unmarried, and separated; and
Part.
(iv)
age.
(3) In addition to the requirements of subsec
(2)
“Residential
real property” means improved
tions (b)(1) and (2), any creditor that has actual
real property used or intended to be used for
notice that it is under investigation or is subject
residential purposes, including single family
to an enforcement proceeding for an alleged vio
homes, dwellings for from two to four families,
lation of the Act or this Part by an enforcement
and individual units of condominiums and coop
agency charged with monitoring that creditor’s
eratives.
compliance with the Act and this Part, or that has
(b) Method of obtaining information. Questions
been served with notice of an action filed pur
regarding race/ national origin, sex, marital status,
suant to section 706 of the Act and sections
202.1(b) or (c) of this Part, shall retain the in
and age may be listed, at the creditor’s option,
either on the application form or on a separate
formation required in subsections (b)(1) and (2)
form that refers to the application.
until final disposition of the matter, unless an
earlier time is allowed by order of the agency or
(c) Disclosure to applicant and joint applicant.
court.
The applicant and joint applicant (if any) shall be
(4) In any transaction involving more than one
informed that the information regarding race/
creditor, any creditor not required to comply with
national origin, sex, marital status, and age is being
section 202.9 (notifications) shall retain for the
requested by the Federal government for the
time period specified in subsection (b) all written
purpose of monitoring compliance with Federal
or recorded information in its possession concern
anti-discrimination statutes and that those statutes
ing the applicant, including a notation of action
prohibit creditors from discriminating against ap
taken in connection with any adverse action.
plicants on those bases. The applicant and joint
applicant shall be asked, but not required, to
(c) Failure of compliance. A failure to comply
supply the requested information. If the applicant
with this section shall not constitute a violation
or joint applicant chooses not to provide the in
when caused by an inadvertent error.
formation or any part of it, that fact shall be
noted on the form on which the information is
SECTION 202.13—INFORMATION FOR
obtained.
MONITORING PURPOSES
(d) Substitute monitoring program. Any moni
(a) Scope and information requested. (1) For
toring program required by an agency charged
the purpose of monitoring compliance with the
with administrative enforcement under section 704
provisions of the Act and this Part, any creditor
of the Act may be substituted for the require
ments contained in subsections (a), (b), and (c).
See footnote 18.

§ 502

S T A T U T O R Y A P P E N D IX

STATUTORY APPENDIX

§ 701. Prohibited discrimination; reasons for ad
verse action*

Equal Credit Opportunity Act (as amended
March 23, 1976)

(a) It shall be unlawful for any creditor to dis
criminate against any applicant, with respect to
any aspect of a credit transaction—
(1) on the basis of race, color, religion, national
origin, sex or marital status, or age (provided the
applicant has the capacity to contract);
(2) because all or part of the applicant’s income
derives from any public assistance program; or
(3) because the applicant has in good faith exer
cised any right under the Consumer Credit Pro
tection Act.
(b) It shall not constitute discrimination for
purposes of this title for a creditor—
(1) to make an inquiry of marital status if such
inquiry is for the purpose of ascertaining the
creditor’s rights and remedies applicable to the
particular extension of credit and not to discrimi
nate in a determination of creditworthiness;
(2) to make an inquiry of the applicant’s age or
of whether the applicant’s income derives from
any public assistance program if such inquiry is
for the purpose of determining the amount and
probable continuance of income levels, credit
history, or other pertinent element of creditworthiness as provided in regulations of the
Board;
(3) to use any empirically derived credit system
wh^ch considers age if such system is demonstra
bly and statistically sound in accordance with
regulations of the Board, except that in the opera
tion of such system the age of an elderly applicant
may not be assigned a negative factor or value; or
(4) to make an inquiry or to consider the age
of an elderly applicant when the age of such ap
plicant is to be used by the creditor in the exten
sion of credit in favor of such applicant.
(c) It is not a violation of this section for a
creditor to refuse to extend credit offered pursuant
to—
(1) any credit assistance program expressly
authorized by law for an economically disad
vantaged class of persons;
(2) any credit assistance program adminis
tered by a nonprofit organization for its mem
bers or an economically disadvantaged class of
persons; or

TITLE V— PUBLIC LAW 93-495

Sec.
502.
503.

Findings and purpose.
Amendment to the Consumer Credit Pro
tection Act.

§ 502. Findings and purpose

The Congress finds that there is a need to insure
that the various financial institutions and other
firms engaged in the extensions of credit exercise
their responsibility to make credit available with
fairness, impartiality, and without discrimination
on the basis of sex or marital status. Economic
stabilization would be enhanced and competition
among the various financial institutions and other
firms engaged in the extension of credit would be
strengthened by an absence of discrimination on
the basis of sex or marital status, as well as by
the informed use of credit which Congress has
heretofore sought to promote. It is the purpose of
this Act to require that financial institutions and
other firms engaged in the extension of credit
make that credit equally available to all credit
worthy customers without regard to sex or marital
status.
§ 503. Amendment to the Consumer Credit Pro
tection Act

The Consumer Credit Protection Act (Public
Law 90-321) is amended by adding at the end
thereof a new title VII:
TITLE VII—EQUAL CREDIT OPPORTUNITY

Sec.
701.

Prohibited discrimination; reasons for ad
verse action.
702. Definitions.
703. Regulations.
704. Administrative enforcement.
705. Relation to State laws.
706. Civil liability.
707. Annual reports to Congress.
708. Effective date.
709. Short title.

* Effective date for amendments to section 701 is
March 23, 1977. All other amendments are effective upon
enactment.

S T A T U T O R Y A P P E N D IX

§ 702

(3)
any special purpose credit program of
fered by a profitmaking organization to meet
special social needs which meets standards pre
scribed in regulations by the Board;
if such refusal is required by or made pursuant
to such program.

requested. Such term does not include a refusal
to extend additional credit under an existing
credit arrangement where the applicant is delin
quent or otherwise in default, or where such
additional credit would exceed a previously estab
lished credit limit.

(d)(1) Within thirty days (or such longer rea
sonable time as specified in regulations of the
Board for any class of credit transaction) after
receipt of a completed application for credit, a
creditor shall notify the applicant of its action on
the application.
(2) Each applicant against whom adverse action
is taken shall be entitled to a statement of reasons
for such action from the creditor. A creditor satis
fies this obligation by—
(A) providing statements of reasons in writing
as a matter of course to applicants against whom
adverse action is taken; or
(B) giving written notification of adverse action
which discloses (i) the applicant’s right to a state
ment of reasons within thirty days after receipt by
the creditor of a request made within sixty days
after such notification, and (ii) the identity of the
person or office from which such statement may
be obtained. Such statement may be given orally
if the written notification advises the applicant of
his right to have the statement of reasons con
firmed in writing on written request.
(3) A statement of reasons meets the require
ments of this section only if it contains the specific
reasons for the adverse action taken.
(4) Where a creditor has been requested by a
third party to make a specific extension of credit
directly or indirectly to an applicant, the notifica
tion and statement of reasons required by this sub
section may be made directly by such creditor, or
indirectly through the third party, provided in
either case that the identity of the creditor is dis
closed.
(5) The requirements of paragraph (2), (3), or
(4) may be satisfied by verbal statements or noti
fications in the case of any creditor who did not
act on more than 150 applications during the cal
endar year preceding the calendar year in which
the adverse action is taken, as determined under
regulations of the Board.
(6) For purposes of this subsection, the term
“adverse action” means a denial or revocation of
credit, a change in the terms of an existing credit
arrangement, or a refusal to grant credit in sub
stantially the amount or on substantially the terms

§ 702. Definitions

(a) The definitions and rules of construction
set forth in this section are applicable for the pur
poses of this title.
(b) The term “applicant” means any person who
applies to a creditor directly for an extension, re
newal, or continuation of credit, or applies to a
creditor indirectly by use of an existing credit plan
for an amount exceeding a previously established
credit limit.
(c) The term “Board” refers to the Board of
Governors of the Federal Reserve System.
(d) The term “credit” means the right granted
by a creditor to a debtor to defer payment of debt
or to incur debt and defer its payment or to pur
chase property or services and defer payment
therefor.
(e) The term “creditor” means any person who
regularly extends, renews, or continues credit; any
person who regularly arranges for the extension,
renewal, or continuation of credit; or any assignee
of an original creditor who participates in the de
cision to extend, renew, or continue credit.
(f) The term “person” means a natural person,
a corporation, government or governmental sub
division or agency, trust, estate, partnership, co
operative, or association.
(g) Any reference to any requirement imposed
under this title or any provision thereof includes
reference to the regulations of the Board under
this title or the provision thereof in question.
§ 703. Regulations

(a) The Board shall prescribe regulations to
carry out the purposes of this title. These regula
tions may contain but are not limited to such
classifications, differentiation, or other provision,
and may provide for such adjustments and excep
tions for any class of transactions, as in the judg
ment of the Board are necessary or proper to ef
fectuate the purposes of this title, to prevent
circumvention or evasion thereof, or to facilitate
or substantiate compliance therewith. In particu
lar, such regulations may exempt from one or
more of the provisions of this title any class of
transactions not primarily for personal, family,
21

§ 704

STATUTORY APPENDIX

or household purposes, if the Board makes an
express finding that the application of such provi
sion or provisions would not contribute substan
tially to carrying out the purposes of this title.
Such regulations shall be prescribed as soon as
possible after the date of enactment of this Act,
but in no event later than the effective date of
this Act.
(b)
The Board shall establish a Consumer Ad
visory Council to advise and consult with it in the
exercise of its functions under the Consumer
Credit Protection Act and to advise and consult
with it concerning other consumer related matters
it may place before the Council. In appointing
the members of the Council, the Board shall seek
to achieve a fair representation of the interests of
creditors and consumers. The Council shall meet
from time to time at the call of the Board. Mem
bers of the Council who are not regular full-time
employees of the United States shall, while attend
ing meetings of such Council, be entitled to re
ceive compensation at a rate fixed by the Board,
but not exceeding $100 per day, including travel
time. Such members may be allowed travel ex
penses, including transportation and subsistence,
while away from their homes or regular place of
business.
§ 704. Administrative enforcement

(a) Compliance with the requirements imposed
under this title shall be enforced under:
(1) Section 8 of the Federal Deposit Insurance
Act, in the case of—
(A) national banks, by the Comptroller of the
Currency;
(B) member banks of the Federal Reserve Sys
tem (other than national banks), by the Board;
(C) banks insured by the Federal Deposit In
surance Corporation (other than members of the
Federal Reserve System), by the Board of Direc
tors of the Federal Deposit Insurance Corporation.
(2) Section 5(d) of the Home Owners’ Loan
Act of 1933, section 407 of the National Housing
Act, and sections 6 (i) and 17 of the Federal
Home Loan Bank Act, by the Federal Home Loan
Bank Board (acting directly or through the Fed
eral Savings and Loan Insurance Corporation), in
the case of any institution subject to any of those
provisions.
(3) The Federal Credit Union Act, by the Ad
ministrator of the National Credit Union Admin
istration with respect to any Federal Credit Union.

(4) The Acts to regulate commerce, by the In
terstate Commerce Commission with respect to
any common carrier subject to those Acts.
(5) The Federal Aviation Act of 1958, by the
Civil Aeronautics Board with respect to any air
carrier or foreign air carrier subject to that Act.
(6) The Packers and Stockyards Act, 1921 (ex
cept as provided in section 406 of that Act), by
the Secretary of Agriculture with respect to any
activities subject to that Act.
(7) The Farm Credit Act of 1971, by the Farm
Credit Administration with respect to any Federal
land bank, Federal land bank association. Federal
intermediate credit bank, and production credit
association.
(8) The Securities Exchange Act of 1934, by
the Securities and Exchange Commission with re
spect to brokers and dealers; and
(9) The Small Business Investment Act of
1958, by the Small Business Administration, with
respect to small business investment companies.
(b) For the purpose of the exercise by any
agency referred to in subsection (a) of its powers
under any Act referred to in that subsection, a
violation of any requirement imposed under this
title shall be deemed to be a violation of a require
ment imposed under that Act. In addition to its
powers under any provision of law specifically
referred to in subsection (a), each of the agencies
referred to in that subsection may exercise for
the purpose of enforcing compliance with any re
quirement imposed under this title, any other
authority conferred on it by law. The exercise of
the authorities of any of the agencies referred to
in subsection (a) for the purpose of enforcing
compliance with any requirement imposed under
this title shall in no way preclude the exercise of
such authorities for the purpose of enforcing com
pliance with any other provision of law not relat
ing to the prohibition of discrimination on the
basis of sex or marital status with respect to any
aspect of a credit transaction.
(c) Except to the extent that enforcement of
the requirements imposed under this title is spe
cifically committed to some other Government
agency under subsection (a), the Federal Trade
Commission shall enforce such requirements. For
the purpose of the exercise by the Federal Trade
Commission of its functions and powers under
the Federal Trade Commission Act, a violation
of any requirement imposed under this title shall
be deemed a violation of a requirement imposed

STATUTORY APPENDIX

§ 705

under that Act. All of the functions and powers
of the Federal Trade Commission under the Fed
eral Trade Commission Act are available to the
Commission to enforce compliance by any person
with the requirements imposed under this title,
irrespective of whether that person is engaged in
commerce or meets any other jurisdictional tests
in the Federal Trade Commission Act, including
the power to enforce any Federal Reserve Board
regulation promulgated under this title in the
same manner as if the violation had been a viola
tion of a Federal Trade Commission trade regu
lation rule.
(d)
The authority of the Board to issue regula
tions under this title does not impair the authority
of any other agency designated in this section to
make rules respecting its own procedures in en
forcing compliance with requirements imposed
under this title.
§ 705. Relation to State laws

(a) A request for the signature of both parties
to a marriage for the purpose of creating a valid
lien, passing clear title, waiving inchoate rights
to property, or assigning earnings, shall not con
stitute discrimination under this title: Provided,
however, That this provision shall not be con
strued to permit a creditor to take sex or marital
status into account in connection with the evalua
tion of creditworthiness of any applicant.
(b) Consideration or application of State prop
erty laws directly or indirectly affecting creditworthiness shall not constitute discrimination for
purposes of this title.
(c) Any provision of State law which prohibits
the separate extension of consumer credit to each
party to a marriage shall not apply in any case
where each party to a marriage voluntarily applies
for separate credit from the same creditor: Pro
vided , That in any case where such a State law is
so preempted, each party to the marriage shall be
solely responsible for the debt so contracted.
(d) When each party to a marriage separately
and voluntarily applies for and obtains separate
credit accounts with the same creditor, those ac
counts shall not be aggregated or otherwise com
bined for purposes of determining permissible
finance charges or permissible loan ceilings under
the laws of any State or of the United States.
(e) Where the same act or omission constitutes
a violation of this title and of applicable State
law, a person aggrieved by such conduct may

bring a legal action to recover monetary dam
ages either under this title or under such State
law, but not both. This election of remedies shall
not apply to court actions in which the relief
sought does not include monetary damages or to
administrative actions.
(f) This title does not annul, alter, or affect,
or exempt any person subject to the provisions
of this title from complying with, the laws of any
State with respect to credit discrimination, except
to the extent that those laws are inconsistent with
any provision of this title, and then only to the
extent of the inconsistency. The Board is author
ized to determine whether such inconsistencies
exist. The Board may not determine that any State
law is inconsistent with any provision of this title
if the Board determines that such law gives
greater protection to the applicant.
(g) The Board shall by regulation exempt from
the requirements of sections 701 and 702 of this
title any class of credit transactions within any
State if it determines that under the law of that
State that class of transactions is subject to re
quirements substantially similar to those imposed
under this title or that such law gives greater
protection to the applicant, and that there is ade
quate provision for enforcement. Failure to com
ply with any requirement of such State law in
any transaction so exempted shall constitute a
violation of this title for the purposes of section
706.
§ 706. Civil liability

(a) Any creditor who fails to comply with any
requirement imposed under this title shall be liable
to the aggrieved applicant for any actual dam
ages sustained by such applicant acting either in
an individual capacity or as a member of a class.
(b) Any creditor, other than a government or
governmental subdivision or agency, who fails to
comply with any requirement imposed under this
title shall be liable to the aggrieved applicant for
punitive damages in an amount not greater than
$10,000, in addition to any actual damages pro
vided in subsection (a), except that in the case
of a class action the total recovery under this sub
section shall not exceed the lesser of $500,000 or
1 per centum of the net worth of the creditor. In
determining the amount of such damages in any
action, the court shall consider, among other
relevant factors, the amount of any actual dam
ages awarded, the frequency and persistence of
23

§ 707

STATUTORY APPENDIX

failures of compliance by the creditor, the re
sources of the creditor, the number of persons ad
versely affected, and the extent to which the
creditor’s failure of compliance was intentional.
(c) Upon application by an aggrieved appli
cant, the appropriate United States district court
or any other court of competent jurisdiction may
grant such equitable and declaratory relief as is
necessary to enforce the requirements imposed
under this title.
(d) In the case of any successful action under
subsection (a), (b), or (c), the costs of the action,
together with a reasonable attorney’s fee as de
termined by the court, shall be added to any dam
ages awarded by the court under such subsection.
(e) No provision of this title imposing any
liability shall apply to any act done or omitted in
good faith in conformity with any official rule,
regulation, or interpretation thereof by the Board
or in conformity with any interpretation or ap
proval by an official or employee of the Federal
Reserve System duly authorized by the Board to
issue such interpretations or approvals under such
procedures as the Board may prescribe therefor,
notwithstanding that after such act or omission
has occurred, such rule, regulation, interpretation,
or approval is amended, rescinded, or determined
by judicial or other authority to be invalid for
any reason.
(f) Any action under this section may be
brought in the appropriate United States district
court without regard to the amount in controversy,
or in any other court of competent jurisdiction.
No such action shall be brought later than two
years from the date of the occurrence of the vio
lation, except that—
(1) whenever any agency having responsibility
for administrative enforcement under section
704 commences an enforcement proceeding
within two years from the date of the occur
rence of the violation,
(2) whenever the Attorney General com
mences a civil action under this section within
two years from the date of occurrence of the
violation,
then any applicant who has been a victim of the
discrimination which is the subject of such pro
ceeding or civil action may bring an action under
this section not later than one year after the com
mencement of that proceeding or action.
(g) The agencies having responsibility for ad
ministrative enforcement under section 704, if

unable to obtain compliance with section 701, are
authorized to refer the matter to the Attorney
General with a recommendation that an appro
priate civil action be instituted.
(h) When a matter is referred to the Attorney
General pursuant to subsection (g), or whenever
he has reason to believe that one or more cred
itors are engaged in a pattern or practice in viola
tion of this title, the Attorney General may bring
a civil action in any appropriate United States
district court for such relief as may be appropri
ate, including injunctive relief.
(i) No person aggrieved by a violation of this
title and by a violation of section 805 of the
Civil Rights Act of 1968 shall recover under this
title and section 812 of the Civil Rights Act of
1968, if such violation is based on the same trans
action.
(j) Nothing in this title shall be construed to
prohibit the discovery of a creditor’s credit grant
ing standards under appropriate discovery proce
dures in the court or agency in which an action or
proceeding is brought.
§ 707. Annual reports to Congress

Not later than February 1 of each year after
1976, the Board and the Attorney General shall,
respectively, make reports to the Congress con
cerning the administration of their functions under
this title, including such recommendations as the
Board and the Attorney General, respectively,
deem necessary or appropriate. In addition, each
report of the Board shall include its assessment
of the extent to which compliance with the re
quirements of this title is being achieved, and a
summary of the enforcement actions taken by
each of the agencies assigned administrative en
forcement responsibilities under section 704.
8 708. Effective date

This title takes effect upon the expiration of one
year after the date of its enactment. The amend
ments made by the Equal Credit Opportunity Act
Amendments of 1976 shall take effect on the date
of enactment thereof and shall apply to any viola
tion occurring on or after such date, except that
the amendments made to section 701 of the Equal
Credit Opportunity Act shall take effect 12 months
after the date of enactment.
8 709. Short title

This title may be cited as the “Equal Credit
Opportunity Act.”
24

APPEN DIX A

FEDERAL ENFORCEMENT AGENCIES

The following list indicates which Federal agency enforces Regulation B for particular classes of cred
itors. Any questions concerning a particular creditor should be directed to its enforcement agency.
Creditors Subject to Interstate Commerce Com
mission

National Banks

Comptroller of the Currency
Consumer Affairs Division
Washington, D.C. 20219

Office of Proceedings
Interstate Commerce Commission
Washington, D.C. 20523

State Member Banks

Creditors Subject to Packers and Stockyards Act

Federal Reserve Bank serving the district in which
the State member bank is located.

Nearest Packers and Stockyards Administration
area supervisor.

Nonmember Insured Banks

Small Business Investment Companies

Federal Deposit Insurance Corporation Regional
Director for the region in which the nonmember
insured bank is located.

U.S. Small Business Administration
1441 L Street, N.W.
Washington, D.C. 20416
Brokers and Dealers

Savings Institutions Insured by the FSLIC and
Members of the FHLB System (except for Savings
Banks insured by FDIC)

Securities and Exchange Commission
Washington, D.C. 20549

The Federal Home Loan Bank Board Supervisory
Agent in the district in which the institution is
located.

Federal Land Banks, Federal Land Bank Associa
tions, Federal Intermediate Credit Banks and
Production Credit Associations

Farm Credit Administration
490 L’Enfant Plaza, S.W.
Washington, D.C. 20578

Federal Credit Unions

Regional office of the National Credit Union Ad
ministration serving the area in which the Federal
credit union is located.

Retail, Department Stores, Consumer Finance
Companies, All Other Creditors, and All Nonbank
Credit Card Issuers (Creditors operating on a local

or regional basis should use the address of the
FTC Regional Office in which they operate.)
Federal Trade Commission
Equal Credit Opportunity
Washington, D.C. 20580

Creditors Subject to Civil Aeronautics Board

Director, Bureau of Enforcement
Civil Aeronautics Board
1825 Connecticut Avenue, N.W.
Washington, D.C. 20428

A PPE N D IX B

MODEL APPLICATION FORMS

This Appendix contains five model credit appli
cation forms, each designed for use in a particular
type of consumer credit transaction as indicated
by the bracketed caption on each form (which
should be removed prior to reproduction). The
first sample form is intended for use in open end,
unsecured transactions; the second for closed end,
secured transactions; the third for closed end
transactions, whether unsecured or secured; the
fourth for use in transactions involving commu
nity property or occurring in community prop
erty States; and the fifth for use in secured resi
dential real estate transactions. The real estate
form should be used only when a lender’s repre
sentative is available to assist an applicant in com
pleting the form.
The forms contained in this Appendix are
models; their use by creditors is optional. In all
instances, the use or modification of these forms
is governed by section 202.5(e) of this Part and
the directions contained in this Appendix.
In addition to deleting any information request
printed on the forms or rearranging their format,
as specified in section 202.5(e), a creditor is ex
pressly permitted to modify any of the model
forms contained in this Appendix by adding any
of the following three items:
(1) an inquiry about the names in which an
applicant has previously received credit as author
ized in section 202.5(c)(3);

2 6

(2) a request to designate a courtesy title as
authorized in section 202.5(d)(3); or
(3) an inquiry about an applicant’s permanent
residence and United States immigration status as
authorized by section 202.5(d)(5).
The fifth form contained in this Appendix, the
model residential real estate mortgage loan appli
cation, was prepared in conjunction with the Fed
eral Home Loan Mortgage Corporation and the
Federal National Mortgage Association. It is sub
stantially identical to the joint FHLMC
65/FNMA 1003 (Rev. 3/77) form, except for
type face and the inclusion on the FHLMC/
FNMA form of certain items required by the
Federal Home Loan Mortgage Corporation and
the Federal National Mortgage Association. If a
creditor wishes to participate in the secondary
mortgage market involving the Federal Home
Loan Mortgage Corporation, Federal National
Mortgage Association, or Government National
Mortgage Association, it should either modify the
model form as specified by the Federal Home
Loan Mortgage Corporation and Federal National
Mortgage Association or use form FHLMC
65/FNMA 1003 (Rev. 3/77) with supporting
schedule FHLMC 65A/FNMA 1003A. Use of
the FHLMC 65/FNMA 1003 (Rev. 3/77) form
constitutes full compliance with subsections (c)
and (d) of section 202.5 of this Part.

[Open end, unsecured credit]

CREDIT APPLICATION
IMPORTANT; Read these Directions before completing this Application.
If you are applying for an individual account in your own name and are relying on your own income or
assets and not the income or assets of another person as the basis for repayment of the credit requested,
complete only Sections A and D.
If you are applying for a joint account or an account that you and another person will use, complete
□ all
Sections, providing information in B about the joint applicant or user.
If you are applying for an individual account, but are relying on income from alimony, child support, or
□ separate
maintenance or on the income or assets of another person as the basis for repayment of the credit
requested, complete all Sections to the extent possible, providing information in B about the person on whose
alimony, support, or maintenance payments or income or assets you are relying.
SECTION A—INFORMATION REGARDING APPLICANT
Full Name (Last, First, Middle): .......................................................................................................................... Birthdate: / /
Present Street Address:
Years there:
Telephone:
City: ...............................................
Check
Appropriate
Box

□

Previous Street Address: ............
City: ............................................................... State: ............................. Zip: ..........................
Present Employer: ...........................................................................Years there: .................... Telephone:
Position or title: .............................................................................Name of supervisor: ...........................
Employer’s Address: ..................................
Previous Employer’s Address: ..................
Present net salary or commission: $
........ Per .......... ......... No. Dependents: ....... ........ Ages: ......
Alimony, child support, or separate maintenance income need not be revealed if you do not wish to have it considered as a basis
for repaying this obligation.
Alimony, child support, separate maintenance received under: court order □ written agreement □ oral understanding □
Other income: $

per

Source(s) of other income:

Is any income listed in this Section likely to be reduced in the next two years?
□ Yes (Explain in detail on a separate sheet.) No □
Have you ever received credit from us? ........................ When? ................................. Office: ..........................................................
Checking Account No.: .................................................................... Institution and Branch: .................................................................
Savings Account No.: ...................................................................... Institution and Branch: .................................................................
Name of nearest relative
not living with you: .......................................................................................................................... Telephone: ........................—— •
Relationship: ............................. Address: ...............................................................................................................................................
SECTION B—INFORMATION REGARDING JOINT APPLICANT, USER, OR OTHER PARTY (Use separate sheets if necessary.)
Full Name (Last, First, Middle): .......................................................................................................................... Birthdate:

Relationship to Applicant (if any): ............................................................................... ...........................................................................
Present Street Address: ............................................................................................................................................. Years there: ...........
City: ............................................................... State: ............................. Zip: ..................... Telephone: ...............................................
Social Security No.: ....................................................................... Driver’s License No.: ............................................................—....
Present Employer: .............................................................................Years there: .................... Telephone: ...........................................
Position or title: .............................................................................Name of supervisor: .................. - ...............-............. ...... .... .........
Employer’s Address: ...................................................................................................................................................................................
Previous Employer: .................................................................................................................................................. Years there: ...........
Previous Employer’s Address: ....................................................................................................................................................................
Present net salary or commission: $
per
. No. Dependents:
Ages:
Alimony, child support, or separate maintenance income need not be revealed if you do not wish to have it considered as a basis
for repaying this obligation.
Alimony, child support, separate maintenance received under: court order □ written agreement □ oral understanding □______
Other income: $

per .......................... . Source(s) of other income:

Is any income listed in this Section likely to be reduced in the next two years?
□ Yes (Explain in detail on a separate sheet.) □ No
Checking Account No.: .................................................................... Institution and Branch:
Savings Account No.: .................................................................... Institution and Branch:
Name of nearest relative not living
Telephone:
with Joint Applicant, User, or Other Party: ................................................................. .........
Relationship: ................................................................... Address: ....................................
SECTION C—MARITAL STATUS
(Do not complete If this is an application for an Individual account.)
Applicant: □ Married
□ Separated
□ Unmarried (including single, divorced, and widowed)
Other Party: □ Married
□ Separated
□ Unmarried (including single, divorced, and widowed)

SECTION D —ASSET AND DEBT INFORMATION (If Section B has been completed, this Section should be completed giving

information about both the Applicant and Joint Applicant, User, or Other Person. Please mark Applicant-related
information with an “A.” If Section B was not completed, only give information about the Applicant in this Section.)
(Use separate sheet if necessary.)
Subject to Debt?
Value
Description of Assets
Yes/No
Name(s) of Owner(s)

ASSETS O W NED

Cash

Automobiles (Make, Model, Year)

Cash Value of Life Insurance (Issuer,
Face Value)
Real Estate (Location, Date Acquired)

Marketable Securities (Issuer, Type, No. of Shares)

Other (List)
Total Assets
O U T S T A N D IN G D E B T S

Creditor
1. (Landlord or
Mortgage Holder)

$
(Include charge accounts, instalment contracts, credit cards,
rent, mortgages, etc. Use separate sheet if necessary.)
Monthly
Type of Debt
Name in Which
Present
Original
Payments
or Acct. No.
Acct. Carried
Debt
Balance
□ Rent Payment
$ (Omit rent) $ (Omit rent) $
□ Mortgage

Past Due ?
Yes/No

2.
3.

5.
6.
$

Total Debts
Date Paid

(C redit R eferen ces)

Are you a co-maker, endorser, or
If ‘‘yes”
To whom?
guarantor on any loan or contract?
Yes □
for whom?
no n
If “yes”
Are there any unsatisfied
Yes □
to whom owed?
Amount $
judgments against you?
No □
Have you been declared
If “yes”
Yes □
Year
where?
bankrupt in the last 14 years?
No □
Other Obligations—(E.g., liability to pay alimony, child support, separate maintenance. Use separate sheet if necessary.)

Everything that I have stated in this application is correct to the best of my knowledge. I understand that you will retain
this application whether or not it is approved. You are authorized to check my credit and employment history and to answer ques
tions about your credit experience with me.

Applicant’s Signature

Other Signature
(Where Applicable)

Date

[Closed end, secured credit]

CREDIT APPLICATION
IMPORTANT: Read these Directions before completing this Application.

Check
Appropriate
Box

□
□
□

If you are applying for individual credit in your own name and are relying on your own income or assets
and not the income or assets of another person as the basis for repayment of the credit requested, complete
Sections A, C, D, and E, omitting B and the second part of C.
If this is an application for joint credit with another person, complete all Sections, providing information
in B about the joint applicant.
If you are applying for individual credit, but are relying on income from alimony, child support, or sepa
rate maintenance or on the income or assets of another person as the basis for repayment of the credit
requested, complete all Sections to the extent possible, providing information in B about the person on
whose alimony, support, or maintenance payments or income or assets you are relying.

Amount Requested
Payment Date Desired
Proceeds of Credit
$.......................................................................... To be Used For.
SECTION A—INFORMATION REGARDING APPLICANT
Full Name (Last, First, Middle): .......................................................................................................................... Birthdate:
Present Street Address: ........................................................................................................................................... Years there:
City: ............................................................... State: ............................... Zip: ................... Telephone: .................................

/ /

Social Security No.: ....................................................................... Driver’s License No.: .......................................................
Previous Street Address: ......................................................................................................................................... Years there:
City: ............................................................... State: ............................. Zip: ..........................
Present Employer .............................................................................Years there: .................... Telephone: .............................
Position or title: .............................................................................. Name of supervisor: ..........................................................
Employer’s Address: ......................................................................................................................................................................
Previous Employer: .................................................................................................................................................. Years there:
Previous Employer’s Address: ......................................................................................................................................................
Present net salary or commission: $................... per ................... . No. Dependents: ................ Ages:
basis

Alimony, child support, or separate maintenance income need not be revealed If you do not wish to have it considered as
for repaying this obligation.

Alimony, child support, separate maintenance received under: court order □ written agreement □ oral understanding □
Other income: $

per

. Source(s) of other income:

Is any income listed in this Section likely to be reduced before the credit requested is paid off?
□ Yes (Explain in detail on a separate sheet.) No □
Have you ever received credit from us? ...................... When? .................................... Office: ....
Checking Account No....................................................................... Institution and Branch: ...........
Savings Account No.......................................................................... Institution and Branch: ...........
Name of nearest relative

_ . ,

not living with you: .............................................................................................................................. Telephone:
Relationship: ............................. Address: ......................................................................................................................................
SECTION B—INFORMATION REGARDING JOINT APPLICANT OR OTHER PARTY (Use separate sheets if necessary.)

Full Name (Last, First, Middle): .......................................................................................................................... Birthdate:

Relationship to Applicant (if any): ....................................................................................................................................................
Present Street Address: ........................................................................................................................................... Years there: ...
City: ............................................................... State: ................................. Zip ................ Telephone: .......................................
Social Security No.: ........................................................................ Driver’s License No.: ............................................................
Present Employer: ........................................................................... Years there:
Telephone: ...................................
Position or title: .............................................................................. Name of supervisor: ............................................................
Employer’s Address: ...................................................................................................................................................................................
Previous Employer: .................................................................................................................................................. Years there: ...........
Previous Employer’s Address: ....................................................................................................................................................................
Present net salary or commission: $
per .................... No. Dependents:
Ages:
Alimony, child support, or separate maintenance income need not be revealed if you do not wish to have it considered as a basis
for repaying this obligation.

Alimony, child support, separate maintenance received under: court order □ written agreement □ oral understanding □ ______
Other income: $.......................... per

. Source(s) of other income:

Is any income listed in this Section likely to be reduced before the credit requested is paid off?
□ Yes (Explain in detail on a separate sheet.) No □
Checking Account No.: .................................................................. Institution and Branch: ..............................................
Savings Account No.: ...................................................................... Institution and Branch: ..............................................
Name of nearest relative not living with Joint
Applicant or Other Party: ........................................................................................................................................................
Relationship: ................................................................................... Address: ......................................................................
SECTION C—MARITAL STATUS
Applicant: □ Married
□ Separated
□ Unmarried (including single, divorced, and widowed)
Other Party: □ Married
□ Separated
□ Unmarried (including single, divorced, and widowed)

SECTION D—ASSET AND DEBT INFORMATION (If Section B has been completed, this Section should be completed giving
information about both the Applicant and Joint Applicant or Other Person. Please mark Aciplicant-related informa
tion with an “A.” If Section B was not completed, only give information about the Applicant in this Section.)
A S S E T S O W N E D (Use separate sheet if necessary.)
Description of Assets

Value
$

Cash

Subject to Debt?
Yes/No

Name(s) of Owner(s)

Automobiles (Make, Model, Year)

Cash Value of Life Insurance (Issuer,
Face Value)
Real Estate (Location, Date Acquired)

Marketable Securities (Issuer, Type, No. of Shares)

Other (List)
Total Assets
O U T S T A N D IN G D E B T S

Creditor
1. (Landlord or
Mortgage Holder)

$
(Include charge accounts, instalment contracts, credit cards, rent, mortgages, etc. Use separate sheet if
necessary.)
—
■»-----------------------Type of Debt
Name in Which
Monthly
Original
Present
Past Due?
Acct. Carried
or Acct. No.
Payments
Debt
Balance
Yes/No
□ Rent Payment
$ (Omit rent) $ (Omit rent) $
□ Mortgage

Total Debts
Date Paid

(C red it R eferen ces)

2 .---------------------------------------------------------------------------------------------------------------------------------------------------------

Are you a co-maker, endorser, or
guarantor on any loan or contract?
Are there any unsatisfied
judgments against you?
Have you been declared
bankrupt in the last 14 years?

Yes □
Yes □
No □
Yes O
No □

No □

If “yes”
for whom?

To whom?
If <<yes»
to whom owed?

Amount $
If “yes”
Year
where?
Other obligations—(E.g., liability to pay alimony, child support, separate maintenance. Use separate sheet if necessary.)

SECTION E—SECURED CREDIT Briefly describe the property to be given as security:

and list names and addresses of all co-owners of the property:
Name

Address

If the security i9 real estate, give the full name of your spouse (if any):
Everything that I have stated in this application is correct to the best of my knowledge. I understand that you will retain
this application whether or not it is approved. You are authorized to check my credit and employment history and to answer ques
tions about your credit experience with me.

Applicant’s Signature

Other Signature
(Where Applicable)

Date

[Closed end, unsecured/secured credit]

CREDIT APPLICATION
IMPORTANT: Read these Directions before completing this Application.

Check
Appropriate
Box

If you are applying for individual credit in your own name and are relying on your own income or assets
and not the income or assets of another person as the basis for repayment of the credit requested, com
plete only Sections A and D. If the requested credit is to be secured, also complete the first part of
Section C and Section E.
If you are applying for joint credit with another person, complete all Sections except E, providing informa
tion in B about the joint applicant. If the requested credit is to be secured, then complete Section E.
If you are applying for individual credit, but are relying on income from alimony, child support, orsepa
rate maintenance or on the income or assets of another person as the basis for repayment of thecredit
requested, complete all Sections except E to the extent possible, providing information in Babout the
person on whose alimony, support, or maintenance payments or income or assets you are relying. If the
requested credit is to be secured, then complete Section E.

□

□
□
Amount Requested
$............................

Payment Date Desired
......................................

Proceeds of Credit
To be Used For ...

SECTION A—INFORMATION REGARDING APPLICANT
Birthdate: /
Years there: .

Full Name (Last, First, Middle): ............................
Present Street Address: .............................................
City: ............................................................... State:
Social Security No.: ....................................................
Previous Street Address: ...........................................
City: ............................................................... State:
Present Employer: .....................................................

....... Zip: ................... Telephone:
Driver’s License No.: ....................
Years there:
.......... Zip: ..........................
Years there: ................... Telephone:
Name of supervisor: ..........................

Position or title: ........................................................
Employer’s Address: .................................................................................................................................................................................
Previous Employer: ................................................................................................................................................. Years there: ...........
Previous Employer’s Address: ......................................................................................................................................................................
Present net salary or commission: $
per ................... No. Dependents:
Ages:
Alimony, child support, or separate maintenance income need not be revealed if you do not wish to have it considered as a basis
for repaying this obligation.

Alimony, child support, separate maintenance received under: court order □ written agreement □ oral understanding □______
Other income: $.......................... per ........................... Source(s) of other income:

Is any income listed in this Section likely to be reduced before the credit requested is paid off?
□ Yes (Explain in detail on separate sheet.)
□ No
Have you ever received credit from us? ....................... When? .................................... Office
Checking Account No.: .................................................................. Institution and Branch: ..............
Savings Account No.: ...................................................................... Institution and Branch: ..............
Name of nearest relative
_ , ,
not living with you: ............................................................................................................................... telephone:
Relationship: ............................. Address: .............................................................................................................................................
SECTION B_INFORMATION REGARDING JOINT APPLICANT OR OTHER PARTY (Use separate sheets if necessary.)
Full Name (Last, First, Middle): .................................-....................................................................................... Birthdate:

Relationship to Applicant (if any): ..........................................................................................................................................................
Present Street Address: ........................................................................................................................................... Years there: ........
City: ............................................................... State: .................................... Zip: ........................ Telephone: ..............................
Social Security No.: ....................................................................... Driver’s License No.: ...................................................................
Present Employer: ........................................................................... Years there: .................... Telephone: ........................................
Position or title: .............................................................................. Name of supervisor: .....................................................................
Employer’s Address: ...............................................................................................................................................................................
Years there:
Previous Employer: .......................................................................................................................................
Previous Employer’s Address: ..........................................................................................................................
Present net salary or commission: $................... per .................... No. Dependents: ................ Ages: .....
Alimony, child support, or separate maintenance income need not be revealed if you do not wish to have it considered as a basis
for repaying this obligation.

Alimony, child support, separate maintenance received under: court order □ written agreement □ oral understanding □______
Other income: $

per ........................... Source(s) of other income:

Is any income listed in this Section likely to be reduced before the credit requested is paid off?
□ Yes (Explain in detail on separate sheet.)
□ No
Checking Account No.: .................................................................... Institution and Branch: .............................
Savings Account No.: .................................................................... Institution and Branch: .............................
Name of nearest relative not living with
Joint Applicant or Other Party: ........................................................................................................... Telephone:
Relationship: ........................................................................................................... Address: ...............................

SECTION C—MARITAL STATUS
(Do not complete if this is an application for individual unsecured credit.)

Applicant: □ Married
□ Separated
□ Unmarried (including single, divorced, and widowed)
Other Party: □ Married
□ Separated
□ Unmarried (including single, divorced, and widowed)
SECTION D—ASSET AND DEBT INFORMATION (If Section B has been completed, this Section should be completed giving
information about both the Applicant and Joint Applicant or Other Person. Please mark Applicant-related information
with an “A.” If Section B was not completed, only give information about the Applicant in this Section.)
A S S E T S O W N E D (Use separate sheet if necessary.)
Subject to Debt?
Name(s) of Owner(s)
Value
Description of Assets
Yes/No
Cash
$
Automobiles (Make, Model, Year)

Cash Value of Life Insurance (Issuer,
Face Value)
Real Estate (Location, Date Acquired)

Marketable Securities (Issuer, Type, No. of Shares)

Other (List)

Total Assets
O U T S T A N D IN G D E B T S

Creditor
1. (Landlord or
Mortgage Holder)

$
(Include charge accounts, instalment contracts, credit cards, rent, mortgages, etc. Use separate sheet if
necessary.)
____________________________
Past Due?
Monthly
Name in Which
Original
Type of Debt
Present
Payments
Yes/No
Balance
or Acct. No.
Acct. Carried
Debt
$ (Omit rent) $ (Omit rent) $
□ Rent Payment
□ Mortgage

2.
3.
Total Debts

Date Paid

(C red it R eferen ces)

Are you a co-maker, endorser, or
Yes □
guarantor on any loan or contract?
Yes □
Are there any unsatisfied
No □
judgments against you?
Have you been declared
Yes □
No □
bankrupt in the last 11 years?
Other obligations—(E.g., liability to pay alimony,

No □

If “Yes,”
for whom?

To whom?
If “Yes,”
to whom owed?

Amount $
If “Yes,”
Year
where?
child support, separate maintenance. Use separate sheet if necessary.)

SECTION E—SECURED CREDIT (Complete only if credit is to be secured.) Briefly describe the property to be given as security:

and list names and addresses of all co-owners of the property:
Name

Address

If the security is real estate, give the full name of your spouse (if any):
Everything that I have stated in this application is correct to the best of my knowledge. I understand that you will retain
this application whether or not it is approved. You are authorised to check my credit and employment history and to answer ques
tions about your credit experience with me.

Applicant’s Signature

Other Signature
(Where Applicable)

Date

[Community property]

CREDIT APPLICATION
IMPORTANT: Read these Directions before completing this Application.

Check
Appropriate
Box

If you are applying for individual credit in your own name, are not married, and are not relying on alimony,
child support, or separate maintenance payments or on the income or assets of another person as the basis
for repayment of the credit requested, complete only Sections A and D. If the requested credit is to be
secured, also complete Section E.
In all other situations, complete all Sections except E, providing information in B about your spouse, a
joint applicant or user, or the person on whose alimony, support, or maintenance payments or income or
assets you are relying. If the requested credit is to be secured, also complete Section E.

□

□
Amount Requested
$............................

Payment Date Desired
......................................

Proceeds of Credit
To be Used For ...

SECTION A—INFORMATION REGARDING APPLICANT
Full Name (Last, First, Middle) : ..........................
Present Street Address .............................................
City: ............................................................ State:
Social Security No.: ................................................
Previous Street Address: .......................................
City: ............................................................ State:

........................................................................ Birthdate:
........................................................................ Years there:
.......... Zip: ................... Telephone: ................................
Driver’s License No.: ......................................................
........................................................................ Years there:
.......... Zip: ..........................
Years there: ................... Telephone: ............................
Name of supervisor: .........................................................

/ /

Present Employer: ..................................................
Position or title: ...................................................
Employer’s Address: ...................................................................................................................................................................................
Previous Employer: ................................................................................................................................................ Years there: ...........
Previous Employer’s Address: ....................................................................................................................................................................
Present net salary or commission: $
per
. No. Dependents:
Ages: .................................................
Alimony, child support, or separate maintenance income need not be revealed If you do not wish to have it considered as a basis
for repaying this obligation.

Alimony, child support, separate maintenance received under: court order □ written agreement □ oral understanding □_______
Other income: $

per

Source(s) of other income:

Is any income listed in this Section likely to be reduced in the next two years or before the credit requested is paid off?
□ Yes (Explain in detail on a separate sheet.) No □
Have you ever received credit from us? ..................... When? ........................................ Office:
Checking Account No.: .................................................................. Institution and Branch: ..................................................................
Savings Account No.: ...................................................................... Institution and Branch: ..................................................................
Name of nearest relative not living with you ...................................................................................... Telephone: .................................
Relationship: ....................................................................................................... Address: ....................................................................
S E C T I O N B —INFORMATION REGARDING SPOUSE, JOINT APPLICANT, USER, OR OTHER PARTY (Use separate sheets if
necessary.)
Full Name (Last, First, Middle): .......................................................................................................................... Birthdate: / /
Relationship to Applicant (if any): .......................................................................................................................... Years there: ...........
Present Street Address: ...............................................................................................................................................................................
City: ............................................................... State: .................................... Zip: ....................... Telephone: ....................................
Social Security No.: ......................................................................... Driver’s License No.: ......................................................................
Present Employer: ...........................................................................Years there:

Telephone: ...........................................

Position or title: .............................................................................. Name of supervisor: ........................................................................
Employer’s Address: ............................................................................................................... •'..................................................................
Previous Employer: ................................................................................................................................................. Years there: ...........
Previous Employer’s Address: ...................................................................................................................................................................
Present net salary or commission: $
per .................... No. Dependents:
Ages: .............................................. .
Alimony, child support, or separate maintenance income need not be revealed if you do not wish to have it considered as a basis
for repaying this obligation.

Alimony, child support, separate maintenance received under: court order □ written agreement □ oral understanding □______
Other income: $

per ........................... Source(s) of other income:

Is any income listed in this Section likely to be reduced in the next two years or before the credit requested is paid off?
□ Yes (Explain in detail on a separate sheet.) □ No
Checking Account No.: .................................................................. Institution and Branch: .......................................................
Savings Account No.: ...................................................................... Institution and Branch: ........................................................
Name of nearest relative not living with
Spouse, Joint Applicant, User, or other Party: .................................................................................. Telephone: .........................
Relationship: ................................................................................... Address: ..............................................................................

SECTION C—MARITAL STATUS
Applicant: □ Married
□ Separated
□ Unmarried (including single, divorced, and widowed)
Other Party: □ Married
□ Separated
□ Unmarried (including single, divorced, widowed)
SECTION D—ASSET AND DEBT INFORMATION (If Section B has been completed, this Section should be completed giving
information about both the Applicant and Spouse, Joint Applicant, User, or Other Person. Please mark Applicantrelated information with an “A.” If Section B was not completed, only give information about the Applicant in this
Section.)
A S S E T S O W N E D (Use separate sheet if necessary.)
Subject to Debt?
Name(s) of Owner(s)
Value
Description of Assets
Yes/No
Cash
$
Automobiles (Make, Model, Year)
Cash Value of Life Insurance (Issuer,
Face Value)
Real Estate (Location, Date Acquired)
Marketable Securities (Issuer, Type, No. of Shares)
Other (List)

Total Assets
O U T S T A N D IN G D E B T S

$
(Include charge accounts, instalment contracts, credit cards, rent, mortgages, etc. Use separate sheet if
necessary.)

Name of Creditor
1. (Landlord or
Mortgage Holder)

Type of Debt
or Acct. No.
□ Rent Payment
□ Mortgage

Name in Which
Acct. Carried

Past Due?
Yes/No

Monthly
Present
Original
Payments
Balance
Debt
$ (Omit rent) $ (Omit rent) $

2.
3.
Total Debts

--------------- J -------------- $

(C red it R eferen ces) _____________________________________________________________________

__ _________ Date Paid

If “yes,”
Are you a co-maker, endorser, or
Yes □
for whom?
To whom?
no n
guarantor on any loan or contract?
Yes □
If “yes,”
Are there any unsatisfied
to whom owed?
Amount $
judgments against you?
No n
If “yes,"
Yes □
Have you been declared
Year
where?
No □
bankrupt in the last 14 years
Other obligations—(E.g., Liability to pay alimony, child support, separate maintenance. Use separate sheet if necessary.)

SECTION E—-SECURED CREDIT (Complete only if credit is to be secured.) Briefly describe the property to be given as security:

and list names and addresses of all co-owners of the property:
Name

Address

Applicant’s Signature

Other Signature
(Where Applicable)

Date

[Residential real estate mortgage loan]

R E S ID E N TIA L L O A N A P P L IC A TIO N
Amount

MORTGAGE
APPLIED
□ VA
FOR
Prepayment Option

$ .............. ..

□ ....-

Interest
Rate
______ %

Monthly Payment
Principal & Interest
$

No. of
Months

□ Taxes Q Hazard Ins. □ Mtg. Ins. □

County

City

Property Street Address

Escrow/Im pounds (to be collected monthly)

State

Zip

Year Built

Legal Description (Attach description if necessary.)

Purpose of Loan:

□ Purchase
□ Construction-Permanent
□ Construction
□ Refinance
Lot Value D ata
Original Cost
Present Value (a)

Complete this line if
Construction-Permanent
or Construction Loan j£2T

Year Acquired
Complete this line if a Refinance Loan

Year Acquired 1 Original Cost

1Purpose of Refinance
J

»
1

ENTER TOTAL AS
PURCHASE PRICE
IN DETAILS OF
PURCHASE.

Total (a + b)

| $
J $
Describe Improvements [ ) m ade

| Amt. Existing Liens
|
! $
l $
I
Title Will Be Held In W hat Name(s)

□ Other (Explain)
1 Cost of Improv. (b)
t

[ ] to be made

1
1
M anner in Which Title Will Be Held

Cost:

$-------------------------

Source of Down Payment and Settlement Charges

This application is designed to be completed by the borrower(s) with the lender’s assis tance. The Co-Borrower Section and all other Co-Borrower questions must be completed
and the appropriate box(es) checked if □ another person will be jointly obligated wi th the Borrower on the loan, □ the Borrower is relying on income from alimony,
child support, or separate maintenance o r on the income or assets of another person a s a basis for repayment of the loan, or □ the Borrower is m arried and resides, o r the
property is located, in a community property state.

3. CO-BO RR O W ER

2. BORROW ER
A.ie

School

Age

Name

Present Addiess

Present Address

C ity/State/Zip

School
Yrs.

Yrs.

C ity/State/Zip

......... .........— --------—---- -------------------------

---------------------------------— ............. — — ■

Form er address if less than 2 years at present address

Form er address if less than 2 years at present address
Street _________________
C ity/S tate/Z ip --------------

Years at former address

Years at former address
M arital

□ Married

Status

□ Unm arried
(inch single, divorced, widowed)

Status
Years employed in this line
of work or profession?

Name and Address of Employer

□ Separated

Marital

□ Separated

Years employed in this line
of work or profession?

Name and Address of Employer

______ years

---------- years

Years on this j o b ----------

Years on this job - _____

□ Seif Employed

□ Self Employed
Type of Business

Position/Title

Business Phone

Home Phone

Social Security Number

Base Empl. Income

Co-Borrower

Borrower
$

Total

Present*

Rent

6 . D E TA IL S OF PURCHASE

Proposed

First Mortgage (P&I)

Business Phone

Home Phone

Social Security Number

5. M O N T H L Y HOUSING EXPENSE

4. GROSS M O N T H L Y IN C O M E
Item

Type of Business

Position/Title

a. Purchase Price

Overtime

Other Financing (P&I)

b. Total Closing Costs (Est.)

Bonuses
Commissions

Hazard Insurance
Real Estate Taxes

d. Total ( a + b + c )

Dividends/Interest

Mortgage Insurance

e. Amount of Mortgage

(

Net Rental Income

Homeowner Assn. Dues

f. Other Financing

O thert (Before

O ther:

g. Present Equity in Lot

>
)

Total Monthly Pmt.

under Describe Other

c. Pre Paid Escrows (Est.)

Utilities
Total

Total

NOTICE:
C-Co-Borrower

h. Amount of Cash Deposit

i. Closing Costs Paid by Seller

j. Cash Reqd. F or Closing (Est.)

)

DESCRIBE O T H E R IN CO M E

t Alimony, child support, or separate m aintenance income need not be revealed if the Borrower
or Co-Borrower does not choose to have it considered as a basis for repaying this loan.

Monthly Amount

8. IF E M P L O Y E D IN C U R R E N T POSITION FOR LESS T H A N TW O YEA R S C O M P L E TE T H E FO LLO W IN G
Dates From /T o

Type of Business

Previous Employer/School

Monthly Income

9. TH E S E Q UESTIO NS AP P LY T O B O TH BORROWERS
If a “yes” answer is given to a question in
this column, explain on an attached sheet.
Have you any outstanding judgments?
In the last 14 years, have you been bankrupt?
Have you had property foreclosed upon or
given title or a deed in lieu thereof?

Borrower Y es/N o

Borrower Y es/N o Co-Borrower Yes/No
— --------------------------------------*—
Do you have health and accident insurance?

--------------------------

---------------—

____ ____________

________ —_

Do you have m ajor medical coverage?

Are you a co-maker or endorser on a note?

— ___________

______ _ _ _

D o you intend to occupy the property?

Are you a party in a law suit?
Are you obligated to pay alimony, child
support, or separate maintenance?

-----------------

Will this property be your primary residence?

____________

Is any part of the down payment borrowed?

-------------------

........................... .....

Have you previously owned a home?

______

Sale price of previously owned home

...................„...

1All Present Monthly Housing Expenses of the Borrower and Co-Borrower should b e listed on a combined basis.

Co-Borrower Yes/N o

This statem ent and any applicable supporting schedules may be completed jointly by both married and unmarried co-borrowers if their assets
and liabilities are sufficiently joined so that the statement can be meaningfully and fairly presented on a combined basis; otherwise sepa
rate statements and schedules are required. If the Co-Borrower section was completed about a spouse, this statement and supporting
schedules must be completed about that spouse also.
□ Completed Jointly
□ N ot Completed Jointly

10. ASSETS

11. L IA B IL IT IE S

Indicate by (*) those liabilities that will be satisfied upon sale of re a l estate owned or upon refinancing of property.
Description

Cash ^

Cash Deposit Toward Purchase
Held By

Maritet

C reditor’s
Name, Address, Account Number

Acct. Name if Not
B orrow ers)

Instalment Debts (include “revolv
ing” charge accounts)

Mo. Pmt. and
Mos. left to pay
$

Pm t./M os.

Unpaid
Balance
t

/
Checking and Savings Accounts
(Nam es of Institutions/
Acct. Nos.)

Automobile Loans

Stocks and Bonds (N o./description)

Life Insurance Net Cash Value
F a c e A m o u n t ($

Real Estate Loans

)

SUBTOTAL LIQ U ID ASSETS

Real Estate Owned

( E n te r M a r k e t
V a lu e f r o m S c h e d u le o f R e a l
E s ta te O w n e d )

Other Debt, Including Stock Pledges

Vested Interest in Retirement Fund
Net Worth of Business Owned
( A tta c h

F in a n c ia l S t a t.)

Automobiles (M ake and Year)

/
Alimony, Child Support, and Maintenance
Payments (Owed To)

Furniture and Personal Property
Other Assets (Itemize)

TOTAL MONTHLY PAYMENTS
TOTAL ASSETS

A
$

N ET WORTH (A minus B)

TOTAL

LIABILITIES

S C H E D U LE O F R E A L E S T A T E O W N ED (If Additional Properties Owned Attach Separate Schedule)
Address of Property
(Indicate S if Sold, PS if Pending Sale
or R if Rental being held for income)

Type of
Property

Amount of
Present
Mortgages
Market Value
& Liens

B-Borrower

Net
K :::'
Income

Taxes, Ins.
M aintenance
and Misc.

Mortgage
Payments
$

TOTALS
s
s
$
$
12. LIS T PREVIOUS C R E D IT REFER ENCES

Gross
Rental
Income

C-Co-Borrower |~C'reditor’s Name and Address

Account Number

Purpose

Highest Balance

Date Paid

List any additional names under which credit has previously been received
AGREEM ENT: The Undersigned applies for the loan indicated in this application, to be secured
the property described herein, and represents that the property will not be used for any illegal or
made in this application are true and are m ade for the purpose of obtaining the loan. Verification
in this application. The original or a copy of this application will be retained by the lender, even

Borrower’s Signature—

.Date

/ /

Co-Borrower’s Signature.

by a first mortgage or deed of trust on
restricted purpose and that all statements
may be obtained from any source named
if the loan is not granted.

.Date

/ /

V O L U N T A R Y IN F O R M A TIO N FOR G O V E R N M E N T M O N ITO R IN G PURPOSES
If this loan is for purchase or construction of a home, the following information is requested by the Federal Government to m onitor this
lender’s compliance with Equal Credit Opportunity and Fair Housing Laws. The law provides that a lender may neither discriminate on the
basis of this information nor on whether or not it is furnished. Furnishing this information is optional. If you do not wish to furnish the
following information, please initial below.
BORROWER: I do not wish to furnish this information (initials)
Race/National Origin
SEX □ Female □ Male
□ American Indian, Alaskan Native
□ Asian, Pacific Islander Q Black
□ Hispanic
□ White
□ Other (specify)

CO-BORROWER: I do not wish to furnish this information (initials)
Race/National Origin
□ American Indian, Alaskan Native
SEX □ Female □ Male
□ Asian, Pacific Islander Q Black
□ Hispanic
Q White
□ Other (specify)

FO R L E N D E R ’S USE O N L Y

Reverse

SUPPLEMENT I
SUPPLEMENT I

Procedures and criteria under which a State
may apply for an exemption pursuant to section
705(g) of the Act and section 202.11(e) of this
Part.
(a) Application. Any State may apply to the
Board pursuant to the provisions of this Supple
ment and the Board’s Rules of Procedure (12 CFR
262) for a determination that, under the laws of
that State,1 a class of credit transactions- within
the State is subject to requirements that are sub
stantially similar to, or provide greater protection
for applicants than, those imposed under sections
701 and 702 of the Act, * and that there is ade
quate provision for State enforcement of such re
quirements. The application shall be in writing,
addressed to the Board, signed by the Governor,
Attorney General, or State official having primary
enforcement or interpretive responsibilities under
the State law that is applicable to the class of credit
transactions, and shall be supported by the docu
ments specified in subsection (b).
(b) Supporting documents. The application shall
be accompanied by:
(1) A copy of the full text of the State law
that is claimed to contain requirements substan
tially similar to those imposed under sections 701
and 702 of the Act, or to provide greater protec
tion to applicants than sections 701 and 702 of
the Act, regarding the class of credit transactions
within that State.
(2) A comparison of each provision of sections
701 and 702 of the Act with the corresponding
provision of the State law, together with reasons
supporting the claim that the corresponding pro
visions of the State law are substantially similar12
1 Any reference to State law in this Supplement in
cludes a reference to any regulations that implement
State law and formal interpretations thereof by a court
of competent jurisdiction or duly authorized agency of
that State.
2 As applicable, references to “class of credit transac
tions" in this Supplement include one or more such
classes of credit transactions.
a Any reference in this Supplement to sections 701 and
702 of the Act includes a reference to the corresponding
and implementing provisions of this Part, the Board’s
formal interpretations thereof, and official interpretations
or approvals issued by an authorized official or employee
of the Federal Reserve System. Additionally, any refer
ence to sections 701 and 702 of the Act includes a
reference to sections 705(a), (b ), (c ), and (d ) of the Act
and the corresponding provisions of this Part, which,
though technically not a part of sections 701 and 702,
implement and relate to substantive requirements of sec
tions 701 and 702.

to, or provide greater protection to applicants
than, provisions of sections 701 and 702 of the
Act regarding the class of credit transactions and
explaining why any differences are not inconsis
tent with the provisions of sections 701 and 702
of the Act and do not result in a diminution in
the protection otherwise afforded applicants; and
a statement that no other State laws (including
administrative or judicial interpretations) are re
lated to, or would have an effect upon, the State
law that is being considered by the Board in mak
ing its determination.
(3) A copy of the full text of the State law
that provides for enforcement of the State law
referred to in subsection (b)(1).
(4) A comparison of the provisions of the
State law that provides for enforcement with the
provisions of sections 704 and 706 of the Act,
together with reasons supporting the claim that
such State law provides for:
(i) administrative enforcement of the State
law referred to in subsection (b)(1) that is sub
stantially similar to, or more extensive than, the
enforcement provided under section 704 of the
Act;
(ii) civil liability for a failure to comply
with the requirements of the State law that is
substantially similar to, or more extensive than,
that provided under section 706 of the Act, in
cluding class action liability and the ability of the
State Attorney General or other appropriate State
official to commence a civil action under circum
stances substantially similar to those prescribed in
section 706 of the Act, except that such State law
may provide a greater damage remedy or other,
more extensive remedies;
(iii) a statute of limitations that prescribes
a period for civil actions of substantially similar
duration to that provided under section 706(f) of
the Act, or a longer period; and
(iv) a scope of discovery relating to a credi
tor’s credit granting standards under appropriate
discovery procedures in a court action or agency
proceeding that is substantially similar to, or more
extensive than, that provided under section 706(j)
of the Act.
(5) A statement identifying the office desig
nated or to be designated to administer the State
law referred to in subsection (b)(1), together with
complete information regarding the fiscal arrange
ments for administrative enforcement (including

SUPPLEMENT I

the amount of funds available or to be provided),
the number and qualifications of personnel en
gaged or to be engaged in enforcement, and a
description of the procedures under which such
State law is to be administratively enforced, in
cluding, if relevant, administrative enforcement
regarding Federally-chartered creditors.4 The
statement should also include reasons to sup
port the claim that there is adequate provision
for enforcement of such State law.
(c) Criteria for determination. The Board will
consider the criteria set forth below, and any
other relevant information, in determining
whether the law of a State is substantially similar
to, or provides greater protection to applicants
than, the provisions of sections 701 and 702 of
the Act regarding the class of transactions within
that State, and whether there is adequate pro
vision for State enforcement of such law. In
making that determination, the Board primarily
will consider each provision of the State law in
comparison with each corresponding provision
in sections 701 and 702 of the Act, and not the
State law as a whole in comparison with the Act
as a whole.
(1)
In order for provisions of State law to be
substantially similar to, or provide greater pro
tection to applicants than, the provisions of sec
tions 701 and 702 of the Act, the provisions of
State law 5 at least shall provide that:
(i) Definitions and rules of construction, as
applicable, import the same meaning and have
the same application as those prescribed by sec
tions 701 and 702 of the Act.
(ii) Creditors provide all of the applicable
notifications required by the provisions of sections
701 and 702 of the Act, with the content and in
the terminology, form, and time periods pre
scribed by this Part pursuant to sections 701 and
* T r a n s a c t i o n s w ith i n a S t a t e in w h i c h a F e d e r a l l y c h a r t e r e d i n s t i t u t i o n is a c r e d i t o r s h a l l n o t b e c o n s i d
e re d s u b je c t to e x e m p tio n , a n d su c h F e d e r a lly - c h a r te r e d
c r e d i to r s sh a ll r e m a in s u b je c t to th e r e q u i r e m e n t s o f th e
A c t a n d a d m in istra tiv e e n fo rc e m e n t by th e a p p ro p ria te
F e d e r a l a u th o r ity u n d e r se c tio n 7 0 4 o f th e A c t, u n less
a S ta te esta b lish es to th e sa tisfa c tio n o f th e B o a r d th a t
ap p ro p riate
arran g em en ts
have
been
m ade
w ith su ch
F e d e r a l a u th o r itie s to a s s u re effec tiv e e n f o r c e m e n t o f th e
req u irem en ts
5 T his
th a t th e

S tate

law s

regarding

such

cred ito rs.

s u b s e c t i o n is n o t t o b e c o n s t r u e d a s i n d i c a t i n g
B o a rd w o u ld c o n sid e r ad v ersely an y a d d itio n a l

requirem ents
the p u rp o s e

o f S ta te la w
o f th e A c t

th a t a re n o t in c o n siste n t w ith
o r th e re q u ire m e n ts im p o se d

u n d e r s ectio n s 701 a n d 702 o f the A c t.

702; however, required references to State law
may be substituted for the references to Federal
law required in this Part. Notification requirements
under State law in additional circumstances or
with additional detail that do not frustrate any
of the purposes of the Act may be determined by
the Board to be consistent with sections 701 and
702 of the Act.
(iii) Creditors take all affirmative actions
and abide by obligations substantially similar to or
more extensive than those prescribed by sec
tions 701 and 702 of the Act under substantially
similar or more stringent conditions and within
the same or more stringent time periods as are
prescribed in sections 701 and 702 of the Act.
(iv) Creditors abide by the same or more
stringent prohibitions as are prescribed by sections
701 and 702 of the Act.
(v) Obligations or responsibilities imposed
on applicants are no more costly, lengthy, or
burdensome relative to applicants’ exercising any
of the rights or gaining the benefits of the pro
tections provided in the State law than correspond
ing obligations or responsibilities imposed on ap
plicants in sections 701 and 702 of the Act.
(vi) Applicants’ rights and protections are
substantially similar to, or more favorable than,
those provided by sections 701 and 702 of the
Act under conditions or within time periods that
are substantially similar to, or more favorable to
applicants than, those prescribed by sections 701
and 702 of the Act.
(2)
In determining whether provisions for en
forcement of the State law referred to in subsec
tion (b)(1) are adequate, consideration will be
given to the extent to which, under State law,
provision is made for:
(i) administrative enforcement, including nec
essary facilities, personnel, and funding;
(ii) civil liability for a failure to comply with
the requirements of such a State law that is sub
stantially similar to, or more extensive than, that
provided under section 706 of the Act;
(iii) a statute of limitations for civil liability
of substantially similar or longer duration as that
provided under section 706 of the Act; and
(iv) a scope of discovery relating to a credi
tor's credit granting standards that is substantially
similar to, or more extensive than, that provided
under section 706(j) of the Act.

SUPPLEMENT I

(3) The Board shall inform the appropriate
official of any State that receives such an exemp
tion of any subsequent amendments of the Act
(including the implementing provisions of this
Part, the Board’s formal interpretations, and inter
pretations or approvals issued by an authorized
official or employee of the Federal Reserve Sys
tem) that might necessitate the amendment of
State law for the exemption to continue.
(4) No exemption shall extend to the adminis
trative enforcement or civil liability provisions of
sections 704 and 706 of the Act. After an ex
emption is granted, the requirements of the appli
cable State law shall constitute the requirements
of sections 701 and 702 of the Act, except to
the extent such State law imposes requirements
not imposed by the Act or this Part.

(d) Public notice of filing and proposed rule
making. In connection with any application that

has been filed in acordance with the requirements
of subsections (a) and (b) of this Supplement and
following initial review of the application, a notice
of such filing and proposed rule making shall be
published by the Board in the Federal Register,
and a copy of such application shall be made
available for examination by interested persons
during business hours at the Board and at the
Federal Reserve Bank for each Federal Reserve
District in which the State making the application
is situated. A period of time shall be allowed
from the date of such publication for interested
parties to submit written comments to the Board
regarding that application.
(e) Exemption from requirements. If the Board
determines on the basis of the information before
it that, under the law of a State, a class of credit
transactions is subject to requirements substan
tially similar to, or that provide greater protection
to applicants than, those imposed under sections
701 and 702 of the Act and that there is adequate
provision for State enforcement, the Board will
exempt the class of credit transactions in that
State from the requirements of sections 701 and
702 of the Act in the following manner and sub
ject to the following conditions:
(1) Notice of the exemption shall be published
in the Federal Register, and the Board shall fur
nish a copy of such notice to the State official
who made application for such exemption, to each
Federal authority responsible for administrative
enforcement of the requirements of sections 701
and 702 of the Act, and to the Attorney General
of the United States. Additionally, the Board shall
include any exemption granted in an appropriate
listing in Supplement II to this Part. Any exemp
tion granted shall be effective 90 days after the
date of publication of such notice in the Federal

(f) Adverse determination. (1) If, after publica
tion of a notice in the Federal Register as pro
vided under section (d), the Board finds on the
basis of the information before it that it cannot
make a favorable determination in connection
with the application, the Board shall notify the
appropriate State official of the facts upon which
such findings are based and shall afford that State
authority a reasonable opportunity to demonstrate
or achieve compliance.
(2) If, after having afforded the State author
ity such opportunity to demonstrate or achieve
compliance, the Board finds on the basis of the
information before it that it still cannot make a
favorable determination in connection with the
application, the Board shall publish in the Federal
Register a notice of its determination regarding
the application and shall furnish a copy of such
notice to the State official who made application
for such exemption.
(g) Revocation of exemption. (1) The Board
reserves the right to revoke any exemption granted
under the provisions of this Supplement if at any
time it determines that the State law does not,
in fact, impose requirements that are substantially
similar to, or that provide greater protection to
applicants than, those imposed under sections 701
and 702 of the Act or that there is not, in fact,
adequate provision for State enforcement.

(2) The appropriate official of any State that
receives an exemption shall inform the Board
in writing within 30 days of any change in the
State laws referred to in subsections (b)(1) and
(b)(3). The report of any such change shall contain
copies of the full text of that change, together
with statements setting forth the information and
opinions regarding that change that are specified
in subsections (b)(2) and (b)(4). The appropriate
official of any State that has received such an
exemption also shall file with the Board from time
to time such reports as the Board may require.

(2) Before revoking any such exemption, the
Board shall notify the appropriate State official
of the facts or conduct that, in the Board's opin
ion, warrants such revocation, and shall afford
that State such opportunity as the Board deems
39

SUPPLEMENT I

appropriate in the circumstances to demonstrate
or achieve compliance.
(3)
If, after having been afforded the oppor
tunity to demonstrate or achieve compliance, the
Board determines that the State has not done so,
notice of the Board's intention to revoke such
exemption shall be published as a notice of pro
posed rule making in the Federal Register. A
period of time shall be allowed from the date of
such publication for interested persons to submit
written comments to the Board regarding the pro
posed rule making.

(4)
If such exemption is revoked, notice of
such revocation shall be published by the Board
in the Federal Register, and a copy of such notice
shall be furnished to the appropriate State official,
to the Federal authorities responsible for enforce
ment of the requirements of the Act, and to the
Attorney General of the United States. The revo
cation shall become effective, and the class of
transactions affected within that State shall be
come subject to the requirements of sections 701
and 702 of the Act. 90 days after the date of
publication of the notice in the Federal Register.

Full text of Federal Reserve Bank of New York Circulars : 8044. Regulation B - Equal Credit Opportunity

FRASER