Loan Officer Practice Exam 2025 – Comprehensive All-in-One Guide for Exam Success!

The correct choice is ECOA, which stands for the Equal Credit Opportunity Act. This legislation is designed to ensure that all individuals have equal access to credit and that lending practices are fair and non-discriminatory. Under ECOA, borrowers are empowered to challenge appraisal reports if they believe that the valuation does not accurately reflect the value of the property in question. This protection is essential for maintaining fairness in the lending process and upholding the rights of borrowers.

While TILA (Truth in Lending Act) focuses on providing borrowers with clear and comprehensive information about borrowing terms, FCRA (Fair Credit Reporting Act) safeguards consumer information in credit reporting, and RESPA (Real Estate Settlement Procedures Act) deals with the integrity of the settlement process in real estate transactions, it is ECOA that specifically addresses the right of borrowers to contest the values placed on appraisals. This ensures that lenders cannot unfairly disadvantage certain borrowers based on erroneous property valuations.