Who qualifies as a creditor under ECOA?

The correct choice identifies a creditor as any person who regularly extends, renews, or continues credit. This definition aligns with the Equal Credit Opportunity Act (ECOA), which establishes that a "creditor" encompasses a broad array of entities involved in credit transactions.

Under ECOA, creditors include not just traditional financial institutions like banks and credit unions but also any individual or business that regularly engages in the practice of providing credit. This can include mortgage lenders, car dealerships that offer financing, and even retail businesses that extend credit through store accounts. The key factor is the regularity of credit extension rather than the specific type of institution offering it.

Understanding this definition is crucial for mortgage loan officers and anyone working in lending because it shapes the regulatory landscape they operate within, ensuring that all consumers have equal access to credit regardless of their background.