What must an applicant be told before inquiries about alimony or child support are made?

The correct response highlights that inquiries about alimony or child support can be ignored if the creditor does not rely on this information for repayment. This is grounded in the principles of fair lending outlined in Regulation B, which is part of the Equal Credit Opportunity Act (ECOA). Regulation B mandates that creditors cannot discriminate against applicants based on marital status and that they must treat all applicants fairly.

If the credit decision does not depend on the applicant's alimony or child support, there is no need to disclose such inquiries. The focus is on the capacity to repay the loan rather than on the applicant's specific sources of income related to family law. Thus, it is permissible to forego these details if they do not play a critical role in creditworthiness assessments. This principle aims to prevent discrimination and to uphold the standards of equitable lending practices.

In contrast, the other options either suggest that there are stricter disclosure requirements than what is necessary or imply an unnecessary legal basis for such inquiries, which does not align with the regulations aimed at preventing discrimination in lending.