California Code of Regulations
Title 21 - Public Works
Division 3 - California State Transportation Agency
Chapter 4 - Regulations Pursuant to the Housing Financial Discrimination Act of 1977
Article 2 - Nondiscrimination Requirements
Section 7105 - Nondiscrimination in Lending

Universal Citation: 21 CA Code of Regs 7105

Current through Register 2024 Notice Reg. No. 38, September 20, 2024

(a) No financial institution may deny financial assistance or discriminate in fixing the amount, interest rate, duration, application procedures, or other terms or conditions of such financial assistance based upon:

(1) The consideration of
(A) The age of residential structures in the neighborhood or geographic area surrounding the subject property unless the financial institution can demonstrate that such consideration in a particular case is required to avoid an unsafe and unsound business practice;

(B) The location of the housing accommodation in a neighborhood or geographic area including such areas which the financial institution has previously assumed are declining unless the financial institution can demonstrate that such consideration in a particular case is required to avoid an unsafe and unsound business practice;

(C) The location of the housing accommodation on or near land zoned industrial or commercial or located on or near land zoned for other non-conforming uses unless the financial institution can demonstrate that such consideration in a particular case is required to avoid an unsafe and unsound business practice; and

(D) Other conditions, characteristics or trends in the neighborhood or geographic area surrounding the housing accommodation unless the financial institution can demonstrate that such consideration in a particular case is required to avoid an unsafe and unsound business practice.

(2) Consideration of race, color, religion, sex, marital status, national origin or ancestry of the person or persons who own, propose to buy, or will inhabit the housing accommodation.

(3) The consideration of the racial, ethnic, religious, or national origin composition of a neighborhood or geographic area surrounding a housing accommodation or whether or not such composition is undergoing change, or is expected to undergo change.

(b) No financial institution shall use or engage in a lending or underwriting policy or in a marketing system which has a discriminatory effect on the basis of race, religion, sex, marital status, national origin, or ancestral group unless the financial institution can demonstrate that such system, policy or practice is required to achieve a legitimate business purpose.

(c) Nothing in these regulations shall require a financial institution which is subject to laws regarding usury to make a conventional mortgage loan or consider an application for a conventional mortgage loan during periods when market interest rates for conventional mortgage loans are in excess of the maximum rate of interest permitted by Article XV of the California Constitution.

Note: Authority cited: Section 35814, Health and Safety Code. Reference: Sections 35810- 35815, Health and Safety Code.

Disclaimer: These regulations may not be the most recent version. California may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.