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 7109.1 - Supplementary Income

Universal Citation: 21 CA Code of Regs 7109.1
Current through Register 2024 Notice Reg. No. 38, September 20, 2024

Lending standards which take into consideration only the non-overtime income of the primary wage earner may result in discrimination in that they do not take into account variations in employment patterns among individuals and families. The determination as to whether primary income or additional income qualifies as effective income for credit purposes should depend upon whether such income may reasonably be expected to continue through the early period of the mortgage term. Automatically discounting other income from bonuses, overtime or part-time employment will deny financing to persons who otherwise may be creditworthy. Since statistics show that minority group members and low- and moderate-income families rely more often on such supplemental income, the practice may be racially discriminatory in effect as well as artificially restrictive of opportunities for home financing.

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

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