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 7109.3 - Payment-to-Income and Debt-to-Income Ratios

Financial institutions should review their underwriting rules with respect to payment to income ratios or installment debt to income ratios to reflect the increasing percentage of income that must be devoted to housing expense. Overly restrictive or inflexible payment to income ratios may discriminate against low- and moderate-income persons who often must devote a greater percentage of their income to basic necessities such as housing. Any payment to income ratio should be applied with flexibility to allow for a case-by-case determination.

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