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 7109.6 - On-Site Characteristics

Universal Citation: 21 CA Code of Regs 7109.6
Current through Register 2024 Notice Reg. No. 38, September 20, 2024

The use of a rigid list of select on-site characteristics as an automatic basis for rejecting a loan can have a discriminatory effect against some neighborhoods and borrowers. For example, use of a rigid underwriting rule which establishes a minimum square footage requirement may be discriminatory. To the extent such lending policies do have a discriminatory effect, and there is no legitimate business purpose served, such policies shall constitute a violation of the Act. The financial institutions shall evaluate the on-site characteristics or physical conditions of each security property on a case-by-case basis.

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

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