What does the Fair Lending law require?
California’s Fair Lending Regulations require financial institutions providing financial assistance for the purchase or improvement of family dwelling units to post the California Fair Lending Notice in a conspicuous place to inform applicants of the non-discrimination provisions of the Housing Financial Discrimination Act of 1977.
What transactions are covered?
The regulations apply to financial institutions or any other institution in the State that regularly makes, arranges, or purchases loans or advances credit secured by real property:
(1) for the purchase, construction, rehabilitation, improvement, or refinancing of a one-to-four unit family residence that is or will be occupied by the owner, or
(2) for home improvement of any one-to-four unit family residence, whether or not the owner will occupy the property.
What types of institutions are covered?
- Banks (State-chartered Banks or National Banking Associations)
- State-chartered Savings and Loan Associations
- State- or federally-chartered Credit Unions
- Industrial Loan Companies
- Residential Mortgage lenders
- Finance Lenders
- Home Improvement Contractors
What does the poster communicate?
The poster informs applicants and recipients of financial assistance that:
- It is illegal to discriminate in the provision of financial assistance based on:
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- Trends, characteristics or conditions in the neighborhood or geographic area surrounding a housing accommodation,; or
- Race, color, religion, sex, marital status, national origin, or ancestry.
- It is illegal to consider the racial, ethnic, religious, or national origin composition of a neighborhood or geographic area surrounding a housing accommodation, in appraising a housing accommodation or in determining whether to provide financial assistance.
- If they have questions or wish to file a complaint they should contact the California Department of Financial Protection and Innovation at the address or telephone number provided.