Nondiscrimination

The law makes compliance with mortgage-lending nondiscrimination rules a routine part of state supervision and allows state enforcement when violations are found.

What the law does ​

• Requires the Commissioner of Financial Protection and Innovation to examine qualifying banks and credit unions at least every four years for compliance with mortgage-lending nondiscrimination laws.
• Requires mortgage lender and servicer examinations to include compliance with mortgage-lending nondiscrimination laws.
• Permits targeted or off-schedule bank and credit-union examinations when complaints or other evidence indicate possible discrimination.
• Requires written findings and corrective steps, and treats violations of applicable nondiscrimination laws as violations of the relevant state financial-services law.
• Allows the commissioner to charge examined institutions reasonable examination costs and keep examination findings confidential except for the institution, law enforcement, and regulators.

Who it affects ​

• Qualifying state-supervised banks and credit unions involved in mortgage lending.
• Residential mortgage lenders and servicers licensed by the state.
• Bank, credit-union, and licensee affiliates when documented evidence indicates unlawful activity involving the affiliate.

Context ​

The law covers compliance with specified federal and California fair-lending and civil-rights protections.