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HEALTH AND SAFETY CODE
SECTION 35810-35816

35810. (a) No financial institution shall discriminate in the
availability of, or in the provision of, financial assistance for the
purpose of purchasing, constructing, rehabilitating, improving, or
refinancing housing accommodations due, in whole or in part, to the
consideration of conditions, characteristics, or trends in the
neighborhood or geographic area surrounding the housing
accommodation, unless the financial institution can demonstrate that
consideration of these conditions in the particular case is required
to avoid an unsafe and unsound business practice.
(b) Nothing in this section shall be construed to prohibit any
financial institution from establishing a special loan program
designed to engender equality in housing in accordance with the
federal Fair Housing Act (42 U.S.C. Secs. 3601 et seq.) or similar
state and federal laws, so long as the program promotes housing
opportunities in ethnic minority or low-income neighborhoods.


35811. No financial institution shall discriminate in the
availability of, or in the provision of, financial assistance for the
purpose of purchasing, constructing, rehabilitating, improving or
refinancing housing accommodations due, in whole or in part, to the
consideration of race, color, religion, sex, marital status, national
origin, or ancestry.

35812. No financial institution shall consider the racial, ethnic,
religious, or national origin composition of a neighborhood or
geographic area surrounding a housing accommodation or whether or not
such composition is undergoing change, or is expected to undergo
change, in appraising a housing accommodation or in determining
whether or not, and under what terms and conditions, to provide
financial assistance for the purpose of purchasing, constructing,
rehabilitating, improving, or refinancing a housing accommodation.
No financial institution shall utilize appraisal practices that are
inconsistent with the provisions of this part.


35813. Nothing in this part shall (1) require a financial
institution to provide financial assistance if it is clearly evident
that occupancy of the housing accommodation would create an imminent
threat to the health or safety of the occupant, or (2) be construed
to preclude a financial institution from considering the fair market
value of the property which will secure the proposed loan.

35814. The secretary shall issue such rules, regulations,
guidelines, and orders as are necessary to interpret and enforce the
provisions of this part and to affirmatively further the provisions
of this part. The secretary may delegate the responsibilities
imposed by this section to one or more departments within the agency
that license persons or organizations engaged in a business related
to, or affecting compliance with, this part.

35815. (a) The secretary or the secretary's designee shall monitor
and investigate the lending patterns and practices of financial
institutions for compliance with this part, including the lending
patterns and practices for housing accommodations which are not
occupied by the owner. If a finding is made that such patterns or
practices violate the provisions of this part the secretary or the
secretary's designee shall take such action as will effectuate the
purposes of this part. In addition to other remedies provided by
this part or other provisions of law, the secretary may recommend to
the Treasurer that state funds not be deposited in a financial
institution where the secretary has made a finding that such
financial institution has engaged in a lending pattern and practice
which violates this part.
(b) The secretary shall annually report to the Legislature on the
activities of the appropriate regulatory agencies and departments in
complying with this part. The report shall include a description of
any actions taken by the secretary or the secretary's designee to
remedy patterns or practices the secretary determines are in
violation of this part.


35816. The secretary shall adopt regulations applicable to all
persons who are in the business of originating residential mortgage
loans in this state, including, but not limited to, insurers,
mortgage bankers, investment bankers and credit unions and who are
not depository institutions within the meaning of subsection (2) of
Section 2802 of Title 12 of the United States Code. The regulations
for residential mortgage loans shall impose substantially the same
reporting requirements by geographic area and loan product as are
imposed by the federal Home Mortgage Disclosure Act of 1975, as
amended (12 U.S.C. Sec. 2801 et seq.).
This section does not apply to subsidiaries of depository
institutions or subsidiaries of depository institution holding
companies which are currently reporting to a federal or state
regulatory agency as provided by the Home Mortgage Disclosure Act of
1975, as amended (12 U.S.C. Sec. 2081 et seq.) or are subject to
substantially the same reporting requirements by geographic area and
loan product pursuant to an act of a federal or state regulatory
agency.

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