Under the Holden Act, California's Housing Financial Discrimination Act of 1977, a borrower who believes a state-chartered bank denied a home loan because of the character of the surrounding neighborhood is directed by the lender's Fair Lending Notice to complain to the bank's management or to:
Correct Answer
A) The California Department of Financial Protection and Innovation
The Holden Act, Health and Safety Code section 35800 and following, forbids a lender to consider the racial, ethnic, religious or economic composition of a neighborhood in deciding whether to make a home loan or on what terms. Every covered lender must hand the applicant a Fair Lending Notice, and that notice tells a borrower with a complaint to contact the lender's management or the Department of Financial Protection and Innovation, which examines state-chartered and state-licensed financial institutions for compliance. The Secretary of the Business, Consumer Services and Housing Agency monitors lending patterns and reports annually to the Legislature under section 35815, but the borrower's complaint is filed with the department that supervises the lender.
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Related Topics & Key Terms
Key Terms:
Related Concepts
RESPA is a federal law that requires lenders to provide borrowers with information about settlement costs, prohibits kickbacks and referral fees, and limits escrow account deposits. It applies to federally related mortgage loans.
The secondary mortgage market is where existing mortgage loans are bought and sold between lenders, investors, and government-sponsored enterprises (GSEs) like Fannie Mae, Freddie Mac, and Ginnie Mae.
TILA is a federal law that requires lenders to disclose the true cost of credit to borrowers, including the annual percentage rate (APR), total finance charges, and loan terms. It is implemented by Regulation Z.
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