California's Holden Act (Housing Financial Discrimination Act, HSC §35800) addresses lending discrimination. All of the following lending practices are prohibited by the Holden Act EXCEPT:
Correct Answer
C) Denying a mortgage based on the applicant's failure to meet minimum income and credit requirements
The Housing Financial Discrimination Act of 1977, the Holden Act (Health and Safety Code §35800 et seq.), bars a lender from denying a mortgage loan or varying its terms because of the characteristics listed in Government Code §12955 — among them race, color, religion, sex, national origin, ancestry, marital status, familial status, source of income and disability — and from considering the racial, ethnic or religious composition of the neighborhood where the security property sits. What the Act preserves is ordinary underwriting: a lender may still weigh the applicant's income, credit history and ability to repay when that standard is a sound business practice applied to every applicant. A denial for failing those objective standards is therefore lawful.
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Under California law, a real estate agent owes a duty of honest and fair dealing to all parties in a transaction, not only to the agent's own client. Which provision most directly establishes this duty?
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