Plain English Breakdown
The official text refers to 'applicable nondiscrimination laws as specified' without listing every specific law or protected trait in this summary.
California Fair Lending Examination Act
This law requires the Commissioner of Financial Protection and Innovation to check banks, credit unions, and mortgage lenders every four years for fair lending rules.
What This Bill Does
- Requires the commissioner to examine books and records at least once every four years under the Banking Law, Credit Union Law, or Residential Mortgage Lending Act.
- Checks if entities follow applicable nondiscrimination laws as specified in the bill.
- Orders the commissioner to write a report of findings and send it to the entity's principals, officers, or directors.
- Requires officials to take steps to fix any violations found during an examination.
- Makes breaking fair lending rules also count as breaking state banking, credit union, or mortgage laws.
Who It Names or Affects
- Banks, credit unions, and residential mortgage lenders subject to the commissioner's authority in California.
- The Department of Financial Protection and Innovation and its Commissioner.
- Officers, directors, employees, and agents of these institutions who may be questioned under oath.
Terms To Know
- Nondiscrimination law
- Rules that stop lenders from treating people unfairly based on protected traits as specified in the bill.
- Commissioner of Financial Protection and Innovation
- The state official who runs the department responsible for watching over banks and lending companies.
Limits and Unknowns
- Reports from these examinations cannot be shared with anyone other than the bank, law enforcement officials, or regulatory agencies.
- The bill states no reimbursement is required for local costs but does not explain the detailed reason why in this summary.