Section 7109.2 - Evaluating CreditworthinessIn the evaluation of an individual's creditworthiness, the financial institution should take into consideration all relevant factors which indicate an ability to repay the obligation. A financial institution shall consider the following:
(a) A policy of favoring applicants who have previously owned homes over applicants who have not may perpetuate prior discrimination;(b) In some instances, past credit difficulties may have resulted from discriminatory practices;(c) Excessively restrictive practices in judging a criminal record may result in discrimination;(d) The practice of disallowing income regularly received from overtime and production bonuses and from part-time employment may be discriminatory;(e) Greater emphasis should be placed on the earnings of the applicant than on other factors, such as educational level;(f) Job or residential changes may indicate upward mobility; and(g) Preferring applicants who have done business with the financial institution can perpetuate previous discriminatory policies.Cal. Code Regs. Tit. 21, § 7109.2
Note: Authority cited: Section 35814, Health and Safety Code. Reference: Sections 35810- 35815, Health and Safety Code.