Cal. Code Regs. tit. 21 § 7109.6
The use of a rigid list of select on-site characteristics as an automatic basis for rejecting a loan can have a discriminatory effect against some neighborhoods and borrowers. For example, use of a rigid underwriting rule which establishes a minimum square footage requirement may be discriminatory. To the extent such lending policies do have a discriminatory effect, and there is no legitimate business purpose served, such policies shall constitute a violation of the Act. The financial institutions shall evaluate the on-site characteristics or physical conditions of each security property on a case-by-case basis.
Cal. Code Regs. Tit. 21, § 7109.6
Note: Authority cited: Section 35814, Health and Safety Code. Reference: Sections 35810- 35815, Health and Safety Code.