California Code of Regulations › Title 21 - Public Works › Division 3 - California State Transportation Agency › Chapter 4 - Regulations Pursuant to the Housing Financial Discrimination Act of 1977 › Article 1 - General Provisions › Section 7102 - Definitions

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) "Agency"
				  means the Business, Transportation & Housing Agency.
(b) "Applicant" means any person who makes an
				  oral or written request for financial assistance or who has received financial
				  assistance from a financial institution and includes any person who is or may
				  be contractually liable for the financial assistance other than a guarantor,
				  surety, endorser, or similar party.
(c) "Application" means an oral or written
				  request for financial assistance that is made in accordance with procedures
				  established by a financial institution for the type of credit requested. A
				  completed application means an application in connection with which a financial
				  institution has received all the information that the financial institution
				  regularly obtains and considers in evaluating applications for the amount and
				  type of credit requested (including, but not limited to, credit reports, any
				  additional information requested from the applicant, and any approvals or
				  reports by governmental agencies or other persons that are necessary to
				  guarantee, insure, or provide security for the credit or collateral), provided,
				  however, that the financial institution has exercised reasonable diligence in
				  obtaining such information. Where an application is incomplete respecting
				  matters that the applicant can complete, the financial institution shall make a
				  reasonable effort to notify the applicant of the incompleteness and shall allow
				  the applicant a reasonable opportunity to complete the application. The term
				  does not include the use of an account or line of credit to obtain an amount of
				  credit that does not exceed a previously established credit limit.
(d) "Bank" means state-chartered bank or
				  national banking association.
(e)
				  "Depository institution" means a financial institution which accepts savings or
				  checking deposits from the public and shall only include commercial banks and
				  savings and loan associations.
(f)
				  "Fair market value" means the highest price which a property will bring in a
				  competitive and open market under all conditions requisite to fair sale, the
				  buyer and seller acting prudently and knowledgeably.
(g) "Financial assistance" means a loan or
				  advance of credit secured by real property or a public grant where more than 50
				  percent of the proceeds are for the purchase, construction, rehabilitation,
				  improvement or refinancing of a housing accommodation. The term "financial
				  assistance" includes, but is not limited to, combination mobile home and land
				  loans or contracts, combination personal property and real property secured
				  loans, and the purchase of secured home improvement contracts. A financial
				  institution may rely upon the stated written purpose of the loan as provided by
				  the borrower.
(h) "Financial
				  institution" includes any bank, savings and loan association, or other
				  institution in this state, including a public agency, that regularly makes,
				  arranges, or purchases financial assistance for the purchase, construction,
				  rehabilitation, improvement, or refinancing of housing
				  accommodations.
(i) "Home
				  improvement" loan means a loan or advance of credit secured by real property
				  made for the purpose of financing repairs, alterations, rehabilitation or
				  fixtures, except furnishings, on a housing accommodation. The terms
				  "improvement" and "improving" relate to a home improvement loan. A financial
				  institution shall be able to rely upon the stated written purpose of the loan
				  as provided by the applicant or the application for financial
				  assistance.
(j) "Housing
				  accommodation" includes any improved or unimproved real property, or portion
				  thereof, that (1) is used or is intended to be used as a residence, (2) is or
				  will be occupied by the owner, and (3) contains not more than four dwelling
				  units. "Housing accommodation" shall also include any residential dwelling
				  containing not more than four dwelling units where the owner thereof, whether
				  or not the owner will occupy the property, applied or has applied for a secured
				  home improvement loan from a financial institution, 50 percent of the proceeds
				  of which loan will be used to improve the security property. "Housing
				  accommodation" also means "subject property" and the "security property"
				  wherever those phrases are used in this Subchapter 4.
(k) "Inquiry" means a written, or an oral
				  in-person, request for information about the rates, fees, terms, and conditions
				  of financial assistance the institution may or may not offer.
(l) "Other institution in this state"
				  includes, but is not limited to, the following: real estate brokers when
				  engaged in mortgage banking, state- or federally-chartered credit union,
				  insurance company, industrial loan company, residential mortgage lenders,
				  finance lenders, California Housing Finance Agency, Department of Veterans
				  Affairs or other public entities, home improvement contractors, heating and air
				  conditioning companies, or any institution which maintains offices in this
				  state or which conducts business through authorized agents or correspondents
				  doing business in California.
(m)
				  "Refinancing" means the extension or other modification of an existing loan
				  initially made or previously refinanced for the purpose of purchasing,
				  constructing, rehabilitating, or improving housing accommodations, whether by
				  modification of the original loan or its payoff through a new loan, whether by
				  the holder of the original loan or a different financial institution, and
				  whether or not additional funds are advanced for these purposes. "Refinancing"
				  does not include any subsequent modification of terms where such modification
				  was agreed to under the original contract, or changes in the interest rate of a
				  loan written pursuant to Section
				  1916.5 of the
				  Civil Code or any loan made pursuant to Section
				  1237 or Section
				  7153.9 of
				  the Financial Code.
(n) "Regularly"
				  means at least twelve or more transactions annually during the immediately
				  preceding calendar year that in aggregate total more than $500,000 in value.
				  "Regularly" does not include loans made by financial institutions to its own
				  employees.
(o) "Savings and loan
				  association" means those savings and loan associations which are subject to the
				  jurisdiction of the Act.
(p)
				  "Secretary" means the Secretary of the Business and Transportation
				  Agency.
(q) "Secretary's designee"
				  means the Commissioner of Financial Institutions in the case of state-licensed
				  savings and loan associations, the Commissioner of Financial Institutions in
				  the case of state banks, the Commissioner of Financial Institutions in the case
				  of state credit unions and industrial loan companies, the Commissioner of
				  Corporations in the case of finance lenders, licensed under the California
				  Finance Lenders Law, and residential mortgage lenders licensed under the
				  California Residential Mortgage Lending Act, the Commissioner of Insurance in
				  the case of insurance companies, the Real Estate Commissioner in the case of
				  real estate brokers when engaged in mortgage banking, and any other
				  governmental entity or any other individual whom the Secretary designates to
				  effectuate the purposes of the Act. Subparagraphs (p) and (q) of Section
				  7102 shall be used interchangeably
				  throughout these regulations.
(r)
				  For purposes of compliance with these regulations by a credit union, the words
				  "applicant," "inquirer," "general public," "persons," and "public" as used in
				  these regulations mean "members or persons eligible for membership in that
				  credit union."
1. Change
					 without regulatory effect of subsection (q); designated effective 4-1-87
					 (Register 87, No. 7).
2. Change without regulatory effect amending
					 subsection (q) filed 1-10-96 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 96, No. 2).
3. Change without regulatory
					 effect amending subsections (a), (l) and (q) filed 2-5-2002 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 2002, No. 6).
Note: Authority cited: Section
						35814,
						Health and Safety Code. Reference: Section
						35805,
						Health and Safety Code.