CaliforniaCalifornia adds mortgage discrimination checks for some banks and credit unions
California’s signed law calls for mortgage discrimination checks at banks and credit unions the regulator oversees that meet a federal criterion, and during exams of licensed home loan lenders and servicers.
What it does
California’s regulator must check banks and credit unions it oversees that meet a federal criterion for mortgage lending discrimination at least every four years. It may skip or space out checks if their most recent exam under this law showed full compliance.
During its existing exams of licensed home loan lenders and servicers, California’s regulator must also check whether they follow mortgage lending discrimination laws.
Breaking an applicable mortgage lending discrimination law also breaks the state law governing a bank, credit union, or licensed home loan lender or servicer. Willful violations by licensed lenders or servicers could bring misdemeanor charges.
The regulator must give covered banks and credit unions written findings and seek corrections. Findings can go only to those institutions, law enforcement officials, or state or federal regulators for further investigation and enforcement. Examiners’ reports are not public.
Argument forChecks of banks and credit unions the regulator oversees that meet a federal criterion could uncover mortgage discrimination and lead to corrections.
Argument againstLimits on who can see findings from covered bank and credit union checks could make it harder for borrowers to learn what the regulator found.
More detail
California’s financial regulator must check covered banks’ and credit unions’ records for compliance with mortgage lending discrimination laws. The checks cover banks and credit unions the regulator may examine that meet at least one criterion in a federal rule. The regulator may use an exam by a government body or mortgage organization named in the law if it provides the information needed. It may skip or space out checks if the institution showed full compliance in its most recent exam under this law. It may also make targeted checks for cause, including discrimination complaints. Each bank or credit union pays a fee no higher than the reasonable cost of its exam. The regular check is required at least once every four years, unless the regulator uses the full-compliance exception.
The regulator must add a mortgage lending discrimination check to its exams of licensed home loan lenders and servicers. This covers companies licensed to make or service residential home loans. Existing exams are required at least once every 48 months; the added check takes place during those exams.
Breaking an applicable mortgage lending discrimination law also counts as violating the state financial law governing the bank, credit union, lender, or servicer. This covers banks and credit unions governed by those state laws, and licensed residential mortgage lenders and servicers. The regulator may use its state financial law powers to enforce the violation. A willful violation by a licensed residential mortgage lender or servicer could bring a misdemeanor charge.
The regulator must give covered bank and credit union leaders written exam findings and take steps to correct violations. These rules cover findings from the new checks of covered banks and credit unions. Findings may go only to the institution, law enforcement officials, or other state or federal regulatory agencies for further investigation and enforcement. Examiners’ reports are not public records.
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Where it stands
- Introduced
- Passed Assembly
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Sep 30Chaptered by Secretary of State - Chapter 871, Statutes of 2026.Latest
- Sep 30Approved by the Governor Gavin Newsom.Became Law
- Sep 3Enrolled and presented to the Governor at 4 p.m.To Governor
- Aug 26Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 60. Noes 11. Page 6564.).Major
- Vote recorded AB 801 Bonta Concurrence in Senate Amendments. Result: pass.Lower
- Aug 25In Assembly. Concurrence in Senate amendments pending.
- Vote recorded 3rd Reading AB801 Bonta et al. By Smallwood-Cuevas. Result: pass.Upper
- Aug 25Read third time. Passed. Ordered to the Assembly. (Ayes 30. Noes 7.).Passed Senate
- Aug 19Read second time. Ordered to third reading.Minor
- Aug 18Read third time and amended. Ordered to second reading.Major
- Aug 17Read second time. Ordered to third reading.Minor
- Aug 13Read second time and amended. Ordered returned to second reading.Major
- Vote recorded Do pass as amended. Result: pass.Upper
- Aug 13From committee: Amend, and do pass as amended. (Ayes 5. Noes 2.) (August 13).Major
- Aug 3In committee: Referred to APPR. suspense file.Minor
- Vote recorded Placed on suspense file. Result: pass.Upper
- Jul 2Read second time and amended. Re-referred to Com. on APPR.Major
- Jul 1From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 11. Noes 2.) (June 30).Major
- Jun 30
- Vote recorded Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations]. Result: pass.Upper
- Jun 18From committee: Do pass and re-refer to Com. on JUD. (Ayes 5. Noes 2.) (June 17). Re-referred to Com. on JUD.Minor
- Jun 17
- Vote recorded Do pass, but first be re-referred to the Committee on [Judiciary]. Result: pass.Upper
- Jun 4From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on B. & F.I.Major
- 2025
- Jul 1In committee: Set, first hearing. Hearing canceled at the request of author.
- Jun 18Referred to Coms. on B. & F.I. and JUD.Minor
- Jun 4In Senate. Read first time. To Com. on RLS. for assignment.Minor
- Vote recorded AB 801 Bonta Assembly Third Reading. Result: pass.Lower
- Jun 3Read third time. Passed. Ordered to the Senate. (Ayes 45. Noes 15. Page 2027.)Passed Assembly
- May 27Read second time. Ordered to third reading.Minor
- May 23Read second time and amended. Ordered returned to second reading.Major
- Vote recorded Do pass as amended. Result: pass.Lower
- May 23From committee: Amend, and do pass as amended. (Ayes 11. Noes 2.) (May 23).Major
- May 23Assembly Rule 63 suspended. (Ayes 51. Noes 16. Page 1644.)
- May 14In committee: Set, first hearing. Referred to APPR. suspense file.Minor
- May 7Re-referred to Com. on APPR.Minor
- May 6Read second time and amended.Major
- May 5From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 5. Noes 1.) (April 28).Major
- Apr 28Joint Rule 62(a) suspended. (Page 1307.)
- Vote recorded Do pass as amended and be re-referred to the Committee on [Appropriations]. Result: pass.Lower
- Apr 22Re-referred to Com. on B. & F.Minor
- Apr 21From committee chair, with author's amendments: Amend, and re-refer to Com. on B. & F. Read second time and amended.Major
- Apr 1Re-referred to Com. on B. & F.Minor
- Mar 28From committee chair, with author's amendments: Amend, and re-refer to Com. on B.&F. Read second time and amended.Major
- Mar 28Referred to Com. on B.&F.Minor
- Feb 19From printer. May be heard in committee March 21.
- Feb 18Read first time. To print.Introduced
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