HB 6495 - Equity and Fair Lending

• Prohibits financial institutions and federal banks from discriminating in home lending based on property location in low-income or moderate-income neighborhoods, effective January 1, 2022.

• Expands fair lending protections to prohibit discrimination based on race, national origin, or residence in protected geographic areas; applies to home loan lenders providing information or issuing loans.

• Allows armed forces members called to active duty after applying for a mortgage to have their application maintained on file for two years and two months, with right to finalize on original terms within 60 days of discharge if financial circumstances unchanged.

• Requires Connecticut commissioner to implement fair lending examination procedures by July 1, 2022, aligned with federal interagency standards and authorizes investigations of discriminatory lending patterns.

• Establishes private right of action for lending discrimination with damages, attorney fees, and court costs available; requires banks and credit unions to make residential loan products available in minority neighborhoods on terms no less favorable than other areas, effective October 1, 2021.