SB 183 - Fair Lending Summary

• Effective January 1, 2023, redefines "financial institution" to include mortgage lenders originating 25+ closed-end or 100+ open-end mortgage loans in preceding two years (changed from prior 10% loan origination volume threshold).

• Prohibits financial institutions and home loan lenders from discriminating in lending based on race, creed, color, national origin, ancestry, sex, gender identity, marital status, age, lawful income source, familial status, or veteran status for both applicants and residents in geographic areas.

• Allows discriminated applicants to sue in court for damages, reasonable attorney fees, and court costs, but prohibits class actions; each case must be brought individually unless defendants consent to consolidation.

• Requires the commissioner to implement fair lending examination procedures by July 1, 2024, consistent with federal interagency procedures under the Fair Housing Act and Equal Credit Opportunity Act.

• Mandates banks and community credit unions assess and make residential loan products available in low and moderate-income neighborhoods and census tracts with racial minorities exceeding 50% of population, with loan terms not based on racial composition of the assessment area (effective January 1, 2024).