California banks, mortgage lenders, and other financial institutions would face new scrutiny over their lending in low-income communities under legislation backed by state lawmakers.
The measure (AB 801) builds on the federal Community Reinvestment Act, a landmark anti-redlining law, and would set additional requirements for state-licensed financial institutions to provide California regulators with data about the race and income of their customers.
State regulators would use the data to rate the financial firms based on whether the companies are meeting the needs of low- and moderate-income communities in the areas where they operate, if the measure becomes law. ...