California real estate disclosure laws California Real Estate Disclosures | Page 62

•

The request of the prospective borrower; or

•

When the lender first provides information concerning adjustable-rate
mortgages or credit sales, other than by direct mail advertising.

Federally regulated lenders and lenders who have adopted, entitled to adopt,
or are otherwise subject to federal rules (alternative mortgage lenders) may
achieve compliance by providing the disclosures at the same time and under
the same circumstances when the lender/creditor makes federally required
disclosures pursuant to the Truth-in-Lending Act (TILA).
Any lender who fails to provide the information required by this law may be
enjoined and may be liable for actual damages, court costs and reasonable
attorney’s fees. Federal Truth-in-Lending disclosures made in connection
with adjustable-rate loans should include the worst case and best case
scenarios.
(12 U.S.C. § 3801 et. seq.; 12 C.F.R. PART 226 (REG. Z, TRUTH IN
LENDING); 12 C.F.R. § 560.210; CAL. CIV. § 1921)

N. Equal Credit Opportunity Act – Notice of Adverse Action
– Regulation B
The Equal Credit Opportunity Act makes it unlawful for any creditor to
discriminate against any credit applicant with respect to any aspect of a
credit transaction on the basis of race, color, religion, national origin or
ancestry, sex, marital status, or age (provided the applicant has the capacity
to contract). The law prohibits discrimination against applicants who receive
income from a public assistance program or against an applicant who has
exercised, in good faith, any right under the Consumer Credit Protection
Act. In all cases, credit guidelines must be applied in a uniform manner.
A lender/creditor who denies an application for credit must provide the
applicant with a statement of reasons or a written notification of the
applicant’s right to obtain a statement of reasons. The statement and notice
of adverse action must generally be provided within 30 days after receiving
the completed loan application. (In certain credit transactio