Nondiscrimination violations now carry the same consequences as any CRMLA breach
California's mortgage regulator just picked up a new mandate - and the enforcement tools to back it up.
Governor Gavin Newsom signed Assembly Bill 801 on September 30, 2026, creating the California Fair Lending Examination Act. Authored by Assemblymember Rob Bonta, the law requires the state's Commissioner of Financial Protection and Innovation to review banks, credit unions, and CRMLA-licensed mortgage lenders and servicers for compliance with five federal and state anti-discrimination statutes. Reviews must happen at least once every four years.
For CRMLA licensees, the exam schedule is familiar - the commissioner already examines residential mortgage lenders and servicers at least every 48 months. AB 801 adds a mandatory fair lending component to that existing cycle. For state-chartered banks and credit unions, the requirement is brand new.
The five statutes on the checklist: the federal Equal Credit Opportunity Act, the federal Fair Housing Act, the California Fair Employment and Housing Act, the Holden Act, and the Unruh Civil Rights Act. Between them, they cover discrimination across race, color, national origin, religion, sex, familial status, disability, marital status, sexual orientation, and other protected categories at every stage of lending.
The real change is in the consequences. A violation of any of those nondiscrimination laws now counts as a violation of the Banking Law, the California Credit Union Law, or the CRMLA. Willful CRMLA violations are already punishable as misdemeanors. The commissioner can also pursue enforcement under Division 24 of the Financial Code.
The law builds in flexibility. The DFPI can accept a federal or GSE examination - from Fannie Mae or Freddie Mac - in place of its own, unless the commissioner decides that review falls short. Institutions that showed full compliance in their most recent exam can be exempted or examined less often.
Affiliates are in scope too. If an exam turns up documented evidence of unlawful activity between a lender and an affiliate, the commissioner can examine the affiliate on the same terms.
Exam reports stay confidential, shared only with the institution, law enforcement, and other regulators. Institutions pay for their own reviews, with fees capped at reasonable expenses.
For compliance officers at California mortgage shops, the message is plain: fair lending reviews are now part of the standard exam process, carrying the same weight as any other regulatory finding.
AB 801 was filed with the Secretary of State on September 30, 2026.
