Cal. Civ. Code § 910-2-2-12
Discrimination in purchasing loans
Operative Text
Sec. 12. (a) It shall be unlawful for any person or entity engaged in purchasing loans or other debts or securities which support the purchase, construction, improvement, repair, or maintenance of a dwelling or which are secured by residential real estate: (1) to refuse to purchase such loans, debts, or securities; or (2) to impose different terms or conditions for such purchases; because of race, color, religion, sex, handicap, familial status, or national origin. (b) Unlawful conduct under this section includes, but is not limited to, the following: (1) Purchasing loans or other debts or securities which relate to or are secured by dwellings in certain communities or neighborhoods but not in others because of race, color, religion, sex, handicap, familial status, or national origin of persons in such neighborhoods or communities. (2) Pooling or packaging loans or other debts or securities which relate to or are secured by dwellings differently because of race, color, religion, sex, handicap, familial status, or national origin. (3) Imposing or using different terms or conditions on marketing or selling securities issued on the basis of loans or other debts or securities which relate to or are secured by dwellings because of race, color, religion, sex, handicap, familial status, or national origin. (c) This section does not prevent consideration in purchasing a loan of factors justified by business necessity, including requirements of federal law, relating to a transaction's financial security or to protection against default or reduction of the value of the security. Thus, this section does not preclude consideration employed in a normal and prudent transaction, provided that no such factor may in any way relate to race, color, religion, sex, handicap, familial status, or national origin.
Section 910-2-2-12 of 910 IAC 2 prohibits any person or entity that purchases residential mortgage loans, debts, or securities from refusing to buy those instruments or applying different terms to their purchase based on the race, color, religion, sex, handicap, familial status, or national origin of borrowers or of the neighborhoods where the properties are located. The rule specifically calls out practices such as geographic redlining of loan pools, differential packaging of securities, and unequal marketing terms when those differences are driven by protected characteristics. Legitimate, race-neutral financial considerations—such as creditworthiness factors required by federal law or standard risk-assessment practices—remain permissible under the provision.
Plain English — not legal advice.
Property owners and managers who seek secondary-market financing should be aware that under 910 IAC 2 § 910-2-2-12, the investors and institutions purchasing their mortgage loans or securities are prohibited from treating those instruments differently based on the protected characteristics of borrowers or neighborhoods. A compliant operator generally documents that any loan terms, pooling decisions, or security structures are grounded in neutral, business-justified financial criteria rather than in the demographics of the borrower or community. Keeping records that demonstrate race-neutral underwriting and transaction criteria supports consistency with the standards this provision establishes.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under 910 IAC 2 § 910-2-2-12, tenants and prospective homeowners have a right to be free from discriminatory practices in the secondary mortgage market, meaning that loans tied to their homes cannot be refused, pooled, or priced differently because of their race, religion, sex, handicap, familial status, or national origin. If a person believes a lender or loan purchaser has applied different terms or refused to deal with their loan for discriminatory reasons, they may consider filing a complaint with the Indiana Civil Rights Commission or with the U.S. Department of Housing and Urban Development, which administers parallel federal fair-housing protections. Tenant-rights organizations and fair-housing councils can also help individuals understand whether the conduct they experienced may fall within the scope of this provision.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 15, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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