Sec. 36a-737. (Formerly Sec. 36-445). Discrimination in making of home purchase, home improvement and mortgage loans. Applications submitted by members of reserves or National Guard.
Sec. 36a-737. (Formerly Sec. 36-445). Discrimination in making of home purchase, home improvement and mortgage loans. Applications submitted by members of reserves or National Guard. (a) No financial institution and no federal bank
or federal credit union shall discriminate, on a basis that is arbitrary or unsupported by
a reasonable analysis of the lending risks associated with the applicant for a given loan
or the condition of the property to secure it, in the granting, withholding, extending,
modifying, renewing or in the fixing of the rates, terms, conditions or provisions of any
home purchase loan, home improvement loan or other mortgage loan on one-to-four-family owner-occupied residential real property, solely because such property is located
in a low-income or moderate-income neighborhood or geographical area, provided it
shall not be a violation of this section if the home purchase loan, home improvement
loan or other mortgage loan is made pursuant to a specific public or private program,
the purpose of which is to increase the availability of home purchase loans, home improvement loans or other mortgage loans within a low-income or moderate-income
neighborhood or geographical area in which such investment capital has generally been
denied.
(b) If a member of any reserve component of the armed forces of the United States,
as defined in section 27-103, or a member of the National Guard, is called into active
duty after submitting an application to a financial institution, federal bank or federal
credit union for a home purchase loan, home improvement loan or other mortgage loan
on one-to-four-family owner-occupied residential real property and before the financial
institution, federal bank or federal credit union makes a determination on the application,
such financial institution, federal bank or federal credit union shall maintain the application on file for two years and two months after such member is called into active duty,
if the member submits, not later than thirty days after being called into active duty, a
written statement to the financial institution, federal bank or federal credit union indicating that the member (1) has been called into active duty, and (2) requests that the application be maintained on file. If the applicant returns from active duty not later than two
years after submitting an application under this section and submits a written statement
to the financial institution, federal bank or federal credit union not later than sixty days
after being discharged from active duty verifying that there has been no material change
in the applicant's income, assets, debts and employment, the financial institution, federal
bank or federal credit union shall finalize processing of the application in accordance
with the same terms and conditions that it made available to the applicant at the time
of application, provided the financial institution, federal bank or federal credit union
shall offer to the applicant any different terms and conditions that the financial institution, federal bank or federal credit union is offering to the public at the time of the
applicant's return from active duty.
(P.A. 77-153, S. 3; P.A. 93-186, S. 2, 9; P.A. 94-161, S. 2; P.A. 95-155, S. 28, 29; P.A. 03-24, S. 1; P.A. 05-46, S. 14.)
History: P.A. 93-186 deleted references to "mortgage loans" in favor of "home purchase loan" and made technical
corrections for clarity and accuracy, effective June 23, 1993; P.A. 94-161 included "other mortgage loans" within the
antidiscrimination provision and changed "specific neighborhood" to "low-income or moderate-income neighborhood";
Sec. 36-445 transferred to Sec. 36a-737 in 1995; P.A. 95-155 applied section to federal banks, effective June 27, 1995;
P.A. 03-24 designated existing provisions as Subsec. (a) and added Subsec. (b) re loan applications by members of reserves
or National Guard called into active duty, effective July 1, 2003; P.A. 05-46 applied section to federal credit unions.