IN HB1326 | 2022 | Regular Session
Status
Spectrum: Partisan Bill (Democrat 1-0)
Status: Introduced on January 11 2022 - 25% progression, died in committee
Action: 2022-01-11 - First reading: referred to Committee on Financial Institutions and Insurance
Pending: House Financial Institutions and Insurance Committee
Text: Latest bill text (Introduced) [PDF]
Status: Introduced on January 11 2022 - 25% progression, died in committee
Action: 2022-01-11 - First reading: referred to Committee on Financial Institutions and Insurance
Pending: House Financial Institutions and Insurance Committee
Text: Latest bill text (Introduced) [PDF]
Summary
Discriminatory lending and appraisal practices. Adds the following to the duties of the homeowner protection unit (unit) of the office of the attorney general: (1) Cooperating with federal, state, and local law enforcement agencies in investigating violations of the federal Fair Housing Act. (2) Investigating and enforcing: (A) existing law prohibiting improperly influencing the preparation of a real estate appraisal; and (B) the bill's provisions prohibiting discriminatory lending and appraisal practices in connection with residential real estate related transactions. Prohibits a person whose business includes engaging in residential real estate related transactions from doing any of the following: (1) Discriminating against any person in: (A) making available a residential real estate transaction; or (B) establishing the terms and conditions of a residential real estate transaction; on the basis of race, color, religion, sex, disability, familial status, or national origin. (2) Denying a creditworthy applicant a mortgage loan on the basis of any of these characteristics of: (A) the applicant; or (B) residents of the neighborhood in which the real estate is located; if the applicant is otherwise eligible for the mortgage loan. (3) Making an excessively low appraisal of the value of the real estate that is the subject of a mortgage loan (as compared to the purchase price) on the basis of any of these characteristics of: (A) the applicant; or (B) residents of the neighborhood in which the real estate is located. Specifies that these prohibitions do not prohibit a person whose business includes engaging in residential real estate related transactions from: (1) either: (A) denying a mortgage loan; or (B) granting a mortgage loan on more stringent terms and conditions; based on the applicant's creditworthiness or other economic factors, and without regard to any of the characteristics set forth in the bill; or (2) taking into consideration factors other than the characteristics set forth in the bill in preparing a real estate appraisal. Establishes the fair housing practices fund (fund), to be administered by the Indiana housing and community development authority (authority), for the purpose of: (1) providing down payment assistance, financial assistance for closing costs, and restitution for individuals determined to have been injured by a violation the bill's provisions prohibiting discriminatory lending and appraisal practices; and (2) providing grants for: (A) community education and outreach efforts; and (B) community reinvestment initiatives; for neighborhoods or communities determined to have been targeted or adversely impacted by a violation of the bill's provisions prohibiting discriminatory lending and appraisal practices. Provides that the fund consists of: (1) civil penalties collected for violations of the bill's provisions prohibiting discriminatory lending and appraisal practices; (2) any amounts deposited in the fund as a result of a settlement agreement or final judgment in an action brought for a violation of these provisions; (3) gifts and grants to the fund; and (4) appropriations from the general assembly. Requires the authority to adopt rules to develop certain criteria and procedures necessary to: (1) administer the fund; and (2) provide assistance from the fund. Requires the unit to: (1) amend the form that creditors are required to provide to mortgage loan applicants to include information about how prospective borrowers can report suspected violations of the bill's provisions prohibiting discriminatory lending and appraisal practices; and (2) accept through the unit's established: (A) electronic mail address; and (B) toll free telephone number; complaints concerning these suspected violations. Provides that a person that knowingly or intentionally violates the bill's provisions prohibiting discriminatory lending and appraisal practices: (1) commits an act that is actionable by an aggrieved individual and the attorney general under the deceptive consumer sales act; and (2) is liable for a civil penalty of $200 per violation. Provides that any civil penalty collected shall be deposited in the fund. Requires the real estate appraiser licensure and certification board (board) to, not later than January 1, 2023, submit recommendations to the Indiana real estate commission (commission) concerning the following: (1) Rules requiring as a condition of initial licensure or certification at least one hour of instruction in cultural competency training, and at least one hour of instruction in implicit bias training. (2) Rules requiring as a condition of renewal for licensure and certification at least one hour of continuing education instruction in cultural competency training, and at least one hour of continuing education instruction in implicit bias training. (3) Policies to foster diversity in the real estate appraisal profession. Requires the commission to adopt the recommended rules not later than July 1, 2023. Provides that the office of the attorney general and the professional licensing agency (agency) may use an existing investigative fund to investigate and enforce: (1) existing law prohibiting improperly influencing the preparation of a real estate appraisal; and (2) the bill's provisions prohibiting discriminatory lending and appraisal practices. Requires the board to submit, on at least a quarterly basis, a request to the attorney general for certain information concerning complaints filed against real estate appraisers. Requires the agency, on behalf of the board, to publish and update on the board's web page, on at least a quarterly basis: (1) the aggregate complaint data received by the board in the most recent quarterly report from the attorney general; and (2) to the extent not confidential, the names and business locations of all real estate appraisers who have had complaints filed and prosecuted against them. Beginning in 2024, requires the agency, on behalf of the board, to submit an annual report to the legislative council concerning: (1) the cultural competency and implicit bias training educational requirements adopted by the commission; and (2) the policies to foster diversity in the real estate appraisal profession implemented by the commission, including the board's assessment of the effectiveness of the policies.
Title
Discriminatory lending and appraisal practices.
Sponsors
History
| Date | Chamber | Action |
|---|---|---|
| 2022-01-11 | House | First reading: referred to Committee on Financial Institutions and Insurance |
| 2022-01-11 | House | Authored by Representative Pryor |
