The Legislature finds and declares:

(a)  The subject of housing is of vital statewide importance to the health, safety, and welfare of the residents of the state.

(b)  A healthy housing market, where residents of this state have a choice of housing opportunities and where the housing consumer may effectually choose within a free market place, is necessary to achieve a healthy state economy.

(c)  The equities that California residents accumulate in family homes must be protected and conserved.

(d)  The Legislature has the responsibility to direct the discontinuance of injurious practices.

(e)  With respect to certain geographic areas, financial institutions have sometimes denied financial assistance or approved assistance on terms less favorable than are usually offered in other geographic areas, regardless of the creditworthiness of the applicant or the condition of the real-property security offered, and this practice has the following effects:

(1)  Contributes to the decline of available family housing in such areas and is likely to continue to do so.

(2)  Limits the choice of housing opportunities and inhibits the operation of a healthy housing market in such areas.

(3)  Leads to the abandonment of such areas.

(4)  Adversely affects the health, welfare, and safety of the residents of this state.

(5)  Undermines the value of the equity of current owners of property in such areas.

(6)  Inhibits the granting of amortized loans.

(7)  Perpetuates racially and economically segregated neighborhoods and geographic areas.

(f)  The practice of denying mortgage loans or adversely varying the terms of such loans because of conditions, characteristics, or trends in a neighborhood or geographic area that are unrelated to the creditworthiness of the applicant or the value of the real property security offered is against public policy.

(Added by Stats. 1977, Ch. 1140.)