Section 1000.620  Discrimination and Redlining Prohibited

a)         It shall be considered discriminatory to refuse to grant loans or to vary the terms of loans or the application procedures for loans because of:

1)         in the case of the proposed borrower, said borrower's race, color, religion, national origin, age, sex, or marital status; or

2)         in the case of a mortgage loan, the geographic location of the proposed security.

b)         A presumption of discrimination shall be attached to any inquiry regarding a loan authorized by the association's board of directors when

1)         an association refuses to accept a written application; or

2)         a loan application is rejected and not supported by adequate documentation which includes information sufficient to permit an informed non-interested party to reach the same conclusion as the lender concerning the disposition of the application.

c)         In cases of an association's non-compliance with this Section, the Director, by written notice, shall require that all inquiries for loans received from proposed borrowers be accepted in writing on application forms that provide information sufficient to make an informed decision concerning the final disposition of the respective loan application. Thereafter, the association shall submit a copy of each rejected application to the Director with a written statement setting forth the reason for rejecting the application, and a copy of each document supporting the decision.

d)         An association shall be required to comply with the Director 's directive issued pursuant to subsection (c) of this Section for a minimum of six months.  Should a presumption of discrimination exist at the close of the six-month period, the respective association shall be required to continue such reporting until such later date when the Director, by examination, determines that discriminatory practices have ceased and the association is so notified.

(Source:  Amended at 30 Ill. Reg. 18990, effective December 1, 2006)