Senate Bill 2327

AN ACT TO PROHIBIT DISCRIMINATION AGAINST ANY APPLICANT IN A CREDIT TRANSACTION ON THE BASIS OF RACE, COLOR, RELIGION, NATIONAL ORIGIN, SEX, MARITAL STATUS, AGE OR SOURCE OF INCOME; TO PROVIDE EXCEPTIONS; TO REQUIRE COPIES OF ALL CREDIT VALUATIONS AND APPRAISALS TO BE FURNISHED BY THE CREDITOR TO THE APPLICANT; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. (1) Activities constituting discrimination. It shall be unlawful for any creditor to discriminate against any applicant, with respect to any aspect of a credit transaction:

(a) On the basis of race, color, religion, national origin, sex, marital status, age or source of income (provided the applicant has the capacity to contract);

(b) Because all or part of the applicant's income derives from any public assistance program; or

(2) Activities not constituting discrimination. It shall not constitute discrimination for purposes of this act for a creditor:

(a) To make an inquiry of marital status if such inquiry is for the purpose of ascertaining the creditor's rights and remedies applicable to the particular extension of credit and not to discriminate in a determination of credit-worthiness;

(b) To make an inquiry of the applicant's age or of whether the applicant's income derives from any public assistance program if such inquiry is for the purpose of determining the amount and probable continuance of income levels, credit history, or other pertinent element of credit-worthiness;

(c) To use any empirically derived credit system which considers age if such system is demonstrably and statistically sound in accordance with regulations of the appropriate federal agency, except that in the operation of such system the age of an elderly applicant may not be assigned a negative factor or value;

(d) To make an inquiry or to consider the age of an elderly applicant when the age of such applicant is to be used by the creditor in the extension of credit in favor of such applicant; or

(e) To make an inquiry under 15 USC Section 1691c-2 in accordance with the requirements of that section.

(3) Additional activities not constituting discrimination. It is not a violation of this section for a creditor to refuse to extend credit offered pursuant to:

(a) Any credit assistance program expressly authorized by law for an economically disadvantaged class of persons;

(b) Any credit assistance program administered by a nonprofit organization for its members or an economically disadvantaged class of persons; or

(c) Any special purpose credit program offered by a profit-making organization to meet special social needs if such refusal is required by or made pursuant to such program.

(4) Reason for adverse action; procedure applicable; "adverse action" defined.

(a) Within thirty (30) days after receipt of a completed application for credit, a creditor shall notify the applicant of its action on the application.

(b) Each applicant against whom adverse action is taken shall be entitled to a statement of reasons for such action from the creditor. A creditor satisfies this obligation by:

(i) Providing statements of reasons in writing as a matter of course to applicants against whom adverse action is taken; or

(ii) Giving written notification of adverse action which discloses 1. the applicant's right to a statement of reasons within thirty (30) days after receipt by the creditor of a request made within sixty (60) days after such notification, and 2. the identity of the person or office from which such statement may be obtained. Such statement may be given orally if the written notification advises the applicant of his right to have the statement of reasons confirmed in writing on written request.

(c) A statement of reasons meets the requirements of this section only if it contains the specific reasons for the adverse action taken.

(d) Where a creditor has been requested by a third party to make a specific extension of credit directly or indirectly to an applicant, the notification and statement of reasons required by this subsection may be made directly by such creditor, or indirectly through the third party, provided in either case that the identity of the creditor is disclosed.

(e) The requirements of paragraph (b), (c) or (d) may be satisfied by verbal statements or notifications in the case of any creditor who did not act on more than one hundred fifty (150) applications during the calendar year preceding the calendar year in which the adverse action is taken.

(f) For purposes of this subsection, the term "adverse action" means a denial or revocation of credit, a change in the terms of an existing credit arrangement, or a refusal to grant credit in substantially the amount or on substantially the terms requested. Such term does not include a refusal to extend additional credit under an existing credit arrangement where the applicant is delinquent or otherwise in default, or where such additional credit would exceed a previously established credit limit.

(5) Copies furnished to applicants.

(a) In general. Each creditor shall furnish to an applicant a copy of any and all written appraisals and valuations developed in connection with the applicant's application for a loan that is secured or would have been secured by a first lien on a dwelling promptly upon completion, but in no case later than three (3) days prior to the closing of the loan, whether the creditor grants or denies the applicant's request for credit or the application is incomplete or withdrawn.

(b) Waiver. The applicant may waive the three-day requirement provided for in paragraph (a) of this subsection, except where otherwise required in law.

(c) Reimbursement. The applicant may be required to pay a reasonable fee to reimburse the creditor for the cost of the appraisal, except where otherwise required in law.

(d) Free copy. Notwithstanding paragraph (c) of this subsection, the creditor shall provide a copy of each written appraisal or valuation at no additional cost to the applicant.

(e) Notification to applicants. At the time of application, the creditor shall notify an applicant in writing of the right to receive a copy of each written appraisal and valuation under this subsection.

(f) Valuation defined. For purposes of this subsection, the term "valuation" shall include any estimate of the value of a dwelling developed in connection with a creditor's decision to provide credit, including those values developed pursuant to a policy of a government-sponsored enterprise or by an automated valuation model, a broker price opinion, or other methodology or mechanism.

SECTION 2. This act shall take effect and be in force from and after July 1, 2021.