Legal Question in Real Estate Law in California

We refinanced our house in California with the same bank in 2012, however we were employed for less than 2 years but the refi was approved. This year we needed to refi again to consolidate a Home Equity Loan; however, the same bank rejected our refi loan application due to being employed too short, but this time we were each employed longer than the last time.

Is it legal for banks to reject loans due to employment length? We felt the bank discriminated since we were employed longer than the previous refi application. Also, our income is 50% higher than the previous loan inquiry. By the way, we went to another lender a month afterwards and the refi was approved with just one of us employed.


Asked on 10/18/16, 11:10 am

1 Answer from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

There is a relatively short list of reasons for which banks cannot disapprove loan applications, such as race, sex or sex preference, religion, national origin, etc. but other than such 'discriminatory' reasons, they can accept or reject whom they choose. Credit decisions are not regulated.

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Answered on 10/18/16, 1:17 pm


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