The purpose of this comment is to analyze the law on state regulation of federal financial institutions and then to apply that analysis to the Washington act in order to determine whether the act can validly be applied to national banks and federal savings and loan associations. Part II critically describes the Washington act and compares it with federal law on the same subject. Part III surveys the judicially developed limits on state regulation of federal financial institutions. Part IV then considers the validity of the Washington act as applied to federal financial institutions in light of the judicial limits discussed in Part 111. The comment concludes that the state prohibition of discrimination based on location is constitutionally applicable to national banks but is inapplicable to federal savings and loan associations. The comment further concludes that no federally chartered financial institution can be compelled to comply with the mortgage disclosure provision of the state act. Finally, a more limited version of the mortgage disclosure provision which may avoid constitutional infirmities is proposed.
Richard H. Cleva,
State Regulation of Federally Chartered Financial Institutions: Washington's Anti-Redlining Act,
54 Wash. L. Rev.
Available at: https://digitalcommons.law.uw.edu/wlr/vol54/iss2/5