118 HR 8099 IH: Credit Report Enhancement Directive Act U.S. House of Representatives 2024-04-19 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I118th CONGRESS2d SessionH. R. 8099IN THE HOUSE OF REPRESENTATIVESApril 19, 2024Mr. Torres of New York (for himself and Mrs. Kim of California) introduced the following bill; which was referred to the Committee on Financial ServicesA BILLTo require the Director of the Federal Housing Finance Agency to assess the costs and benefits of requiring the enterprises obtain 2 rather than 3 credit reports and credit scores, and for other purposes.

1.

Short title

This Act may be cited as the Credit Report Enhancement Directive Act or the CRED Act.

2.

Analysis of costs and benefits required

(a)

In general

The Director of the Federal Housing Finance Agency shall conduct an analysis of the costs and benefits of a requirement that the enterprises obtain 2 rather than 3 credit reports and credit scores from the national consumer reporting agencies if the enterprise conditions the purchase of a residential mortgage loan on the delivery of a borrower’s credit score.(b)

Requirements

In conducting the analysis required under subsection (a), the Director should consider potential—(1)cost savings for mortgage borrowers;(2)changes in access to mortgage credit for consumers that may result from reviewing two, rather than three, credit reports and credit scores;(3)compliance and operating costs for mortgage lenders and servicers, the three national credit reporting agencies, and the enterprises; and(4)legal exposures for mortgage lenders and servicers that result from selecting two, rather than three, credit reports and credit scores.(c)

Public comment

(1)

In general

The Director shall publish the analysis required under this section in the Federal Register and invite public comment on the analysis for 90 days. (2)

Restriction

The Director may not establish a requirement that the enterprises obtain 2 rather than 3 credit reports and credit scores from the national consumer reporting agencies if the enterprise conditions the purchase of a residential mortgage loan on the delivery of a borrower’s credit score until the public comment period is closed.(d)

Definitions

In this section:(1)

Director

The term Director means the Director of the Federal Housing Finance Agency.(2)

Consumer report

The term consumer report has the meaning given that term in section 603(d) of the Fair Credit Reporting Act (15 U.S.C. 1681a(d).(3)

Credit score

The term credit score has the meaning given that term in section 302(b)(7)(A)(i) of the Federal National Mortgage Association Charter Act (12 U.S.C. 1717(b)(7)(A)(i)).(4)

National consumer reporting agency

The term national consumer reporting agency means a consumer reporting agency that compiles and maintains files on consumers on a nationwide basis as defined in section 603(p) of the Fair Credit Reporting Act (15 U.S.C. 1681a(p).(5)

Residential mortgage

The term residential mortgage has the meaning given that term in section 302(h) of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1451(h)).