[House Report 117-349]
[From the U.S. Government Publishing Office]
117th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 117-349
======================================================================
FAIR LENDING FOR ALL ACT
_______
June 7, 2022.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Ms. Waters, from the Committee on Financial Services, submitted the
following
R E P O R T
[To accompany H.R. 166]
[Including cost estimate of the Congressional Budget Office]
The Committee on Financial Services, to whom was referred
the bill (H.R. 166) to establish an Office of Fair Lending
Testing to test for compliance with the Equal Credit
Opportunity Act, to strengthen the Equal Credit Opportunity Act
and to provide for criminal penalties for violating such Act,
and for other purposes, having considered the same, reports
favorably thereon with amendments and recommends that the bill
as amended do pass.
CONTENTS
Page
Purpose and Summary.............................................. 4
Background and Need for Legislation.............................. 4
Section-by-Section Analysis of the Legislation................... 5
Hearings......................................................... 6
Committee Consideration.......................................... 6
Committee Votes.................................................. 7
Committee Oversight Findings..................................... 9
Statement of Performance Goals and Objectives.................... 9
New Budget Authority and C.B.O. Cost Estimate.................... 9
Committee Cost Estimate.......................................... 13
Federal Mandates Statement....................................... 13
Advisory Committee Statement..................................... 13
Applicability to Legislative Branch.............................. 13
Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
Benefits....................................................... 13
Duplicative Federal Programs..................................... 13
Changes to Existing Laws......................................... 14
The amendments are as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Fair Lending for All Act''.
SEC. 2. OFFICE OF FAIR LENDING TESTING.
(a) Establishment.--There is established within the Bureau of
Consumer Financial Protection an Office of Fair Lending Testing
(hereinafter referred to as the ``Office'').
(b) Director.--The head of the Office shall be a Director, who
shall--
(1) be appointed to a 5-year term by, and report to, the
Director of the Bureau of Consumer Financial Protection;
(2) appoint and fix the compensation of such employees as are
necessary to carry out the duties of the Office under this
section; and
(3) provide an estimated annual budget to the Director of the
Bureau of Consumer Financial Protection.
(c) Civil Service Position.--The position of the Director shall be a
career position within the civil service.
(d) Testing.--
(1) In general.--The Office, in consultation with the
Attorney General and the Secretary of Housing and Urban
Development, shall conduct testing of compliance with the Equal
Credit Opportunity Act by creditors, through the use of
individuals who, without any bona fide intent to receive a
loan, pose as prospective borrowers for the purpose of
gathering information.
(2) Referral of violations.--If, in carrying out the testing
described under paragraph (1), the Office believes a person has
violated the Equal Credit Opportunity Act, the Office shall
refer such violation in writing to the Attorney General for
appropriate action.
(e) Report to Congress.--Section 707 of the Equal Credit Opportunity
Act (15 U.S.C. 1691f) is amended by adding at the end the following:
``In addition, each report of the Bureau shall include an analysis of
the testing carried out pursuant to section 2 of the Fair Lending for
All Act, and each report of the Bureau and the Attorney General shall
include a summary of criminal enforcement actions taken under section
706A.''.
SEC. 3. PROHIBITION ON CREDIT DISCRIMINATION.
(a) In General.--Subsection (a) of section 701 of the Equal Credit
Opportunity Act (15 U.S.C. 1691) is amended to read as follows:
``(a) It shall be unlawful to discriminate against any person, with
respect to any aspect of a credit transaction--
``(1) on the basis of race, color, religion, national origin,
sex (including sexual orientation and gender identity), marital
status, or age (provided the applicant has the capacity to
contract);
``(2) on the basis of the person's zip code, or census tract;
``(3) because all or part of the person's income derives from
any public assistance program; or
``(4) because the person has in good faith exercised any
right under the Consumer Credit Protection Act.''.
(b) Removal of Certain References to Creditors and Applicants and
Definition Added.--The Equal Credit Opportunity Act (15 U.S.C. 1691 et
seq.) is amended--
(1) in section 701(b)--
(A) by striking ``applicant'' each place such term
appears and inserting ``person''; and
(B) in paragraph (2), by striking ``applicant's''
each place such term appears and inserting
``person's'';
(2) in section 702--
(A) by redesignating subsection (g) as subsection
(h); and
(B) by inserting after subsection (f) the following:
``(g) The term `aggrieved person' includes any person who--
``(1) claims to have been injured by a discriminatory credit
practice; or
``(2) believes that such person will be injured by a
discriminatory credit practice.'';
(3) in section 704A--
(A) in subsection (b)(1), by striking ``applicant''
each place such term appears and inserting ``aggrieved
person''; and
(B) in subsection (c), by striking ``applicant'' and
inserting ``aggrieved person'';
(4) in section 705--
(A) by striking ``the applicant'' each place such
term appears and inserting ``persons''; and
(B) in subsection (a)--
(i) by striking ``a creditor to take'' and
inserting ``taking''; and
(ii) by striking ``applicant'' and inserting
``person''; and
(5) in section 706--
(A) by striking ``creditor'' each place such term
appears and inserting ``person'';
(B) by striking ``creditor's'' each place such term
appears and inserting ``person's'';
(C) by striking ``creditors'' each place such term
appears and inserting ``persons''; and
(D) in subsection (f), by striking ``applicant'' and
inserting ``aggrieved person''.
SEC. 4. CRIMINAL PENALTIES FOR VIOLATIONS OF THE EQUAL CREDIT
OPPORTUNITY ACT.
(a) In General.--The Equal Credit Opportunity Act (15 U.S.C. 1691 et
seq.) is amended by inserting after section 706 the following:
``Sec. 706A. Criminal penalties
``(a) Individual Violations.--Any person who knowingly and willfully
violates this title shall be fined not more than $50,000, or imprisoned
not more than 1 year, or both.
``(b) Pattern or Practice.--
``(1) In general.--Any person who engages in a pattern or
practice of knowingly and willfully violating this title shall
be fined not more than $100,000 for each violation of this
title, or imprisoned not more than twenty years, or both.
``(2) Personal liability of executive officers and directors
of the board.--Any executive officer or director of the board
of an entity who knowingly and willfully causes the entity to
engage in a pattern or practice of knowingly and willfully
violating this title (or who directs another agent, senior
officer, or director of the entity to commit such a violation
or engage in such acts that result in the director or officer
being personally unjustly enriched) shall be--
``(A) fined in an amount not to exceed 100 percent of
the compensation (including stock options awarded as
compensation) received by such officer or director from
the entity--
``(i) during the time period in which the
violations occurred; or
``(ii) in the one to three year time period
preceding the date on which the violations were
discovered; and
``(B) imprisoned for not more than 5 years.''.
(b) Clerical Amendment.--The table of contents for the Equal Credit
Opportunity Act (15 U.S.C. 1691 et seq.) is amended by inserting after
the item relating to section 706 the following:
``706A. Criminal penalties.''.
SEC. 5. REVIEW OF LOAN APPLICATIONS.
(a) In General.--Subtitle C of the Consumer Financial Protection Act
of 2010 (12 U.S.C. 5531 et seq.) is amended by adding at the end the
following:
``SEC. 1038. REVIEW OF LOAN APPLICATIONS.
``(a) In General.--The Bureau shall carry out reviews of loan
applications and the process of taking loan applications being used by
covered persons to ensure such applications and processes do not
violate the Equal Credit Opportunity Act or any other Federal consumer
financial law.
``(b) Prohibition and Enforcement.--If the Bureau determines under
subsection (a) that any loan application or process of taking a loan
application violates the Equal Credit Opportunity Act or any other
Federal consumer financial law, the Bureau shall--
``(1) prohibit the covered person from using such application
or process; and
``(2) take such enforcement or other actions with respect to
the covered person as the Bureau determines appropriate.''.
(b) Clerical Amendment.--The table of contents in section 1 of the
Dodd-Frank Wall Street Reform and Consumer Protection Act is amended by
inserting after the item relating to section 1037 the following:
``Sec. 1038. Review of loan applications.''.
SEC. 6. MORTGAGE DATA COLLECTION.
(a) In General.--Section 304(b)(4) of the Home Mortgage Disclosure
Act of 1975 (12 U.S.C. 2803(b)(4)) is amended by striking ``census
tract, income level, racial characteristics, age, and gender'' and
inserting ``the applicant or borrower's zip code, census tract, income
level, race, color, religion, national origin, sex, marital status,
sexual orientation, gender identity, and age''.
(b) Protection of Privacy Interests.--Section 304(h)(3)(A) of the
Home Mortgage Disclosure Act of 1975 (12 U.S.C. 2803(h)(3)(A)) is
amended--
(1) in clause (i), by striking ``and'' at the end;
(2) by redesignating clause (ii) as clause (iii); and
(3) by inserting after clause (i) the following:
``(ii) zip code, census tract, and any other
category of data described in subsection
(b)(4), as the Bureau determines to be
necessary to satisfy the purpose described in
paragraph (1)(E), and in a manner consistent
with that purpose; and''.
Amend the title so as to read:
A bill to establish an Office of Fair Lending Testing to
test for compliance with the Equal Credit Opportunity Act, to
strengthen the Equal Credit Opportunity Act, to ensure that
persons injured by discriminatory practices, including
organizations that have diverted resources to address
discrimination and whose mission has been frustrated by illegal
acts, can seek relief under such Act and to provide for
criminal penalties for violating such Act, and for other
purposes.
Purpose and Summary
On January 4, 2021, Representative Green introduced H.R.
166, the ``Fair Lending for All Act'', which would clarify that
the Equal Credit Opportunity Act (ECOA) prohibits credit
discrimination on the basis of sexual orientation and gender
identity, and further prohibits discrimination on the basis of
zip code and census tract as well. The bill also expands the
disaggregation of data collected under the Home Mortgage
Disclosure Act (HMDA) to account for zip code, census tract,
income level, race, color, religion, national origin, sex,
marital status, sexual orientation, gender identity, and age.
Additionally, the bill would create the Office of Fair Lending
Testing in the Consumer Financial Protection Bureau (CFPB) that
would be charged with testing creditors' compliance with ECOA
through the use of individuals who pose as prospective
borrowers for the purpose of gathering information. The bill
would also create criminal penalties under federal law for
knowing and willful discrimination by lenders in any credit
decision.
Background and Need for Legislation
Over the years, the consumer financial marketplace has
shown repeated patterns of discriminatory lending practices,
leading Congress to pass a number of laws, including ECOA,
HMDA, and the Community Reinvestment Act. However,
discriminatory lending practices persist. For example, the
Center for Investigative Reporting's Reveal project reviewed 31
million HMDA records and found modern day redlining in 61 metro
areas. Redlining is a practice by which banks discriminated
against prospective customers based primarily on where they
lived, or their racial or ethnic background, rather than
creditworthiness. The Reveal report found that when compared to
White borrowers, lenders denied African American borrowers at
significantly higher rates in 48 cities, Latinos in 25 cities,
Asian Americans in 9 cities, and Native Americans in 3 cities.
Moreover, fair lending enforcement declined significantly
during the Trump Administration. Between 2014 and 2016, the
CFPB and federal banking regulators cited, on average, 243
financial institutions for ECOA violations per year. Between
2017 and 2020, ECOA citations fell by almost half to 133
institutions cited, on average, for violations per year.
Discriminatory trends in the consumer financial marketplace
also affect borrowers based on their sexual orientation and
gender identity. For example, a recent study examining mortgage
data found, ``a consistent pattern of higher costs both in
closing fees and interest rates for same-sex borrowers.''
Some have tried to argue discrimination based on sexual
orientation and gender identity is not protected under ECOA.
After the House passed the Equality Act earlier this year,
which clarifies that ECOA prohibits discrimination based on
sex, sexual orientation, or gender identity, the CFPB issued an
interpretative rule confirming that discrimination based on
sexual orientation and gender identity are indeed prohibited by
ECOA. H.R. 166 would codify this recent CFPB action, while
expanding the criteria to include discrimination based on zip
code and census tract.
One potential tool to help root out discriminatory
practices is fair lending testing. For example, Newsday's Long
Island Divided series, an exhaustive, three-year investigation
into racial discrimination in home buying on Long Island,
deployed actors to conduct fair lending testing, which involved
the use of hidden cameras to record meetings with real estate
agents. The investigation showed the disparate treatment of
homebuyers of color and prompted a year-long investigation by
the New York State Senate, which resulted in a report that led
to a fair housing legislative package. In 40% of tests, agents
engaged in potentially unequal, disparate treatment of
homebuyers of color as compared to White homebuyers, and agents
at ten of the twelve real estate firms that were tested
demonstrated evidence of discriminatory behavior, such as
steering non-White home shoppers to certain neighborhoods or
requiring homebuyers of color to have prequalification letters
from a mortgage lender before allowing them to view houses.
Building on these successful fair lending tests, H.R. 166 would
require CFPB to establish an Office of Fair Lending Testing to
regularly utilize these kinds of tests to identify and combat
additional discriminatory practices in the marketplace.
Section-by-Section Analysis
Section 1: Short title
This section establishes the short title as
the ``Fair Lending for All Act''.
Section 2: Office of Fair Lending Testing
This section establishes in the Consumer
Financial Protection Bureau an Office of Fair Lending
Testing and outlines the Director of the Office will be
appointed to a 5-year term, will report to the CFPB
Director, and will be a civil service position. The
Office will consult with the Department of Housing and
Urban Development to conduct testing of compliance with
the Equal Credit Opportunity Act and refer violations
to the Attorney General. CFPB reporting to Congress
will include analysis of this testing.
Section 3: Prohibition on Credit Discrimination
This section amends the Equal Credit
Opportunity Act to make it unlawful for any creditor to
discriminate with respect to credit transactions on the
basis of race, color, religion, national origin, sex
(including sexual orientation and gender identity),
marital status, or age; on the basis of the person's
zip code, or census tract; because all or part of the
person's income derives from any public assistance
program; or because the person has in good faith
exercised any right under the Consumer Credit
Protection Act.
Section 4: Criminal penalties for violations of the Equal Credit
Opportunity Act
This section amends the Equal Credit
Opportunity Act by providing criminal penalties for
individual violations and a pattern or practice of
violations.
Section 5: Review of loan applications
This section amends the Consumer Financial
Protection Act of 2010 to require CFPB to review loan
applications and the process of taking loan
applications being used by covered persons to ensure
such applications and processes do not violate the
Equal Credit Opportunity Act or any other Federal
consumer financial law. If there is a violation, CFPB
will prohibit the application process and take such
enforcement action deemed appropriate.
Section 6: Mortgage data collection
This section amends the Home Mortgage
Disclosure Act by striking ``census tract, income
level, racial characteristics, age, and gender'' and
inserting ``the applicant or borrower's zip code,
census tract, income level, race, color, religion,
national origin, sex, marital status, sexual
orientation, gender identity, and age''.
Hearings
For the purposes of section 3(c)(6) of House Rule XIII, the
Committee on Financial Services' Subcommittee on Oversight &
Investigations held a hearing to consider H.R. 166 entitled,
``How Invidious Discrimination Works and Hurts: An Examination
of Lending Discrimination and Its Long-term Economic Impacts on
Borrowers of Color'' on February 24, 2021, and a Full Committee
hearing entitled ``Justice for All: Achieving Racial Equity
Through Fair Access to Housing and Financial Services,'' on
March 10, 2021.
Committee Consideration
The Committee on Financial Services met in open session on
May 12, 2001 and ordered H.R. 166 to be reported favorably to
the House with an amendment in the nature of a substitute by a
vote of 28 yeas and 24 nays, a quorum being present.
Committee Votes and Roll Call Votes
In compliance with clause 3(b) of rule XIII of the Rules of
the House of Representatives, the Committee advises that the
following roll call votes occurred during the Committee's
consideration of H.R. 166: Ordered reported to the House, as
amended, with a favorable recommendation by a recorded vote of
28 yeas and 24 nays.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Statement of Oversight Findings and Recommendations of the Committee
In compliance with clause 3(c)(1) of rule XIII and clause
2(b)(1) of rule X of the Rules of the House of Representatives,
the Committee's oversight findings and recommendations are
reflected in the descriptive portions of this report.
Statement of Performance Goals and Objectives
Pursuant to clause (3)(c) of rule XIII of the Rules of the
House of Representatives, the goals of H.R. 166 are to clarify,
expand, and enhance existing anti-discrimination laws affecting
the lending industry.
New Budget Authority and CBO Cost Estimate
Pursuant to clause 3(c)(2) of rule XIII of the Rules of the
House of Representatives and section 308(a) of the
Congressional Budget Act of 1974, and pursuant to clause
3(c)(3) of rule XIII of the Rules of the House of
Representatives and section 402 of the Congressional Budget Act
of 1974, the Committee has received the following estimate for
H.R. 166 from the Director of the Congressional Budget Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, February 22, 2022.
Hon. Maxine Waters,
Chairwoman, Committee on Financial Services,
House of Representatives, Washington, DC.
Dear Madam Chairwoman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 166, the Fair
Lending for All Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is David Hughes.
Sincerely,
Phillip L. Swagel,
Director.
Enclosure.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
The bill would
Establish the Office of Fair Lending Testing
within the Consumer Financial Protection Bureau (CFPB)
to assess creditor compliance with the Equal Credit
Opportunity Act (ECOA)
Require the CFPB to issue rules to expand
protections for borrowers in credit transactions
Establish new criminal penalties for
violating the ECOA
Require depository institutions to report
additional information about mortgage loans to the CFPB
Impose a private-sector mandate by
prohibiting discrimination in credit transactions on
the basis of an applicant's zip code or census tract
Estimated budgetary effects would mainly stem from
Increases in direct spending to operate the
Office of Fair Lending Testing and to conduct
rulemakings
Increases in spending subject to
appropriation for enforcement and interagency
consultation by the Departments of Justice and Housing
and Urban Development
Bill Summary: H.R. 166 would establish the Office of Fair
Lending Testing within the Consumer Financial Protection Bureau
(CFPB) to investigate and assess creditors' compliance with the
Equal Credit Opportunity Act (ECOA). The bill also would
broaden ECOA protections by prohibiting creditors from
discriminating on the basis of a borrower's zip code, census
tract, or other demographic characteristics. Violations
discovered during those investigations would be referred to the
Department of Justice (DOJ) for enforcement, and violators
would face criminal penalties. The CFPB and DOJ would be
required to report annually to the Congress on investigation
results and any resulting criminal prosecutions.
Under current law, depository institutions must disclose to
the CFPB annually the number and dollar amount of mortgages
originated or purchased in the prior fiscal year. H.R. 166
would require those institutions to itemize that mortgage
information based on several borrower characteristics,
including zip code, religion, and marital status. The bill
would require the CFPB to protect the private information of
applicants and mortgagors that those institutions disclose.
Estimated Federal Cost: The estimated budgetary effect of
H.R. 166 is shown in Table 1. The costs of the legislation fall
within budget functions 370 (commerce and housing credit), 600
(income security), and 750 (administration of justice).
TABLE 1.--ESTIMATED BUDGETARY EFFECTS OF H.R. 166
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, millions of dollars--
-----------------------------------------------------------------------------------------------------
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2022-2026 2022-2031
--------------------------------------------------------------------------------------------------------------------------------------------------------
Increases in Direct Spending
Estimated Budget Authority........................ 4 4 2 2 2 2 3 3 3 3 14 28
Estimated Outlays................................. 4 4 2 2 2 2 3 3 3 3 14 28
Decreases in Revenues
Estimated Revenues................................ * * * * * * * * * * * *
Net Increase in the Deficit From Changes in Direct Spending and Revenues
Effect on the Deficit............................. 4 4 2 2 2 2 3 3 3 3 14 28
Increases in Spending Subject to Appropriation
Estimated Authorization........................... * 1 1 1 1 n.e. n.e. n.e. n.e. n.e. 4 n.e.
Estimated Outlays................................. * 1 1 1 1 n.e. n.e. n.e. n.e. n.e. 4 n.e.
--------------------------------------------------------------------------------------------------------------------------------------------------------
n.e. = not estimated; * = between -$500,000 and $500,000.
Basis of estimate: For this estimate, CBO assumes that H.R.
166 will be enacted in 2022 and that spending will follow
historical patterns for similar programs.
Direct spending: CBO estimates that enacting H.R. 166 would
increase net direct spending by $28 million over the 2022-2031
period.
Consumer Financial Protection Bureau. Using information
from the CFPB, CBO estimates that the bureau would spend $28
million over the 2022-2031 period to fulfill the bill's
requirements. That amount would support about 36 additional
employees at a cost of $230,000 each over varying time periods.
The bureau has permanent authority, not subject to annual
appropriation, to spend amounts transferred from the Federal
Reserve.
Specifically, CBO estimates that the CFPB would spend $25
million over the 2022-2031 period for staff and contractors to
establish and operate the Office of Fair Lending Testing, to
complete rulemakings, and to fulfill additional reporting
requirements. The bureau would spend $2 million over the same
period to contract with external testers to investigate
discrimination by creditors, and roughly $500,000 to upgrade
its information technology systems to process additional data
from depository institutions.
Federal Financial Institutions Examination Council. CBO
expects that depository institutions would make greater use of
a geocoding system that the Federal Financial Institutions
Examination Council (FFIEC) provides to help them meet
reporting requirements. CBO estimates that the FFIEC would
spend an additional $100,000 each year, reflecting an increase
in system use under H.R. 166. That amount would be split evenly
among the five agencies that fund it: the CFPB, Federal Deposit
Insurance Corporation (FDIC), Federal Reserve, National Credit
Union Administration (NCUA), and the Office of the Comptroller
of the Currency (OCC). The operating costs of the CFPB, FDIC,
NCUA, and OCC are classified as direct spending. The NCUA and
OCC collect fees from financial institutions to offset their
operating costs; those fees are treated as reductions in direct
spending. On net, CBO estimates that increased use of the FFIEC
geocoding system would increase direct spending by an
insignificant amount over the 2022-2031 period.
Revenues: Costs incurred by the Federal Reserve reduce
remittances to the Treasury, which are recorded in the budget
as revenues. CBO estimates that upgrades to the FFIEC's
geocoding system would increase costs to the Federal Reserve by
less than $500,000 and thus decrease revenues by the same
amount over the 2022-2031 period.
Because H.R. 166 would establish new criminal penalties for
violating the ECOA, the federal government could collect
additional fines under the bill. Criminal fines are recorded as
revenues, deposited in the Crime Victims Fund, and later spent
without further appropriation. CBO expects that any additional
revenues and associated direct spending would not be
significant because relatively few additional cases would be
pursued.
Spending subject to appropriation: Using information from
DOJ, CBO estimates that it would cost the department roughly $3
million over the 2022-2026 period for three attorneys to handle
the expanded ECOA caseload under H.R. 166. In addition, CBO
estimates that it would cost the Department of Housing and
Urban Development about $1 million over the 2022-2026 period to
consult with the CFPB's new Office of Fair Lending Testing. In
total, CBO estimates, implementing H.R. 166 would cost about $4
million over the 2022-2026; such spending would be subject to
the availability of appropriated funds.
Pay-as-you-go considerations: The Statutory Pay-As-You-Go
Act of 2010 establishes budget-reporting and enforcement
procedures for legislation affecting direct spending or
revenues. The net changes in outlays and revenues that are
subject to those pay-as-you-go procedures are shown above in
Table 1.
Increase in long-term deficits: CBO estimates that enacting
H.R. 166 would not increase on-budget deficits by more than $5
billion in any of the four consecutive 10-year periods
beginning in 2032.
Mandates: H.R. 166 would impose a private-sector mandate as
defined in the Unfunded Mandates Reform Act (UMRA) by
prohibiting discrimination in credit transactions on the basis
of an applicant's zip code or census tract. CBO estimates that
the cost of complying with the mandate would fall below the
threshold established in UMRA for private-sector mandates ($170
million in 2021, adjusted annually for inflation).
CBO has not reviewed a portion of section 3(a) for
intergovernmental and private-sector mandates. Section 4 of
UMRA excludes from the application of that act any legislative
provisions that would establish or enforce statutory rights
that prohibit discrimination on the basis of race, color,
religion, sex, national origin, age, handicap, or disability.
CBO has determined that a portion of section 3(a) falls within
that exclusion because it would prohibit discrimination in
credit transactions on the basis of sexual orientation or
gender identity.
H.R. 166 contains no intergovernmental mandates as defined
in UMRA.
Estimate prepared by: Federal Costs: David Hughes (Consumer
Financial Protection Bureau) Lindsay Wiley (Department of
Justice) Elizabeth Cove Delisle (Department of Housing and
Urban Development) Stephen Rabent (Federal Deposit Insurance
Corporation, National Credit Union Administration; Office of
the Comptroller of the Currency) Nathaniel Frentz (Federal
Reserve).
Mandates: Fiona Forrester.
Estimate reviewed by: Justin Humphrey, Chief, Finance,
Housing, and Education Cost Estimates Unit; Susan Willie,
Chief, Natural and Physical Resources Cost Estimates Unit;
Kathleen FitzGerald, Chief, Public and Private Mandates Unit;
H. Samuel Papenfuss, Deputy Director of Budget Analysis;
Theresa Gullo, Director of Budget Analysis.
Committee Cost Estimate
Clause 3(d)(1) of rule XIII of the Rules of the House of
Representatives requires an estimate and a comparison of the
costs that would be incurred in carrying out H.R. 166. However,
clause 3(d)(2)(B) of that rule provides that this requirement
does not apply when the committee has included in its report a
timely submitted cost estimate of the bill prepared by the
Director of the Congressional Budget Office under section 402
of the Congressional Budget Act.
Unfunded Mandate Statement
Pursuant to Section 423 of the Congressional Budget and
Impoundment Control Act (as amended by Section 101(a)(2) of the
Unfunded Mandates Reform Act, Pub. L. 104-4), the Committee
adopts as its own the estimate of federal mandates regarding
H.R. 166, as amended, prepared by the Director of the
Congressional Budget Office.
Advisory Committee
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
Application of Law to the Legislative Branch
Pursuant to section 102(b)(3) of the Congressional
Accountability Act, Pub. L. No. 104-1, H.R. 166, as amended,
does not apply to terms and conditions of employment or to
access to public services or accommodations within the
legislative branch.
Earmark Statement
In accordance with clause 9 of rule XXI of the Rules of the
House of Representatives, H.R. 166 does not contain any
congressional earmarks, limited tax benefits, or limited tariff
benefits as described in clauses 9(e), 9(f), and 9(g) of rule
XXI.
Duplication of Federal Programs
Pursuant to clause 3(c)(5) of rule XIII of the Rules of the
House of Representatives, the Committee states that no
provision of H.R. 166 establishes or reauthorizes a program of
the Federal Government known to be duplicative of another
federal program, a program that was included in any report from
the Government Accountability Office to Congress pursuant to
section 21 of Public Law 111-139, or a program related to a
program identified in the most recent Catalog of Federal
Domestic Assistance.
Changes to Existing Law
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, H.R. 166, as reported, are shown as follows:
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italics, and existing law in which no
change is proposed is shown in roman):
EQUAL CREDIT OPPORTUNITY ACT
TITLE VII--EQUAL CREDIT OPPORTUNITY
Sec.
* * * * * * *
706A. Criminal penalties.
* * * * * * *
Sec. 701. Prohibited discrimination; reasons for adverse action
[(a) It shall be unlawful for any creditor to discriminate
against any applicant, with respect to any aspect of a credit
transaction--
[(1) on the basis of race, color, religion, national
origin, sex or marital status, or age (provided the
applicant has the capacity to contract);
[(2) because all or part of the applicant's income
derives from any public assistance program; or
[(3) because the applicant has in good faith
exercised any right under the Consumer Credit
Protection Act.]
(a) It shall be unlawful to discriminate against any person,
with respect to any aspect of a credit transaction--
(1) on the basis of race, color, religion, national
origin, sex (including sexual orientation and gender
identity), marital status, or age (provided the
applicant has the capacity to contract);
(2) on the basis of the person's zip code, or census
tract;
(3) because all or part of the person's income
derives from any public assistance program; or
(4) because the person has in good faith exercised
any right under the Consumer Credit Protection Act.
(b) It shall not constitute discrimination for purposes of
this title for a creditor--
(1) 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;
(2) to make an inquiry of the [applicant's] person's
age or of whether the [applicant's] person'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 as provided in regulations of the Board;
(3) to use any empirically derived credit system
which considers age if such system is demonstrably and
statistically sound in accordance with regulations of
the Bureau, except that in the operation of such system
the age of an elderly [applicant] person may not be
assigned a negative factor or value;
(4) to make an inquiry or to consider the age of an
elderly [applicant] person when the age of such
[applicant] person is to be used by the creditor in the
extension of credit in favor of such [applicant]
person; or
(5) to make an inquiry under section 704B, in
accordance with the requirements of that section.
(c) It is not a violation of this section for a creditor to
refuse to extend credit offered pursuant to--
(1) any credit assistance program expressly
authorized by law for an economically disadvantaged
class of persons;
(2) any credit assistance program administered by a
nonprofit organization for its members or an
economically disadvantaged class of persons; or
(3) any special purpose credit program offered by a
profit-making organization to meet special social needs
which meets standards prescribed in regulations by the
Board;
if such refusal is required by or made pursuant to such
program.
(d)(1) Within thirty days (or such longer reasonable time as
specified in regulations of the Bureau for any class of credit
transaction) after receipt of a completed application for
credit, a creditor shall notify the applicant of its action on
the application.
(2) 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--
(A) providing statements of reasons in writing as a
matter of course to applicants against whom adverse
action is taken; or
(B) giving written notification of adverse action
which discloses (i) the applicant's right to a
statement of reasons within thirty days after receipt
by the creditor of a request made within sixty days
after such notification, and (ii) 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.
(3) A statement of reasons meets the requirements of this
section only if it contains the specific reasons for the
adverse action taken.
(4) 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.
(5) The requirements of paragraphs (2), (3), or (4) may be
satisfied by verbal statements or notifications in the case of
any creditor who did not act on more than one hundred and fifty
applications during the calendar year preceding the calendar
year in which the adverse action is taken, as determined under
regulations of the Board.
(6) 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.
(e) Copies Furnished to Applicants.--
(1) 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 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.
(2) Waiver.--The applicant may waive the 3 day
requirement provided for in paragraph (1), except where
otherwise required in law.
(3) 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.
(4) Free copy.--Notwithstanding paragraph (3), the
creditor shall provide a copy of each written appraisal
or valuation at no additional cost to the applicant.
(5) 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.
(6) 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.
Sec. 702. Definitions
(a) The definitions and rules of construction set forth in
this section are applicable for the purposes of this title.
(b) The term ``applicant'' means any person who applies to a
creditor directly for an extension, renewal, or continuation of
credit, or applies to a creditor indirectly by use of an
existing credit plan for an amount exceeding a previously
established credit limit.
(c) The term ``Bureau'' means the Bureau of Consumer
Financial Protection.
(d) The term ``credit'' means the right granted by a creditor
to a debtor to defer payment of debt or to incur debts and
defer its payment or to purchase property or services and defer
payment therefor.
(e) The term ``creditor'' means any person who regularly
extends, renews, or continues credit; any person who regularly
arranges for the extension, renewal, or continuation of credit;
or any assignee of an original creditor who participates in the
decision to extend, renew, or continue credit.
(f) The term ``person'' means a natural person, a
corporation, government or governmental subdivision or agency,
trust, estate, partnership, cooperative, or association.
(g) The term ``aggrieved person'' includes any person who--
(1) claims to have been injured by a discriminatory
credit practice; or
(2) believes that such person will be injured by a
discriminatory credit practice.
[(g)] (h) Any reference to any requirement imposed under this
title or any provision thereof includes reference to the
regulations of the Bureau under this title or the provision
thereof in question.
* * * * * * *
SEC. 704A. INCENTIVES FOR SELF-TESTING AND SELF-CORRECTION.
(a) Privileged Information.--
(1) Conditions for privilege.--A report or result of
a self-test (as that term is defined by regulations of
the Board) shall be considered to be privileged under
paragraph (2) if a creditor--
(A) conducts, or authorizes an independent
third party to conduct, a self-test of any
aspect of a credit transaction by a creditor,
in order to determine the level or
effectiveness of compliance with this title by
the creditor; and
(B) has identified any possible violation of
this title by the creditor and has taken, or is
taking, appropriate corrective action to
address any such possible violation.
(2) Privileged self-test.--If a creditor meets the
conditions specified in subparagraphs (A) and (B) of
paragraph (1) with respect to a self-test described in
that paragraph, any report or results of that self-
test--
(A) shall be privileged; and
(B) may not be obtained or used by any
applicant, department, or agency in any--
(i) proceeding or civil action in
which one or more violations of this
title are alleged; or
(ii) examination or investigation
relating to compliance with this title.
(b) Results of Self-Testing.--
(1) In general.--No provision of this section may be
construed to prevent an [applicant] aggrieved person,
department, or agency from obtaining or using a report
or results of any self-test in any proceeding or civil
action in which a violation of this title is alleged,
or in any examination or investigation of compliance
with this title if--
(A) the creditor or any person with lawful
access to the report or results--
(i) voluntarily releases or discloses
all, or any part of, the report or
results to the [applicant] aggrieved
person, department, or agency, or to
the general public; or
(ii) refers to or describes the
report or results as a defense to
charges of violations of this title
against the creditor to whom the self-
test relates; or
(B) the report or results are sought in
conjunction with an adjudication or admission
of a violation of this title for the sole
purpose of determining an appropriate penalty
or remedy.
(2) Disclosure for determination of penalty or
remedy.--Any report or results of a self-test that are
disclosed for the purpose specified in paragraph
(1)(B)--
(A) shall be used only for the particular
proceeding in which the adjudication or
admission referred to in paragraph (1)(B) is
made; and
(B) may not be used in any other action or
proceeding.
(c) Adjudication.--An [applicant] aggrieved person,
department, or agency that challenges a privilege asserted
under this section may seek a determination of the existence
and application of that privilege in--
(1) a court of competent jurisdiction; or
(2) an administrative law proceeding with appropriate
jurisdiction.
* * * * * * *
Sec. 705. Relation to State laws
(a) A request for the signature of both parties to a marriage
for the purpose of creating a valid lien, passing clear title,
waiving inchoate rights to property, or assigning earnings,
shall not constitute discrimination under this title: Provided,
however, That this provision shall not be construed to permit
[a creditor to take] taking sex or marital status into account
in connection with the evaluation of creditworthiness of any
[applicant] person.
(b) Consideration or application of State property laws
directly or indirectly affecting creditworthiness shall not
constitute discrimination for purposes of this title.
(c) Any provision of State law which prohibits the separate
extension of consumer credit to each party to a marriage shall
not apply in any case where each party to a marriage
voluntarily applies for separate credit from the same creditor:
Provided, That in any case where such a State law is so
preempted, each party to the marriage shall be solely
responsible for the debt so contracted.
(d) When each party to a marriage separately and voluntarily
applies for and obtains separate credit accounts with the same
creditor, those accounts shall not be aggregated or otherwise
combined for purposes of determining permissible finance
charges or permissible loan ceilings under the laws of any
State or of the United States.
(e) Where the same act or omission constitutes a violation of
this title and of applicable State law, a person aggrieved by
such conduct may bring a legal action to recover monetary
damages either under this title or under such State law, but
not both. This election of remedies shall not apply to court
actions in which the relief sought does not include monetary
damages or to administrative actions.
(f) This title does not annul, alter, or affect, or exempt
any person subject to the provisions of this title from
complying with, the laws of any State with respect to credit
discrimination, except to the extent that those laws are
inconsistent with any provision of this title, and then only to
the extent of the inconsistency. The Bureau is authorized to
determine whether such inconsistencies exist. The Bureau may
not determine that any State law is inconsistent with any
provision of this title if the Bureau determines that such law
gives greater protection to [the applicant] persons.
(g) The Bureau shall by regulation exempt from the
requirements of sections 701 and 702 of this title any class of
credit transactions within any State if it determines that
under the law of that State that class of transactions is
subject to requirements substantially similar to those imposed
under this title or that such law gives greater protection to
[the applicant] persons, and that there is adequate provision
for enforcement. Failure to comply with any requirement of such
State law in any transaction so exempted shall constitute a
violation of this title for the purposes of section 706.
Sec. 706. Civil liability
(a) Any [creditor] person who fails to comply with any
requirement imposed under this title shall be liable to the
aggrieved applicant for any actual damages sustained by such
applicant acting either in an individual capacity or as a
member of a class.
(b) Any [creditor] person, other than a government or
governmental subdivision or agency, who fails to comply with
any requirement imposed under this title shall be liable to the
aggrieved applicant for punitive damages in an amount not
greater than $10,000, in addition to any actual damages
provided in subsection (a), except that in the case of a class
action the total recovery under this subsection shall not
exceed the lesser of $500,000 or 1 per centum of the net worth
of the [creditor] person. In determining the amount of such
damages in any action, the court shall consider, among other
relevant factors, the amount of any actual damages awarded, the
frequency and persistence of failures of compliance by the
[creditor] person, the resources of the [creditor] person, the
number of persons adversely affected, and the extent to which
the [creditor's] person's failure of compliance was
intentional.
(c) Upon application by an aggrieved applicant, the
appropriate United States district court or any other court of
competent jurisdiction may grant such equitable and declaratory
relief as is necessary to enforce the requirements imposed
under this title.
(d) In the case of any successful action under subsection
(a), (b), or (c), the costs of the action, together with a
reasonable attorney's fee as determined by the court, shall be
added to any damages awarded by the court under such
subsection.
(e) No provision of this title imposing liability shall apply
to any act done or omitted in good faith in conformity with any
official rule, regulation, or interpretation thereof by the
Bureau or in conformity with any interpretation or approval by
an official or employee of the Bureau of Consumer Financial
Protection duly authorized by the Bureau to issue such
interpretations or approvals under such procedures as the
Bureau may prescribe therefor, notwithstanding that after such
act or omission has occurred, such rule, regulation,
interpretation, or approval is amended, rescinded, or
determined by judicial or other authority to be invalid for any
reason.
(f) Any action under this section may be brought in the
appropriate United States district court without regard to the
amount in controversy, or in any other court of competent
jurisdiction. No such action shall be brought later than 5
years after the date of the occurrence of the violation, except
that--
(1) whenever any agency having responsibility for
administrative enforcement under section 704 commences
an enforcement proceeding within 5 years after the date
of the occurrence of the violation,
(2) whenever the Attorney General commences a civil
action under this section within 5 years after the date
of the occurrence of the violation,
then any [applicant] aggrieved person who has been a victim of
the discrimination which is the subject of such proceeding or
civil action may bring an action under this section not later
than one year after the commencement of that proceeding or
action.
(g) The agencies having responsibility for administrative
enforcement under section 704, if unable to obtain compliance
with section 701, are authorized to refer the matter to the
Attorney General with a recommendation that an appropriate
civil action be instituted. Each agency referred to in
paragraphs (1), (2), and (9) of section 704(a) shall refer the
matter to the Attorney General whenever the agency has reason
to believe that 1 or more [creditors] persons has engaged in a
pattern or practice of discouraging or denying applications for
credit in violation of section 701(a). Each such agency may
refer the matter to the Attorney General whenever the agency
has reason to believe that 1 or more [creditors] persons has
violated section 701(a).
(h) When a matter is referred to the Attorney General
pursuant to subsection (g), or whenever he has reason to
believe that one or more [creditors] persons are engaged in a
pattern or practice in violation of this title, the Attorney
General may bring a civil action in any appropriate United
States district court for such relief as may be appropriate,
including actual and punitive damages and injunctive relief.
(i) No person aggrieved by a violation of this title and by a
violation of section 805 of the Civil Rights Act of 1968 shall
recover under this title and section 812 of the Civil Rights
Act of 1968, if such violation is based on the same
transaction.
(j) Nothing in this title shall be construed to prohibit the
discovery of a [creditor's] person's credit granting standards
under appropriate discovery procedures in the court or agency
in which an action or proceeding is brought.
(k) Notice to HUD of Violations.--Whenever an agency referred
to in paragraph (1), (2), or (3) of section 704(a)--
(1) has reason to believe, as a result of receiving a
consumer complaint, conducting a consumer compliance
examination, or otherwise, that a violation of this
title has occurred;
(2) has reason to believe that the alleged violation
would be a violation of the Fair Housing Act; and
(3) does not refer the matter to the Attorney General
pursuant to subsection (g),
the agency shall notify the Secretary of Housing and Urban
Development of the violation, and shall notify the applicant
that the Secretary of Housing and Urban Development has been
notified of the alleged violation and that remedies for the
violation may be available under the Fair Housing Act.
Sec. 706A. Criminal penalties
(a) Individual Violations.--Any person who knowingly and
willfully violates this title shall be fined not more than
$50,000, or imprisoned not more than 1 year, or both.
(b) Pattern or Practice.--
(1) In general.--Any person who engages in a pattern
or practice of knowingly and willfully violating this
title shall be fined not more than $100,000 for each
violation of this title, or imprisoned not more than
twenty years, or both.
(2) Personal liability of executive officers and
directors of the board.--Any executive officer or
director of the board of an entity who knowingly and
willfully causes the entity to engage in a pattern or
practice of knowingly and willfully violating this
title (or who directs another agent, senior officer, or
director of the entity to commit such a violation or
engage in such acts that result in the director or
officer being personally unjustly enriched) shall be--
(A) fined in an amount not to exceed 100
percent of the compensation (including stock
options awarded as compensation) received by
such officer or director from the entity--
(i) during the time period in which
the violations occurred; or
(ii) in the one to three year time
period preceding the date on which the
violations were discovered; and
(B) imprisoned for not more than 5 years.
Sec. 707. Annual reports to Congress
Each year, the Bureau and the Attorney General shall,
respectively, make reports to the Congress concerning the
administration of their functions under this title, including
such recommendations as the Bureau and the Attorney General,
respectively, deem necessary or appropriate. In addition, each
report of the Bureau shall include its assessment of the extent
to which compliance with the requirements of this title is
being achieved, and a summary of the enforcement actions taken
by each of the agencies assigned administrative enforcement
responsibilities under section 704. In addition, each report of
the Bureau shall include an analysis of the testing carried out
pursuant to section 2 of the Fair Lending for All Act, and each
report of the Bureau and the Attorney General shall include a
summary of criminal enforcement actions taken under section
706A.
* * * * * * *
----------
DODD-FRANK WALL STREET REFORM AND CONSUMER PROTECTION ACT
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Dodd-Frank
Wall Street Reform and Consumer Protection Act''.
(b) Table of Contents.--The table of contents for this Act is
as follows:
Sec. 1. Short title; table of contents.
* * * * * * *
TITLE X--BUREAU OF CONSUMER FINANCIAL PROTECTION
* * * * * * *
Subtitle C--Specific Bureau Authorities
* * * * * * *
Sec. 1038. Review of loan applications.
* * * * * * *
TITLE X--BUREAU OF CONSUMER FINANCIAL PROTECTION
* * * * * * *
Subtitle C--Specific Bureau Authorities
* * * * * * *
SEC. 1038. REVIEW OF LOAN APPLICATIONS.
(a) In General.--The Bureau shall carry out reviews of loan
applications and the process of taking loan applications being
used by covered persons to ensure such applications and
processes do not violate the Equal Credit Opportunity Act or
any other Federal consumer financial law.
(b) Prohibition and Enforcement.--If the Bureau determines
under subsection (a) that any loan application or process of
taking a loan application violates the Equal Credit Opportunity
Act or any other Federal consumer financial law, the Bureau
shall--
(1) prohibit the covered person from using such
application or process; and
(2) take such enforcement or other actions with
respect to the covered person as the Bureau determines
appropriate.
* * * * * * *
----------
HOME MORTGAGE DISCLOSURE ACT OF 1975
TITLE III--HOME MORTGAGE DISCLOSURE
* * * * * * *
maintenance of records and public disclosure
Sec. 304. (a)(1) Each depository institution which has a home
office or branch office located within a primary metropolitan
statistical area, metropolitan statistical area, or
consolidated metropolitan statistical area that is not
comprised of designated primary metropolitan statistical areas,
as defined by the Department of Commerce shall compile and make
available, in accordance with regulations of the Board, to the
public for inspection and copying at the home office, and at
least one branch office within each primary metropolitan
statistical area, metropolitan statistical area, or
consolidated metropolitan statistical area that is not
comprised of designated primary metropolitan statistical areas
in which the depository institution has an office the number
and total dollar amount of mortgage loans which were (A)
originated (or for which the institution received completed
applications), or (B) purchased by that institution during each
fiscal year (beginning with the last full fiscal year of that
institution which immediately preceded the effective date of
this title).
(2) The information required to be maintained and made
available under paragraph (1) shall also be itemized in order
to clearly and conspicuously disclose the following:
(A) The number and dollar amount for each item
referred to in paragraph (1), by census tracts for
mortgage loans secured by property located within any
county with a population of more than 30,000, within
that primary metropolitan statistical area,
metropolitan statistical area, or consolidated
metropolitan statistical area that is not comprised of
designated primary metropolitan statistical areas,
otherwise, by county, for mortgage loans secured by
property located within any other county within that
standard metropolitan statistical area.
(B) The number and dollar amount for each item
referred to in paragraph (1) for all such mortgage
loans which are secured by property located outside
that primary metropolitan statistical area,
metropolitan statistical area, or consolidated
metropolitan statistical area that is not comprised of
designated primary metropolitan statistical areas.
For the purpose of this paragraph, a depository institution
which maintains offices in more than one primary metropolitan
statistical area, metropolitan statistical area, or
consolidated metropolitan statistical area that is not
comprised of designated primary metropolitan statistical areas
shall be required to make the information required by this
paragraph available at any such office only to the extent that
such information relates to mortgage loans which were
originated or purchased (or for which completed applications
were received) by an office of that depository institution
located in the primary metropolitan statistical area,
metropolitan statistical area, or consolidated metropolitan
statistical area that is not comprised of designated primary
metropolitan statistical areas in which the office making such
information available is located. For purposes of this
paragraph, other lending institutions shall be deemed to have a
home office or branch office within a primary metropolitan
statistical area, metropolitan statistical area, or
consolidated metropolitan statistical area that is not
comprised of designated primary metropolitan statistical areas
if such institutions have originated or purchased or received
completed applications for at least 5 mortgage loans in such
area in the preceding calendar year.
(b) Any item of information relating to mortgage loans
required to be maintained under subsection (a) shall be further
itemized in order to disclose for each such item--
(1) the number and dollar amount of mortgage loans
which are insured under title II of the National
Housing Act or under title V of the Housing Act of 1949
or which are guaranteed under chapter 37 of title 38,
United States Code;
(2) the number and dollar amount of mortgage loans
made to mortgagors who did not, at the time of
execution of the mortgage, intend to reside in the
property securing the mortgage loan;
(3) the number and dollar amount of home improvement
loans;
(4) the number and dollar amount of mortgage loans
and completed applications involving mortgagors or
mortgage applicants grouped according to [census tract,
income level, racial characteristics, age, and gender]
the applicant or borrower's zip code, census tract,
income level, race, color, religion, national origin,
sex, marital status, sexual orientation, gender
identity, and age;
(5) the number and dollar amount of mortgage loans
grouped according to measurements of--
(A) the total points and fees payable at
origination in connection with the mortgage as
determined by the Bureau, taking into account
15 U.S.C. 1602(aa)(4);
(B) the difference between the annual
percentage rate associated with the loan and a
benchmark rate or rates for all loans;
(C) the term in months of any prepayment
penalty or other fee or charge payable on
repayment of some portion of principal or the
entire principal in advance of scheduled
payments; and
(D) such other information as the Bureau may
require; and
(6) the number and dollar amount of mortgage loans
and completed applications grouped according to
measurements of--
(A) the value of the real property pledged or
proposed to be pledged as collateral;
(B) the actual or proposed term in months of
any introductory period after which the rate of
interest may change;
(C) the presence of contractual terms or
proposed contractual terms that would allow the
mortgagor or applicant to make payments other
than fully amortizing payments during any
portion of the loan term;
(D) the actual or proposed term in months of
the mortgage loan;
(E) the channel through which application was
made, including retail, broker, and other
relevant categories;
(F) as the Bureau may determine to be
appropriate, a unique identifier that
identifies the loan originator as set forth in
section 1503 of the S.A.F.E. Mortgage Licensing
Act of 2008;
(G) as the Bureau may determine to be
appropriate, a universal loan identifier;
(H) as the Bureau may determine to be
appropriate, the parcel number that corresponds
to the real property pledged or proposed to be
pledged as collateral;
(I) the credit score of mortgage applicants
and mortgagors, in such form as the Bureau may
prescribe; and
(J) such other information as the Bureau may
require.
(c) Any information required to be compiled and made
available under this section, other than loan application
register information under subsection (j), shall be maintained
and made available for a period of five years after the close
of the first year during which such information is required to
be maintained and made available.
(d) Notwithstanding the provisions of subsection (a)(1), data
required to be disclosed under this section for 1980 and
thereafter shall be disclosed for each calendar year. Any
depository institution which is required to make disclosures
under this section but which has been making disclosures on
some basis other than a calendar year basis shall make
available a separate disclosure statement containing data for
any period prior to calendar year 1980 which is not covered by
the last full year report prior to the 1980 calendar year
report.
(e) Subject to subsection (h), the Bureau shall prescribe a
standard format for the disclosures required under this
section.
(f) The Federal Financial Institutions Examination Council,
in consultation with the Secretary, shall implement a system to
facilitate access to data required to be disclosed under this
section. Such system shall include arrangements for a central
depository of data in each primary metropolitan statistical
area, metropolitan statistical area, or consolidated
metropolitan statistical area that is not comprised of
designated primary metropolitan statistical areas. Disclosure
statements shall be made available to the public for inspection
and copying at such central depository of data for all
depository institutions which are required to disclose
information under this section (or which are exempted pursuant
to section 306(b)) and which have a home office or branch
office within such primary metropolitan statistical area,
metropolitan statistical area, or consolidated metropolitan
statistical area that is not comprised of designated primary
metropolitan statistical areas.
(g) The requirements of subsections (a) and (b) shall not
apply with respect to mortgage loans that are--
(1) made (or for which completed applications are
received) by any mortgage banking subsidiary of a bank
holding company or savings and loan holding company or
by any savings and loan service corporation that
originates or purchases mortgage loans; and
(2) approved (or for which completed applications are
received) by the Secretary for insurance under title I
or II of the National Housing Act.
(h) Submission to Agencies.--
(1) In general.--The data required to be disclosed
under subsection (b) shall be submitted to the Bureau
or to the appropriate agency for the institution
reporting under this title, in accordance with rules
prescribed by the Bureau. Notwithstanding the
requirement of subsection (a)(2)(A) for disclosure by
census tract, the Bureau, in consultation with other
appropriate agencies described in paragraph (2) and,
after notice and comment, shall develop regulations
that--
(A) prescribe the format for such
disclosures, the method for submission of the
data to the appropriate agency, and the
procedures for disclosing the information to
the public;
(B) require the collection of data required
to be disclosed under subsection (b) with
respect to loans sold by each institution
reporting under this title;
(C) require disclosure of the class of the
purchaser of such loans;
(D) permit any reporting institution to
submit in writing to the Bureau or to the
appropriate agency such additional data or
explanations as it deems relevant to the
decision to originate or purchase mortgage
loans; and
(E) modify or require modification of
itemized information, for the purpose of
protecting the privacy interests of the
mortgage applicants or mortgagors, that is or
will be available to the public.
(2) Other appropriate agencies.--The appropriate
agencies described in this paragraph are--
(A) the appropriate Federal banking agencies,
as defined in section 3(q) of the Federal
Deposit Insurance Act (12 U.S.C. 1813(q)), with
respect to the entities that are subject to the
jurisdiction of each such agency, respectively;
(B) the Federal Deposit Insurance Corporation
for banks insured by the Federal Deposit
Insurance Corporation (other than members of
the Federal Reserve System), mutual savings
banks, insured State branches of foreign banks,
and any other depository institution described
in section 303(2)(A) which is not otherwise
referred to in this paragraph;
(C) the National Credit Union Administration
Board with respect to credit unions; and
(D) the Secretary of Housing and Urban
Development with respect to other lending
institutions not regulated by the agencies
referred to in subparagraph (A) or (B).
(3) Rules for modifications under paragraph (1).--
(A) Application.--A modification under
paragraph (1)(E) shall apply to information
concerning--
(i) credit score data described in
subsection (b)(6)(I), in a manner that
is consistent with the purpose
described in paragraph (1)(E); [and]
(ii) zip code, census tract, and any
other category of data described in
subsection (b)(4), as the Bureau
determines to be necessary to satisfy
the purpose described in paragraph
(1)(E), and in a manner consistent with
that purpose; and
[(ii)] (iii) age or any other
category of data described in paragraph
(5) or (6) of subsection (b), as the
Bureau determines to be necessary to
satisfy the purpose described in
paragraph (1)(E), and in a manner
consistent with that purpose.
(B) Standards.--The Bureau shall prescribe
standards for any modification under paragraph
(1)(E) to effectuate the purposes of this
title, in light of the privacy interests of
mortgage applicants or mortgagors. Where
necessary to protect the privacy interests of
mortgage applicants or mortgagors, the Bureau
shall provide for the disclosure of information
described in subparagraph (A) in aggregate or
other reasonably modified form, in order to
effectuate the purposes of this title.
(i) Exemptions.--
(1) Closed-end mortgage loans.--With respect to an
insured depository institution or insured credit union,
the requirements of paragraphs (5) and (6) of
subsection (b) shall not apply with respect to closed-
end mortgage loans if the insured depository
institution or insured credit union originated fewer
than 500 closed-end mortgage loans in each of the 2
preceding calendar years.
(2) Open-end lines of credit.--With respect to an
insured depository institution or insured credit union,
the requirements of paragraphs (5) and (6) of
subsection (b) shall not apply with respect to open-end
lines of credit if the insured depository institution
or insured credit union originated fewer than 500 open-
end lines of credit in each of the 2 preceding calendar
years.
(3) Required compliance.--Notwithstanding paragraphs
(1) and (2), an insured depository institution shall
comply with paragraphs (5) and (6) of subsection (b) if
the insured depository institution has received a
rating of ``needs to improve record of meeting
community credit needs'' during each of its 2 most
recent examinations or a rating of ``substantial
noncompliance in meeting community credit needs'' on
its most recent examination under section 807(b)(2) of
the Community Reinvestment Act of 1977 (12 U.S.C.
2906(b)(2)).
(3) Exemption from certain disclosure requirements.--
The requirements of subsections (b)(4), (b)(5), and
(b)(6) shall not apply with respect to any depository
institution described in section 303(3)(A) which has
total assets, as of the most recent full fiscal year of
such institution, of $30,000,000 or less.
(j) Loan Application Register Information.--
(1) In general.--In addition to the information
required to be disclosed under subsections (a) and (b),
any depository institution which is required to make
disclosures under this section shall make available to
the public, upon request, loan application register
information (as defined by the Bureau by regulation) in
the form required under regulations prescribed by the
Board.
(2) Format of disclosure.--
(A) Unedited format.--Subject to subparagraph
(B), the loan application register information
described in paragraph (1) may be disclosed by
a depository institution without editing or
compilation and in such formats as the Bureau
may require.
(B) Protection of applicant's privacy
interest.--The Bureau shall require, by
regulation, such deletions as the Bureau may
determine to be appropriate to protect--
(i) any privacy interest of any
applicant, including the deletion of
the applicant's name and identification
number, the date of the application,
and the date of any determination by
the institution with respect to such
application; and
(ii) a depository institution from
liability under any Federal or State
privacy law.
(C) Census tract format encouraged.--It is
the sense of the Congress that a depository
institution should provide loan register
information under this section in a format
based on the census tract in which the property
is located.
(3) Change of form not required.--A depository
institution meets the disclosure requirement of
paragraph (1) if the institution provides the
information required under such paragraph in such
formats as the Bureau may require
(4) Reasonable charge for information.--Any
depository institution which provides information under
this subsection may impose a reasonable fee for any
cost incurred in reproducing such information.
(5) Time of disclosure.--The disclosure of the loan
application register information described in paragraph
(1) for any year pursuant to a request under paragraph
(1) shall be made--
(A) in the case of a request made on or
before March 1 of the succeeding year, before
April 1 of the succeeding year; and
(B) in the case of a request made after March
1 of the succeeding year, before the end of the
30-day period beginning on the date the request
is made.
(6) Retention of information.--Notwithstanding
subsection (c), the loan application register
information described in paragraph (1) for any year
shall be maintained and made available, upon request,
for 3 years after the close of the 1st year during
which such information is required to be maintained and
made available.
(7) Minimizing compliance costs.--In prescribing
regulations under this subsection, the Bureau shall
make every effort to minimize the costs incurred by a
depository institution in complying with this
subsection and such regulations.
(k) Disclosure of Statements by Depository Institutions.--
(1) In general.--In accordance with procedures
established by the Bureau pursuant to this section, any
depository institution required to make disclosures
under this section--
(A) shall make a disclosure statement
available, upon request, to the public no later
than 3 business days after the institution
receives the statement from the Federal
Financial Institutions Examination Council; and
(B) may make such statement available on a
floppy disc which may be used with a personal
computer or in any other media which is not
prohibited under regulations prescribed by the
Board.
(2) Notice that data is subject to correction after
final review.--Any disclosure statement provided
pursuant to paragraph (1) shall be accompanied by a
clear and conspicuous notice that the statement is
subject to final review and revision, if necessary.
(3) Reasonable charge for information.--Any
depository institution which provides a disclosure
statement pursuant to paragraph (1) may impose a
reasonable fee for any cost incurred in providing or
reproducing such statement.
(l) Prompt Disclosures.--
(1) In general.--Any disclosure of information
pursuant to this section or section 310 shall be made
as promptly as possible.
(2) Maximum disclosure period.--
(A) 6- and 9-month maximum periods.--Except
as provided in subsections (j)(5) and (k)(1)
and regulations prescribed by the Bureau and
subject to subparagraph (B), any information
required to be disclosed for any year beginning
after December 31, 1992, under--
(i) this section shall be made
available to the public before
September 1 of the succeeding year; and
(ii) section 310 shall be made
available to the public before December
1 of the succeeding year.
(B) Shorter periods encouraged after 1994.--
With respect to disclosures of information
under this section or section 310 for any year
beginning after December 31, 1993, every effort
shall be made--
(i) to make information disclosed
under this section available to the
public before July 1 of the succeeding
year; and
(ii) to make information required to
be disclosed under section 310
available to the public before
September 1 of the succeeding year.
(3) Improved procedure.--The Federal Financial
Institutions Examination Council shall make such
changes in the system established pursuant to
subsection (f) as may be necessary to carry out the
requirements of this subsection.
(m) Opportunity To Reduce Compliance Burden.--
(1) In general.--
(A) Satisfaction of public availability
requirements.--A depository institution shall
be deemed to have satisfied the public
availability requirements of subsection (a) if
the institution compiles the information
required under that subsection at the home
office of the institution and provides notice
at the branch locations specified in subsection
(a) that such information is available from the
home office of the institution upon written
request.
(B) Provision of information upon request.--
Not later than 15 days after the receipt of a
written request for any information required to
be compiled under subsection (a), the home
office of the depository institution receiving
the request shall provide the information
pertinent to the location of the branch in
question to the person requesting the
information.
(2) Form of information.--In complying with paragraph
(1), a depository institution shall provide the person
requesting the information with a copy of the
information requested in such formats as the Bureau may
require.
(n) Timing of Certain Disclosures.--The data required to be
disclosed under subsection (b) shall be submitted to the Bureau
or to the appropriate agency for any institution reporting
under this title, in accordance with regulations prescribed by
the Bureau. Institutions shall not be required to report new
data under paragraph (5) or (6) of subsection (b) before the
first January 1 that occurs after the end of the 9-month period
beginning on the date on which regulations are issued by the
Bureau in final form with respect to such disclosures.
(o) Definitions.--In this section--
(1) the term ``insured credit union'' has the meaning
given the term in section 101 of the Federal Credit
Union Act (12 U.S.C. 1752); and
(2) the term ``insured depository institution'' has
the meaning given the term in section 3 of the Federal
Deposit Insurance Act (12 U.S.C. 1813).
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