[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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