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Title II — Taking the first steps to reverse the legacy of housing discrimination and government negligence

S. 787 · 116th Congress · Mar 13, 2019 · Lineage

II Taking the first steps to reverse the legacy of housing discrimination and government negligence

201. Down payment assistance program for communities formerly segregated by law

(a)
Findings— Congress finds the following:
(1)
For generations, buying a home has been the primary way working families build wealth.
(2)
A home is not only a place to live, but also an asset that may appreciate, help fund a new business, finance an education, or cover retirement expenses. A home provides stability and financial predictability, which are important foundations for prosperity and access to opportunity for a family.
(3)
For decades, the Federal Government subsidized homeownership—for White families. Until the 1960s, the Federal Government systematically denied African Americans and other marginalized groups the ability to obtain mortgage credit, buy homes, and build wealth for their families while subsidizing the American dream for White families.
(4)
The Federal Government, through the Home Owners’ Loan Corporation and the Federal Housing Administration, standardized and institutionalized discriminatory policies on the basis of race, national origin, and religion that reflected practices in the private sector and became a model for their widespread adoption across the housing industry.
(5)
Racist restrictive covenants and zoning ordinances also robbed families of color of the opportunity to live and build opportunity for their families in the community of their choice.
(6)
In the years before the 2008 financial crisis, lenders targeted borrowers of color with abusive loans while government regulators sat on their hands, further extracting wealth from these same communities.
(7)
The legacy of housing discrimination and regulatory negligence is a contributor to a large and growing gap in wealth and outcomes between Black and White families. The median income White family in the United States has almost 10 times the wealth of the median income Black family in the United States. The gap between the White homeownership rate and the Black homeownership rate is bigger today than it was when housing discrimination was legal. Seventy-five percent of formerly redlined communities are still low-income and 66 percent are still minority communities.
(8)
The purpose of this section is for the Federal Government to take the first step toward addressing the racial wealth gap that it contributed to creating by helping individuals or descendants of individuals who were harmed by housing discrimination or negligence by the Federal Government.
(b)
Definitions— In this section:
(1)
Eligible resident— The term eligible resident means a resident of a geographic area, as defined by the Secretary by regulation under subsection (g), who—
(A)
is a first-time homebuyer;
(B)
has an income that is less than 120 percent of the area median income; and
(C)
(i)
resided in that geographic area during the 4-year period preceding the date of enactment of this Act;
(ii)
resided in that geographic area for a period of 4 years before moving out of the geographic area subsequent to a foreclosure, short sale, or deed in lieu of foreclosure on a home that—
(I)
was the primary residence of the resident; and
(II)
was purchased or refinanced during the period beginning on January 1, 2001, and ending on December 30, 2008; or
(iii)
resided in that geographic area for a period of 4 years before moving out of the geographic area due to a major disaster declared by the President or a State, territorial, or Tribal government.
(2)
First-time homebuyer— The term first-time homebuyer means an individual (and if married, the spouse of the individual) who—
(A)
has had no ownership in a principal residence during the 3-year period ending on the date of purchase of the property; or
(B)
who surrendered an ownership interest in a principal residence during the 3-year period ending on the date of purchase of the property as part of a divorce proceeding.
(3)
Secretary— The term Secretary means the Secretary of Housing and Urban Development.
(c)
Establishment— There is established in the Office of Housing of the Department of Housing and Urban Development a fund, to be administered by the Secretary, that shall be used—
(1)
to provide grants to eligible residents to purchase homes;
(2)
for outreach to financial institutions in targeted areas and eligible residents, including for the administration of that outreach;
(3)
for counseling or financial education administered by counseling agencies approved by the Secretary in order to ensure sustainable homeownership;
(4)
to create and maintain the database described in subsection (g)(3); and
(5)
to maintain any records required to implement this section.
(d)
Grant amount— Eligible residents may receive a grant from the fund established under subsection (c) in an amount equal to—
(1)
not more than 3.5 percent of the appraised value of the property to be purchased; or
(2)
if the appraised value is more than the principal obligation amount limitation for mortgages insured under title II of the National Housing Act (12 U.S.C. 1707 et seq.), 3.5 percent of the maximum principal obligation limitation for the property to be purchased.
(e)
FHA loan— An eligible resident is not required to obtain a mortgage that is insured under title II of the National Housing Act (12 U.S.C. 1707 et seq.) as a condition of receiving a grant under this section.
(f)
Geographic area— An eligible resident is not required to purchase a home within the geographic area described in subsection (b)(1)(C) as a condition of receiving a grant under this section.
(g)
Regulations and database— Not later than 1 year after the date of enactment of this Act, the Secretary shall—
(1)
in consultation with interested parties, including housing counseling agencies approved by the Secretary and individuals or groups with expertise in fair housing, finalize regulations relating to the use of the fund established under subsection (c), including defining the geographic areas in which residents are eligible to receive grants through the fund, which shall include—
(A)
census tracts graded as “hazardous” or “definitely declining”in maps drawn by the Home Owners' Loan Corporation that are, as of the date of enactment of this Act, low-income communities;
(B)
census tracts that were designated for non-White citizens in jurisdictions that historically had racially segregated zoning codes and are, as of the date of enactment of this Act, low-income communities; and
(C)
census tracts that are racially or ethnically concentrated areas of poverty, which shall mean a census tract—
(i)
with a non-White population of 50 percent or more; and
(ii)
(I)
in which not less than 40 percent of families living in the census tract have incomes that are at or below the poverty line; or
(II)
in which the average tract poverty rate is 3 or more times the average tract poverty tract for the metropolitan or micropolitan area;
(2)
finalize regulations relating to the disbursement of funds under this section to ensure that eligible residents are able to receive funds before the closing date for their home, which may include creating a program that allows a lender to be reimbursed by the fund established under subsection (c) if the lender—
(A)
provides the eligible resident with funds for the closing; or
(B)
allows eligible residents to be preapproved to receive assistance under this section when arranging financing for their home;
(3)
create a publicly accessible database that allows individuals, real estate professionals, and lenders to determine whether a borrower is eligible for assistance under this section; and
(4)
establish methods to verify that an individual is an eligible resident.
(h)
Appropriations— Out of funds in the Treasury not otherwise appropriated, there is appropriated to the fund established under subsection (c) such sums as may be necessary for each of fiscal years 2020 through 2029 to provide grants under this section and to carry out consumer education efforts related to this section.
(i)
Inclusion of program in home buying information booklets— Section 5(b) of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2604(b)) is amended by inserting after paragraph (14) the following:

“(15) Information relating to the down payment assistance program established under section 201 of the American Housing and Economic Mobility Act of 2019.”

(j)
Inclusion of program as mortgage product— Section 203(f)(1) of the National Housing Act (12 U.S.C. 1709(f)(1)) is amended by inserting “, including the down payment assistance program established under section 201 of the American Housing and Economic Mobility Act of 2019,” after “mortgage products”.

202. Formula grant program for communities that have not recovered from the financial crisis

(a)
Establishment— The Secretary of Housing and Urban Development shall establish a formula grant program to provide funding to States to assist borrowers with negative equity in their primary residence through—
(1)
measures that provide funds to borrowers to—
(A)
pay down arrears on an otherwise affordable loan;
(B)
pay down arrears or principal on a loan in order to qualify for a loan modification that will allow the borrower to keep their home;
(C)
pay off the entire or pay down part of a second mortgage or home equity line of credit;
(D)
pay off a small-dollar mortgage;
(E)
pay delinquent taxes and tax liens;
(F)
pay off delinquent water or sewer bills and liens; and
(G)
pay for home repairs or maintenance or for modifications to bring the home into compliance with any applicable codes; and
(2)
programs to purchase or rehabilitate vacant land and foreclosed homes to enhance neighborhood property values.
(b)
Formula— The Secretary of Housing and Urban Development shall distribute amounts under this section based on the number of borrowers in the State with a primary residence with negative equity.
(c)
Authorization of appropriations— There is authorized to be appropriated to carry out this section $2,000,000,000 for fiscal year 2020.

203. Strengthening the Community Reinvestment Act of 1977

(a)
Short title— This section may be cited as the “Community Reinvestment Reform Act of 2019”.
(b)
Amendments to the Community Reinvestment Act of 1977— The Community Reinvestment Act of 1977 (12 U.S.C. 2901 et seq.) is amended—
(1)
by amending sections 802 and 803 (12 U.S.C. 2901, 2902) to read as follows:

“802. Findings and purpose

“(a) Findings—Congress finds that—

“(1) regulated financial institutions are required by law to demonstrate that they serve the convenience and needs of the communities in which they are chartered or do business, in particular low- and moderate-income communities;

“(2) the convenience and needs of communities include the need for credit services, deposit services, transaction services, other financial services, and community development loans and investments; and

“(3) regulated financial institutions have a continuing and affirmative obligation to meet the credit or other financial needs of the local communities in which they are chartered or do business.

“(b) Purpose—It is the purpose of this title to require each appropriate Federal financial supervisory agency to use its authority when examining regulated financial institutions to ensure that those institutions meet the credit or other financial needs of the local communities in which they are chartered or do business consistent with the safe and sound operation of those institutions.

“803. Definitions

“In this title:

“(1) Application for a deposit facility—The term application for a deposit facility means an application to the appropriate Federal financial supervisory agency otherwise required under Federal law or regulations thereunder for—

“(A) a charter for a national bank or Federal savings and loan association;

“(B) deposit insurance in connection with a newly chartered State bank, savings bank, savings and loan association, or similar institution;

“(C) the establishment of a domestic branch or other facility with the ability to accept deposits of a regulated financial institution;

“(D) the relocation of the home office or a branch office of a regulated financial institution;

“(E) the merger or consolidation with, the acquisition of the assets of, or the assumption of the liabilities of a regulated financial institution requiring approval under section 18(c) of the Federal Deposit Insurance Act (12 U.S.C. 1828(c)); or

“(F) the acquisition of shares in, or the assets of, a regulated financial institution requiring approval under section 3 of the Bank Holding Company Act of 1956 (12 U.S.C. 1842).

“(2) Appropriate Federal banking agency—The term appropriate Federal banking agency has the meaning given the term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).

“(3) Appropriate Federal financial supervisory agency—The term appropriate Federal financial supervisory agency means—

“(A) the appropriate Federal banking agency with respect to depository institutions and depository institution holding companies; and

“(B) the Bureau of Consumer Financial Protection with respect to any covered person supervised by the Bureau pursuant to section 1024 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (12 U.S.C. 5514).

“(4) Assessment area—The term assessment area means, with respect to a regulated financial institution, each community, including a State, metropolitan area, and urban or rural county, in which the institution—

“(A) maintains deposit-taking branches, automated teller machines, or retail offices;

“(B) is represented by an agent;

“(C) issues a significant number of loans or other products relative to the total number of loans or other products made by the institution;

“(D) has issued not less than 75 percent of the loans of the institution; or

“(E) has conducted not less than 75 percent of the business of the institution.

“(5) Community benefits plan—The term community benefits plan means a plan that provides measurable goals for future amounts of safe and sound loans, investments, services, and other financial products for low- and moderate-income communities and other distressed or underserved communities.

“(6) Community development—The term community development means—

“(A) affordable housing for low- or moderate-income individuals and avoidance of patterns of lending resulting in the loss of affordable housing units;

“(B) community development services, including counseling and successful mortgage or loan modifications of delinquent loans;

“(C) activities that promote integration;

“(D) activities that promote economic development by financing small businesses or farms that meet the size eligibility requirements of the development company or small business investment company programs under section 121.301 of title 13, Code of Federal Regulations, or any successor regulation, with an emphasis on small businesses that have gross annual revenues of not more than $1,000,000;

“(E) activities that revitalize or stabilize—

“(i) low- or moderate-income geographies;

“(ii) designated disaster areas;

“(iii) distressed or underserved nonmetropolitan middle-income geographies designated by the Federal Financial Institutions Examination Council, based on—

“(I) rates of poverty, unemployment, and population loss; or

“(II) population size, density, and dispersion, if those activities help to meet essential community needs, including the needs of low- and moderate-income individuals; or

“(iv) other distressed or underserved communities; or

“(F) activities that promote physical, environmental, and sensory accessibility in housing stock that is integrated into the community.

“(7) Depository institution; depository institution holding company—The terms depository institution and depository institution holding company have the meanings given those terms in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).

“(8) Entire community—The term entire community means all of the assessment areas of a regulated financial institution.

“(9) Enumerated consumer laws—The term enumerated consumer laws has the meaning given the term in section 1002 of the Consumer Financial Protection Act of 2010 (12 U.S.C. 5481).

“(10) Geography—The term geography means a census tract delineated by the Bureau of the Census in the most recent decennial census.

“(11) Insured depository institution—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).

“(12) Other distressed or underserved community—The term other distressed or underserved community means an area that, according to a periodic review and data analysis by the appropriate Federal financial supervisory agencies on an interagency basis through the Federal Financial Institutions Examination Council, is experiencing economic hardship or is underserved by financial institutions.

“(13) Regulated financial institution—The term regulated financial institution means—

“(A) an insured depository institution;

“(B) a depository institution holding company; and

“(C) a U.S. nonbank mortgage originator.

“(14) U.S. nonbank mortgage originator—The term U.S. nonbank mortgage originator means a covered person subject to section 1024 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (12 U.S.C. 5514) that offers or provides—

“(A) origination of loans secured by real estate for use by consumers primarily for personal, family, or household purposes; or

“(B) loan modification or foreclosure relief services in connection with a loan described in subparagraph (A).”

(2)
in section 804 (12 U.S.C. 2903)—
(A)
by redesignating subsections (c) and (d) as subsections (f) and (g), respectively;
(B)
by striking subsections (a) and (b) and inserting the following:

“(a) Depository institutions and bank holding companies—In connection with its examination of a regulated financial institution other than a U.S. nonbank mortgage originator, the appropriate Federal financial supervisory agency shall perform the following:

“(1) Assess the record of the institution in meeting the credit or other financial needs of its entire community, in particular low- and moderate-income people and communities, and other distressed or underserved communities, consistent with the safe and sound operation of the institution.

“(2) Assess the effectiveness of the following activities in meeting the credit or other financial needs of the assessment areas of the institution, consistent with the safe and sound operation of the institution:

“(A) Retail lending, including home, small business, consumer, and other lending and financial products, that responds to credit needs or other financial needs.

“(B) Community development lending and investments, which may include a consideration of—

“(i) the origination of loans and other efforts by the institution to assist existing low- and moderate-income residents to remain in affordable housing in their community; and

“(ii) the origination of loans by the institution that result in the construction, rehabilitation, or preservation of affordable housing units.

“(C) Retail financial services and community development services.

“(3) With respect to its evaluation of an application for a deposit facility by the institution—

“(A) consider the record described in paragraph (1), the overall rating of the institution under this section, and any improvement plans submitted pursuant to this section;

“(B) provide an opportunity for public comment for a period of not less than 60 days;

“(C) consider changes in the community reinvestment performance of the institution since the most recent rating under this section by the appropriate Federal financial supervisory agency; and

“(D) require—

“(i) a demonstration of public benefit, including a community benefits plan with measurable goals regarding increasing responsible lending and other financial products;

“(ii) that the institution consult with community-based organizations and other community stakeholders in developing the community benefits plan; and

“(iii) a public hearing for any institution that has a received a “need-to-improve” or “sufficient” grade in any individual assessment area during the most recent examination.

“(b) U.S. nonbank mortgage originator—In connection with its examination of a U.S. nonbank mortgage originator, the appropriate Federal financial supervisory agency shall perform the following:

“(1) Assess the record of the U.S. nonbank mortgage originator in meeting the credit or other financial needs of its entire community, in particular low-income and moderate-income people and communities and other distressed or underserved communities, consistent with the safe and sound operation of the U.S. nonbank mortgage originator.

“(2) Assess, as appropriate, the following activities in the assessment areas of the U.S. nonbank mortgage originator:

“(A) Retail lending, including home loans.

“(B) Community development services.

“(C) Community development lending and investments, which may include a consideration of—

“(i) the origination of loans and other efforts by the institution to assist existing low- and moderate-income residents to remain in affordable housing in their community;

“(ii) the origination of loans by the institution that result in the construction, rehabilitation or preservation of affordable housing units; and

“(iii) investments in or loans to community development financial institutions (as defined in section 103 of the Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 4702)), community development corporations (as defined in section 613 of the Community Economic Development Act of 1981 (42 U.S.C. 9802)), and other nonprofit organizations serving the housing and development needs of the community.

“(3) With respect to its evaluation of an application for a deposit facility by the U.S. nonbank mortgage originator—

“(A) consider the record described in paragraph (1), the overall rating of the U.S. nonbank mortgage originator under this section, and any improvement plans submitted pursuant to this section;

“(B) provide an opportunity for public comment for a period of not less than 60 days;

“(C) consider changes in the community reinvestment performance of the U.S. nonbank mortgage originator since the most recent rating under this section by the appropriate Federal financial supervisory agency; and

“(D) require—

“(i) a demonstration that granting the application for a deposit facility is in the public interest, which shall include a submission of a community benefits plan by the U.S. nonbank mortgage originator to the appropriate Federal financial supervisory agency;

“(ii) that the U.S. nonbank mortgage originator consult with community-based organizations and other community stakeholders in developing the community benefits plan; and

“(iii) a public hearing for any U.S. nonbank mortgage originator that has a received a “need-to-improve” or “sufficient” grade in any individual assessment area during the most recent examination.

“(c) Requirements

“(1) In general—In connection with its examination of a regulated financial institution under subsection (a) or (b), the appropriate Federal financial supervisory agency shall—

“(A) consider public comments received by the appropriate Federal financial supervisory agency regarding the record of the institution in meeting the credit or other financial needs of its entire community, including low- and moderate-income communities; and

“(B) require an improvement plan for an institution that receives a rating of “sufficient” or lower on the written evaluation of the institution, or such a rating in any individual assessment area, and require the improvement plan to result in the reasonable likelihood that the institution will obtain a rating of at least “satisfactory record of meeting community credit or other financial needs” in the relevant measure on the next examination.

“(2) Improvement plan

“(A) In general—A regulated financial institution that is required to submit an improvement plan required under paragraph (1)(B) shall submit the plan in writing to the appropriate Federal financial supervisory agency not later than 90 days after receiving notice that the regulated financial institution is required to submit the plan.

“(B) Public comment—Upon receipt of an improvement plan of a regulated financial institution required under paragraph (1)(B), the appropriate Federal financial supervisory agency shall—

“(i) make the plan available to the public for review and comment for a period of not less than 60 days; and

“(ii) require the regulated financial institution to revise, as appropriate, the improvement plan in response to the public comments received under the public review and comment period described in clause (i) and submit the plan to the appropriate Federal financial supervisory agency not later than 60 days after the end of that period.

“(3) Examination of certain regulated financial institutions—In the case of a regulated financial institution whose lending or other business is not clustered in geographical areas and is thinly dispersed across the country, the institution shall—

“(A) be evaluated under subsection (a) or (b), as applicable—

“(i) by considering the effectiveness of the institution in serving customers or borrowers, with a special emphasis on low- and moderate-income individuals across the country regardless of where the individuals reside; and

“(ii) based on objective thresholds developed by the appropriate Federal financial supervisory agencies to clarify when lending or other business is dispersed across the country and not clustered in distinct geographical areas, which may include low levels of lending or other financial products across States or other areas; and

“(B) meet the needs of other distressed or underserved communities.

“(d) Consideration—Remediation of consumers pursuant to an order by an court or administrative body or a settlement with a government agency or a private party shall not be considered in an assessment conducted under subsection (a)(2) or (b)(2).

“(e) Rule of construction—An evaluation of a bank holding company under this section shall incorporate evaluations of subsidiary regulated financial institutions made by the appropriate Federal financial supervisory agency of each subsidiary, if applicable.”

(C)
in subsection (f), as so redesignated—
(i)
by striking paragraph (2);
(ii)
by redesignating paragraph (3) as paragraph (2); and
(iii)
in paragraph (2), as so redesignated, by striking subparagraph (C); and
(D)
in subsection (g), as so redesignated, by striking “subsection (a)” and inserting “subsections (a) and (b)”;
(3)
in section 807 (12 U.S.C. 2906)—
(A)
in subsection (a)—
(i)
by striking “an insured depository institution” and inserting “a regulated financial institution”; and
(ii)
by inserting “or financial” after “credit”;
(B)
in subsection (b)—
(i)
in paragraph (1)—
(I)
in subparagraph (A)—
(aa)
in clause (ii), by striking “and” at the end;
(bb)
by redesignating clause (iii) as clause (iv); and
(cc)
by inserting after clause (ii) the following:

“(iii) disclose whether the institution engaged in acts or practices that the Bureau of Consumer Financial Protection has determined, and has publicly disclosed, violate the enumerated consumer laws; and”

(II)
by striking subparagraph (B) and inserting the following:

“(B) Metropolitan area distinctions—The information required under clauses (i) and (ii) of subparagraph (A) shall be presented separately for each assessment area.

“(C) Treatment with respect to violations of enumerated consumer laws—If a regulated financial institution has engaged in acts or practices that the appropriate Federal financial supervisory agency has determined to be unfair, deceptive, or abusive or acts or practices that violate enumerated consumer laws intended to ensure the fair, equitable, and nondiscriminatory access to credit for individuals and communities that are enforced by the Bureau of Consumer Financial Protection or other Federal or State agencies, the written evaluation shall be negatively influenced in a manner commensurate with the extent of the harm suffered by those individuals and communities.”

(ii)
in paragraph (2)—
(I)
by striking subparagraphs (A), (B), (C), and (D) and inserting the following:

“(A) “Outstanding record of meeting community credit or other financial needs”.

“(B) “Satisfactory record of meeting community credit or other financial needs”.

“(C) “Sufficient record of meeting community credit or other financial needs”.

“(D) “Needs to improve record of meeting community credit or other financial needs”.

“(E) “Substantial noncompliance in meeting community credit or other financial needs”.”

(iii)
by inserting after the flush text following paragraph (2) the following:

“(3) Additional authority—The appropriate Federal financial supervisory agencies may—

“(A) alter the ratings under this subsection to change or include additional ratings; and

“(B) develop an accompanying point system that includes ranges for each rating category under paragraph (2).”

(C)
by redesignating subsection (e) as subsection (f); and
(D)
by inserting after subsection (d) the following:

“(e) Appeals of rating—If a regulated financial institution appeals the assigned rating under this section, the appropriate Federal financial supervisory agency shall post a public notice of the appeal on the website of the appropriate Federal financial supervisory agency.”

(4)
by adding at the end the following:

“810. Data collection and reporting requirements

“(a) Data collection

“(1) Small business and small farm loans—Each regulated financial institution shall collect and maintain in machine readable form, as prescribed by the appropriate Federal financial supervisory agency, until the completion of the next examination under this title, the following data for each small business or small farm loan originated or purchased by the regulated financial institution:

“(A) A unique number or alpha-numeric symbol that can be used to identify the relevant loan.

“(B) The loan amount at origination.

“(C) The loan location.

“(D) An indicator whether the loan was to a business or farm with gross annual revenues of $1,000,000 or less.

“(2) Consumer loans—Each regulated financial institution shall collect and maintain in machine readable form, as prescribed by the appropriate Federal financial supervisory agency, data for consumer loans originated or purchased by the regulated financial institution, including motor vehicle loans, credit cards, home equity loans, and other secured or unsecured loans. The regulated financial institution shall maintain data separately for each category of consumer loan, including the following for each loan:

“(A) A unique number or alpha-numeric symbol that can be used to identify the relevant loan.

“(B) The loan amount at origination or purchase.

“(C) The loan location.

“(D) The gross annual income of the borrower that the regulated financial institution considered in making its credit decision.

“(3) Community development loans and investments—Each regulated financial institution shall collect and maintain in machine readable form, as prescribed by the appropriate Federal financial supervisory agency, data on the categories of community development lending and investments, including data regarding financing affordable housing, small business development, and economic development.

“(4) Assessment area data—Each regulated financial institution shall collect and report to the appropriate Federal financial supervisory agency by March 1 of each year a list for each assessment area showing the geographies within the area.

“(5) Deposits—The appropriate Federal Supervisory agency shall collect data from regulated financial institutions that reflects how many of the customers of those institutions are low- and moderate-income customers and the services that are used by those customers.

“(b) CRA Small Business Disclosure Statement—The appropriate Federal financial supervisory agency shall prepare annually for each regulated financial institution that reports data pursuant to this section a statement to be known as the “CRA Small Business Disclosure Statement” that contains, on a State-by-State basis, the following:

“(1) For each county (and for each assessment area smaller than a county) with a population of 500,000 persons or fewer in which the regulated financial institution reported a small business or small farm loan:

“(A) The number and amount of small business and small farm loans reported as originated or purchased located in low-, moderate-, middle-, and upper-income geographies.

“(B) A list grouping each geography according to whether the geography is low-, moderate-, middle-, or upper-income.

“(C) A list showing each geography in which the regulated financial institution reported a small business or small farm loan.

“(D) The number and amount of small business and small farm loans to businesses and farms with gross annual revenues of $1,000,000 or less.

“(2) For each county (and for each assessment area smaller than a county) with a population in excess of 500,000 in which the regulated financial institution reported a small business or small farm loan:

“(A) The number and amount of small business and small farm loans reported as originated or purchased located in geographies with median income relative to the area median income of less than 10 percent, 10 or more but less than 20 percent, 20 or more but less than 30 percent, 30 or more but less than 40 percent, 40 or more but less than 50 percent, 50 or more but less than 60 percent, 60 or more but less than 70 percent, 70 or more but less than 80 percent, 80 or more but less than 90 percent, 90 or more but less than 100 percent, 100 or more but less than 110 percent, 110 or more but less than 120 percent, and 120 percent or more.

“(B) A list grouping each geography in the county or assessment area according to whether the median income in the geography relative to the area median income is less than 10 percent, 10 or more but less than 20 percent, 20 or more but less than 30 percent, 30 or more but less than 40 percent, 40 or more but less than 50 percent, 50 or more but less than 60 percent, 60 or more but less than 70 percent, 70 or more but less than 80 percent, 80 or more but less than 90 percent, 90 or more but less than 100 percent, 100 or more but less than 110 percent, 110 or more but less than 120 percent, and 120 percent or more.

“(C) A list showing each geography in which the regulated financial institution reported a small business or small farm loan.

“(D) The number and amount of small business and small farm loans to businesses and farms with gross annual revenues of $1,000,000 or less.

“(3) The number and amount of small business and small farm loans located inside each assessment area reported by the regulated financial institution and the number and amount of small business and small farm loans located outside the assessment areas reported by the regulated financial institution.

“(4) The number and amount of community development loans reported as originated or purchased.

“(c) Aggregate disclosure statements

“(1) In general—Each appropriate Federal financial supervisory agency shall prepare annually, for each county and for each assessment area smaller than a county, an aggregate disclosure statement of small business, small farm, and consumer lending by all regulated financial institutions subject to reporting under this section, which shall indicate, for each geography, the number and amount of all small business, small farm, and consumer loans originated or purchased by reporting regulated financial institutions.

“(2) Adjusted form—An appropriate Federal financial supervisory agency may adjust the form of the disclosure statement prepared under paragraph (1) if necessary, because of special circumstances, to protect the privacy of a borrower or the competitive position of a regulated financial institution.

“(d) Central data depositories—The Federal Financial Institutions Examination Council, in consultation with the appropriate Federal financial supervisory agencies, shall implement a system—

“(1) to allow the public to access online and in a searchable format the data maintained under paragraphs (1) through (4) of subsection (a); and

“(2) that ensures that personally identifiable financial information is not disclosed to public.

“(e) Limitation—An appropriate Federal financial supervisory agency may not use the authorities of the appropriate Federal financial supervisory agency under this section to obtain a record from a regulated financial institution for the purpose of gathering or analyzing the personally identifiable financial information of a consumer.”

(c)
Amendment to the Bank Holding Company Act of 1956— Section 4(k)(6) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(k)(6)) is amended to read as follows:

“(6) Notice and opportunity for comment required

“(A) In general—No financial holding company shall directly or indirectly acquire, and no company that becomes a financial holding company shall directly or indirectly acquire control of, any company in the United States, including through merger, consolidation, or other type of business combination, that is engaged in activities permitted under this subsection or subsection (n) or (o), unless—

“(i) the holding company has provided notice to the Board, not later than 60 days prior to the proposed acquisition or prior to becoming a financial holding company, and during that time period, or such longer time period not exceeding an additional 60 days, as established by the Board;

“(ii) the Board has provided public notice and opportunity for comment for not less than 60 days; and

“(iii) the Board has not issued a notice disapproving the proposed acquisition or retention.

“(B) Factors for consideration—In reviewing any prior notice filed under this paragraph, the Board shall—

“(i) consider the overall rating of the financial holding company under the Community Reinvestment Act of 1977 (12 U.S.C. 2901 et seq.) and any improvement plans submitted pursuant to that Act;

“(ii) provide opportunity for public comment for a period of not less than 60 days;

“(iii) consider changes in the community reinvestment performance of the financial holding company since the last rating under the Community Reinvestment Act of 1977 (12 U.S.C. 2901 et seq.) by the appropriate Federal financial supervisory agency; and

“(iv) require—

“(I) a demonstration that granting the application for a deposit facility is in the public interest, which shall include submission to the appropriate Federal financial supervisory agency of a community benefits plan;

“(II) that the institution consult with community-based organizations and other community stakeholders in developing the community benefits plan; and

“(III) a public hearing for any bank that has received a “need-to-improve” or “sufficient” grade in any assessment area during the last examination under the Community Reinvestment Act of 1977 (12 U.S.C. 2901 et seq.).”

(d)
Technical and conforming amendment— Section 10(c)(2)(H)(i) of the Home Owners' Loan Act (12 U.S.C. 1467a(c)(2)(H)(i)) is amended by striking “section 804(c) of the Community Reinvestment Act of 1977 (12 U.S.C. 2903(c))” and inserting “section 804(f) of the Community Reinvestment Act of 1977 (12 U.S.C. 2903(f))”.

204. Amendments relating to credit union service to underserved areas

(a)
In general— The Federal Credit Union Act (12 U.S.C. 1751 et seq.) is amended—
(1)
in section 101 (12 U.S.C. 1752)—
(A)
in paragraph (8), by striking “and” at the end;
(B)
in paragraph (9), by striking the period at the end and inserting “; and”; and
(C)
by adding at the end the following:

“(10) the term underserved area—

“(A) means a local community, neighborhood, or rural district that—

“(i) is an investment area, as defined in section 103 of the Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 4702), that meets such additional requirements that the Board may impose; and

“(ii) is underserved, based on data of the Board and the Federal banking agencies (as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)), by other depository institutions (as defined in section 19(b)(1)(A) of the Federal Reserve Act (12 U.S.C. 461(b)(1)(A)); and

“(B) notwithstanding subparagraph (A), includes, with respect to any Federal credit union, any geographic area within which the credit union—

“(i) has received approval to provide service before the date of enactment of this paragraph from the Administration; and

“(ii) has established a service facility before that date of enactment.”

(2)
in section 106 (12 U.S.C. 1756), by adding at the end the following: “The Board shall monitor adherence by a Federal credit union to a significant unmet needs plan submitted under section 109(h) by that Federal credit union that describes how the Federal credit union will serve the deposit and other financial needs of the community.”; and
(3)
in section 109 (12 U.S.C. 1759)—
(A)
in subsection (c), by amending paragraph (2) to read as follows:

“(2) Exception for underserved areas

“(A) In general—Notwithstanding subsection (b), the Board may approve an application by a Federal credit union to allow the membership of the credit union to include any person or organization whose principal residence or place of business is located within a local community, neighborhood, or rural district if—

“(i) the Board determines—

“(I) at any time after August 7, 1998, that the local community, neighborhood, or rural district taken into account for purposes of this paragraph is an underserved area; and

“(II) at the time of the approval, that the credit union is well capitalized or adequately capitalized (as defined in section 216(c)(1)); and

“(ii) before the end of the 24-month period beginning on the date of the approval, the credit union has established and maintains an ongoing method to provide services in the local community, neighborhood, or rural district.

“(B) Termination of approval

“(i) In general—Any failure of a Federal credit union to meet the requirement of clause (ii) of subparagraph (A) by the end of the 24-month period referred to in that clause shall constitute a termination, as a matter of law, of any approval of an application under this paragraph by the Board with respect to the membership of the credit union.

“(ii) Significant unmet needs plan—The Board may terminate the membership of a Federal credit union upon a finding that the credit union is not meeting the terms of the significant unmet needs plan of the credit union submitted under subsection (h)(1).

“(C) Credit union reporting requirement—Any Federal credit union that has an application approved under this paragraph shall, as part of the ordinary course of the examination cycle and supervision process, submit a report to the Administration that includes—

“(i) the number of members of the credit union who are members by reason of the application;

“(ii) the number of offices or facilities maintained by the credit union in the local community, neighborhood, or rural district taken into account by the Board in approving the application; and

“(iii) evidence, as specified by the Board by regulation, demonstrating compliance by the credit union with the significant unmet needs plan submitted by the credit union under subsection (h)(1), as specified by the Administration.

“(D) Publication by administration—The Administration shall publish an annual report containing—

“(i) a list of all the applications approved under this paragraph before the date on which the report is published;

“(ii) the number and locations of the underserved areas taken into account in approving those applications;

“(iii) the total number of members of credit unions who are members by reason of the approval of those applications; and

“(iv) evidence demonstrating compliance by credit unions with significant unmet needs plans submitted by the credit unions under subsection (h)(1), as specified by the Administration.”

(B)
in subsection (e)(2), by inserting “subsection (c)(2) and” after “provided in”; and
(C)
by adding at the end the following:

“(h) Additional requirements for community credit unions

“(1) In general—A Federal credit union desiring membership as a credit union described in subsection (b)(3) shall submit to the Board a business plan, which shall include, among other issues, a marketing plan that identifies—

“(A) the unique needs of the various demographic groups in the proposed community; and

“(B) how the credit union will market to each group, particularly underserved groups, to address those needs.

“(2) Public comment and hearing—With respect to a Federal credit union desiring membership as a credit union described in subsection (b)(3) for an area with multiple political jurisdictions with a population of not less than 2,500,000, the Administration shall—

“(A) publish a notice in the Federal Register seeking comment from interested parties about the proposed community; and

“(B) conduct a public hearing regarding the application of the Federal credit union.”

(b)
Regulations— Not later than 1 year after the date of enactment of this Act, the National Credit Union Administration Board shall issue final regulations to implement the amendments made by subsection (a).