Title III — Protections for Veterans, Consumers, and Homeowners

115th Congress · Approved May 24, 2018 · 132 Stat. 1296

TITLE III Protections for Veterans, Consumers, and Homeowners

SEC. 301. Protecting Consumers’ Credit.

(a)

In General.— Section 605A of the Fair Credit Reporting Act (15 U.S.C. 1681c–1) is amended—

(1)

in subsection (a)(1)(A), by striking “ 90 days” and inserting “ 1 year”; and

(2)

by adding at the end the following:

“(i) National Security Freeze.—

“(1) Definitions.—For purposes of this subsection:

“(A) The term ‘consumer reporting agency’ means a consumer reporting agency described in section 603(p).

“(B) The term ‘proper identification’ has the meaning of such term as used under section 610.

“(C) The term ‘security freeze’ means a restriction that prohibits a consumer reporting agency from disclosing the contents of a consumer report that is subject to such security freeze to any person requesting the consumer report.

“(2) Placement of security freeze.—

“(A) In general.—Upon receiving a direct request from a consumer that a consumer reporting agency place a security freeze, and upon receiving proper identification from the consumer, the consumer reporting agency shall, free of charge, place the security freeze not later than—

“(i) in the case of a request that is by toll-free telephone or secure electronic means, 1 business day after receiving the request directly from the consumer; or

“(ii) in the case of a request that is by mail, 3 business days after receiving the request directly from the consumer.

“(B) Confirmation and additional information.—Not later than 5 business days after placing a security freeze under subparagraph (A), a consumer reporting agency shall—

“(i) send confirmation of the placement to the consumer; and

“(ii) inform the consumer of—

“(I) the process by which the consumer may remove the security freeze, including a mechanism to authenticate the consumer; and

“(II) the consumer’s right described in section 615(d)(1)(D).

“(C) Notice to third parties.—A consumer reporting agency may advise a third party that a security freeze has been placed with respect to a consumer under subparagraph (A).

“(3) Removal of security freeze.—

“(A) In general.—A consumer reporting agency shall remove a security freeze placed on the consumer report of a consumer only in the following cases:

“(i) Upon the direct request of the consumer.

“(ii) The security freeze was placed due to a material misrepresentation of fact by the consumer.

“(B) Notice if removal not by request.—If a consumer reporting agency removes a security freeze under subparagraph (A)(ii), the consumer reporting agency shall notify the consumer in writing prior to removing the security freeze.

“(C) Removal of security freeze by consumer request.—Except as provided in subparagraph (A)(ii), a security freeze shall remain in place until the consumer directly requests that the security freeze be removed. Upon receiving a direct request from a consumer that a consumer reporting agency remove a security freeze, and upon receiving proper identification from the consumer, the consumer reporting agency shall, free of charge, remove the security freeze not later than—

“(i) in the case of a request that is by toll-free telephone or secure electronic means, 1 hour after receiving the request for removal; or

“(ii) in the case of a request that is by mail, 3 business days after receiving the request for removal.

“(D) Third-party requests.—If a third party requests access to a consumer report of a consumer with respect to which a security freeze is in effect, where such request is in connection with an application for credit, and the consumer does not allow such consumer report to be accessed, the third party may treat the application as incomplete.

“(E) Temporary removal of security freeze.—Upon receiving a direct request from a consumer under subparagraph (A)(i), if the consumer requests a temporary removal of a security freeze, the consumer reporting agency shall, in accordance with subparagraph (C), remove the security freeze for the period of time specified by the consumer.

“(4) Exceptions.—A security freeze shall not apply to the making of a consumer report for use of the following:

“(A) A person or entity, or a subsidiary, affiliate, or agent of that person or entity, or an assignee of a financial obligation owed by the consumer to that person or entity, or a prospective assignee of a financial obligation owed by the consumer to that person or entity in conjunction with the proposed purchase of the financial obligation, with which the consumer has or had prior to assignment an account or contract including a demand deposit account, or to whom the consumer issued a negotiable instrument, for the purposes of reviewing the account or collecting the financial obligation owed for the account, contract, or negotiable instrument. For purposes of this subparagraph, ‘reviewing the account’ includes activities related to account maintenance, monitoring, credit line increases, and account upgrades and enhancements.

“(B) Any Federal, State, or local agency, law enforcement agency, trial court, or private collection agency acting pursuant to a court order, warrant, or subpoena.

“(C) A child support agency acting pursuant to part D of title IV of the Social Security Act (42 U.S.C. 651 et seq.).

“(D) A Federal agency or a State or its agents or assigns acting to investigate fraud or acting to investigate or collect delinquent taxes or unpaid court orders or to fulfill any of its other statutory responsibilities, provided such responsibilities are consistent with a permissible purpose under section 604.

“(E) By a person using credit information for the purposes described under section 604(c).

“(F) Any person or entity administering a credit file monitoring subscription or similar service to which the consumer has subscribed.

“(G) Any person or entity for the purpose of providing a consumer with a copy of the consumer’s consumer report or credit score, upon the request of the consumer.

“(H) Any person using the information in connection with the underwriting of insurance.

“(I) Any person using the information for employment, tenant, or background screening purposes.

“(J) Any person using the information for assessing, verifying, or authenticating a consumer’s identity for purposes other than the granting of credit, or for investigating or preventing actual or potential fraud.

“(5) Notice of rights.—At any time a consumer is required to receive a summary of rights required under section 609, the following notice shall be included: “ ‘Consumers Have the Right To Obtain a Security Freeze “ ‘You have a right to place a “security freeze” on your credit report, which will prohibit a consumer reporting agency from releasing information in your credit report without your express authorization. The security freeze is designed to prevent credit, loans, and services from being approved in your name without your consent. However, you should be aware that using a security freeze to take control over who gets access to the personal and financial information in your credit report may delay, interfere with, or prohibit the timely approval of any subsequent request or application you make regarding a new loan, credit, mortgage, or any other account involving the extension of credit. “ ‘As an alternative to a security freeze, you have the right to place an initial or extended fraud alert on your credit file at no cost. An initial fraud alert is a 1-year alert that is placed on a consumer’s credit file. Upon seeing a fraud alert display on a consumer’s credit file, a business is required to take steps to verify the consumer’s identity before extending new credit. If you are a victim of identity theft, you are entitled to an extended fraud alert, which is a fraud alert lasting 7 years. “ ‘A security freeze does not apply to a person or entity, or its affiliates, or collection agencies acting on behalf of the person or entity, with which you have an existing account that requests information in your credit report for the purposes of reviewing or collecting the account. Reviewing the account includes activities related to account maintenance, monitoring, credit line increases, and account upgrades and enhancements.’.

“(6) Webpage.—

“(A) Consumer reporting agencies.—A consumer reporting agency shall establish a webpage that—

“(i) allows a consumer to request a security freeze;

“(ii) allows a consumer to request an initial fraud alert;

“(iii) allows a consumer to request an extended fraud alert;

“(iv) allows a consumer to request an active duty fraud alert;

“(v) allows a consumer to opt-out of the use of information in a consumer report to send the consumer a solicitation of credit or insurance, in accordance with section 615(d); and

“(vi) shall not be the only mechanism by which a consumer may request a security freeze.

“(B) FTC.—The Federal Trade Commission shall establish a single webpage that includes a link to each webpage established under subparagraph (A) within the Federal Trade Commission’s website www.Identitytheft.gov, or a successor website.

“(j) National Protection for Files and Credit Records of Protected Consumers.—

“(1) Definitions.—As used in this subsection:

“(A) The term ‘consumer reporting agency’ means a consumer reporting agency described in section 603(p).

“(B) The term ‘protected consumer’ means an individual who is—

“(i) under the age of 16 years at the time a request for the placement of a security freeze is made; or

“(ii) an incapacitated person or a protected person for whom a guardian or conservator has been appointed.

“(C) The term ‘protected consumer’s representative’ means a person who provides to a consumer reporting agency sufficient proof of authority to act on behalf of a protected consumer.

“(D) The term ‘record’ means a compilation of information that—

“(i) identifies a protected consumer;

“(ii) is created by a consumer reporting agency solely for the purpose of complying with this subsection; and

“(iii) may not be created or used to consider the protected consumer’s credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living.

“(E) The term ‘security freeze’ means a restriction that prohibits a consumer reporting agency from disclosing the contents of a consumer report that is the subject of such security freeze or, in the case of a protected consumer for whom the consumer reporting agency does not have a file, a record that is subject to such security freeze to any person requesting the consumer report for the purpose of opening a new account involving the extension of credit.

“(F) The term ‘sufficient proof of authority’ means documentation that shows a protected consumer’s representative has authority to act on behalf of a protected consumer and includes—

“(i) an order issued by a court of law;

“(ii) a lawfully executed and valid power of attorney;

“(iii) a document issued by a Federal, State, or local government agency in the United States showing proof of parentage, including a birth certificate; or

“(iv) with respect to a protected consumer who has been placed in a foster care setting, a written communication from a county welfare department or its agent or designee, or a county probation department or its agent or designee, certifying that the protected consumer is in a foster care setting under its jurisdiction.

“(G) The term ‘sufficient proof of identification’ means information or documentation that identifies a protected consumer and a protected consumer’s representative and includes—

“(i) a social security number or a copy of a social security card issued by the Social Security Administration;

“(ii) a certified or official copy of a birth certificate issued by the entity authorized to issue the birth certificate; or

“(iii) a copy of a driver’s license, an identification card issued by the motor vehicle administration, or any other government issued identification.

“(2) Placement of security freeze for a protected consumer.—

“(A) In general.—Upon receiving a direct request from a protected consumer’s representative that a consumer reporting agency place a security freeze, and upon receiving sufficient proof of identification and sufficient proof of authority, the consumer reporting agency shall, free of charge, place the security freeze not later than—

“(i) in the case of a request that is by toll-free telephone or secure electronic means, 1 business day after receiving the request directly from the protected consumer’s representative; or

“(ii) in the case of a request that is by mail, 3 business days after receiving the request directly from the protected consumer’s representative.

“(B) Confirmation and additional information.—Not later than 5 business days after placing a security freeze under subparagraph (A), a consumer reporting agency shall—

“(i) send confirmation of the placement to the protected consumer’s representative; and

“(ii) inform the protected consumer’s representative of the process by which the protected consumer may remove the security freeze, including a mechanism to authenticate the protected consumer’s representative.

“(C) Creation of file.—If a consumer reporting agency does not have a file pertaining to a protected consumer when the consumer reporting agency receives a direct request under subparagraph (A), the consumer reporting agency shall create a record for the protected consumer.

“(3) Prohibition on release of record or file of protected consumer.—After a security freeze has been placed under paragraph (2)(A), and unless the security freeze is removed in accordance with this subsection, a consumer reporting agency may not release the protected consumer’s consumer report, any information derived from the protected consumer’s consumer report, or any record created for the protected consumer.

“(4) Removal of a protected consumer security freeze.—

“(A) In general.—A consumer reporting agency shall remove a security freeze placed on the consumer report of a protected consumer only in the following cases:

“(i) Upon the direct request of the protected consumer’s representative.

“(ii) Upon the direct request of the protected consumer, if the protected consumer is not under the age of 16 years at the time of the request.

“(iii) The security freeze was placed due to a material misrepresentation of fact by the protected consumer’s representative.

“(B) Notice if removal not by request.—If a consumer reporting agency removes a security freeze under subparagraph (A)(iii), the consumer reporting agency shall notify the protected consumer’s representative in writing prior to removing the security freeze.

“(C) Removal of freeze by request.—Except as provided in subparagraph (A)(iii), a security freeze shall remain in place until a protected consumer’s representative or protected consumer described in subparagraph (A)(ii) directly requests that the security freeze be removed. Upon receiving a direct request from the protected consumer’s representative or protected consumer described in subparagraph (A)(ii) that a consumer reporting agency remove a security freeze, and upon receiving sufficient proof of identification and sufficient proof of authority, the consumer reporting agency shall, free of charge, remove the security freeze not later than—

“(i) in the case of a request that is by toll-free telephone or secure electronic means, 1 hour after receiving the request for removal; or

“(ii) in the case of a request that is by mail, 3 business days after receiving the request for removal.

“(D) Temporary removal of security freeze.—Upon receiving a direct request from a protected consumer or a protected consumer’s representative under subparagraph (A)(i), if the protected consumer or protected consumer’s representative requests a temporary removal of a security freeze, the consumer reporting agency shall, in accordance with subparagraph (C), remove the security freeze for the period of time specified by the protected consumer or protected consumer’s representative.”

(b)

Conforming Amendment.— Section 625(b)(1) of the Fair Credit Reporting Act (15 U.S.C. 1681t(b)(1)) is amended—

(1)

in subparagraph (H), by striking “ or” at the end; and

(2)

by adding at the end the following:

“(J) subsections (i) and (j) of section 605A relating to security freezes; or”

(c)

Effective Date.— The amendments made by this section shall take effect on the date that is 120 days after the date of enactment of this Act.

SEC. 302. Protecting Veterans’ Credit.

(a)

Purposes.— The purposes of this section are—

(1)

to rectify problematic reporting of medical debt included in a consumer report of a veteran due to inappropriate or delayed payment for hospital care, medical services, or extended care services provided in a non-Department of Veterans Affairs facility under the laws administered by the Secretary of Veterans Affairs; and

(2)

to clarify the process of debt collection for such medical debt.

(b)

Amendments to Fair Credit Reporting Act.—

(1)

Veteran’s medical debt defined.— Section 603 of the Fair Credit Reporting Act (15 U.S.C. 1681a) is amended by adding at the end the following:

“(z) Veteran.—The term ‘veteran’ has the meaning given the term in section 101 of title 38, United States Code.

“(aa) Veteran’s Medical Debt.—The term ‘veteran’s medical debt’—

“(1) means a medical collection debt of a veteran owed to a non-Department of Veterans Affairs health care provider that was submitted to the Department for payment for health care authorized by the Department of Veterans Affairs; and

“(2) includes medical collection debt that the Department of Veterans Affairs has wrongfully charged a veteran.”

(2)

Exclusion for veteran’s medical debt.— Section 605(a) of the Fair Credit Reporting Act (15 U.S.C. 1681c(a)) is amended by adding at the end the following:

“(7) With respect to a consumer reporting agency described in section 603(p), any information related to a veteran’s medical debt if the date on which the hospital care, medical services, or extended care services was rendered relating to the debt antedates the report by less than 1 year if the consumer reporting agency has actual knowledge that the information is related to a veteran’s medical debt and the consumer reporting agency is in compliance with its obligation under section 302(c)(5) of the Economic Growth, Regulatory Relief, and Consumer Protection Act.

“(8) With respect to a consumer reporting agency described in section 603(p), any information related to a fully paid or settled veteran’s medical debt that had been characterized as delinquent, charged off, or in collection if the consumer reporting agency has actual knowledge that the information is related to a veteran’s medical debt and the consumer reporting agency is in compliance with its obligation under section 302(c)(5) of the Economic Growth, Regulatory Relief, and Consumer Protection Act.”

(3)

Removal of veteran’s medical debt from consumer report.— Section 611 of the Fair Credit Reporting Act (15 U.S.C. 1681i) is amended—

(A)

in subsection (a)(1)(A), by inserting “ and except as provided in subsection (g)” after “ subsection (f)”; and

(B)

by adding at the end the following:

“(g) Dispute Process for Veteran’s Medical Debt.—

“(1) In general.—With respect to a veteran’s medical debt, the veteran may submit a notice described in paragraph (2), proof of liability of the Department of Veterans Affairs for payment of that debt, or documentation that the Department of Veterans Affairs is in the process of making payment for authorized hospital care, medical services, or extended care services rendered to a consumer reporting agency or a reseller to dispute the inclusion of that debt on a consumer report of the veteran.

“(2) Notification to veteran.—The Department of Veterans Affairs shall submit to a veteran a notice that the Department of Veterans Affairs has assumed liability for part or all of a veteran’s medical debt.

“(3) Deletion of information from file.—If a consumer reporting agency receives notice, proof of liability, or documentation under paragraph (1), the consumer reporting agency shall delete all information relating to the veteran’s medical debt from the file of the veteran and notify the furnisher and the veteran of that deletion.”

(c)

Verification of Veteran’s Medical Debt.—

(1)

Definitions.— For purposes of this subsection—

(A)

the term “consumer reporting agency” means a consumer reporting agency described in section 603(p) of the Fair Credit Reporting Act (15 U.S.C. 1681a(p)); and

(B)

the terms “veteran” and “veteran’s medical debt” have the meanings given those terms in section 603 of the Fair Credit Reporting Act (15 U.S.C. 1681a), as added by subsection (b)(1).

(2)

Establishment.— Not later than 1 year after the date of enactment of this Act, the Secretary of Veterans Affairs shall establish a database to allow consumer reporting agencies to verify whether a debt furnished to a consumer reporting agency is a veteran’s medical debt.

(3)

Database features.— The Secretary of Veterans Affairs shall ensure that the database established under paragraph (2), to the extent permitted by law, provides consumer reporting agencies with—

(A)

sufficiently detailed and specific information to verify whether a debt being furnished to the consumer reporting agency is a veteran’s medical debt;

(B)

access to verification information in a secure electronic format;

(C)

timely access to verification information; and

(D)

any other features that would promote the efficient, timely, and secure delivery of information that consumer reporting agencies could use to verify whether a debt is a veteran’s medical debt.

(4)

Stakeholder input.— Prior to establishing the database for verification under paragraph (2), the Secretary of Veterans Affairs shall publish in the Federal Register a notice and request for comment that solicits input from consumer reporting agencies and other stakeholders.

(5)

Verification.— Provided the database established under paragraph (2) is fully functional and the data available to consumer reporting agencies, a consumer reporting agency shall use the database as a means to identify a veteran’s medical debt pursuant to paragraphs (7) and (8) of section 605(a) of the Fair Credit Reporting Act (15 U.S.C. 1681c(a)), as added by subsection (b)(2).

(d)

Credit Monitoring.—

(1)

In general.— Section 605A of the Fair Credit Reporting Act (15 U.S.C. 1681c–1), as amended by section 301(a), is amended by adding at the end the following:

“(k) Credit Monitoring.—

“(1) Definitions.—In this subsection:

“(A) The term ‘active duty military consumer’ includes a member of the National Guard.

“(B) The term ‘National Guard’ has the meaning given the term in section 101(c) of title 10, United States Code.

“(2) Credit monitoring.—A consumer reporting agency described in section 603(p) shall provide a free electronic credit monitoring service that, at a minimum, notifies a consumer of material additions or modifications to the file of the consumer at the consumer reporting agency to any consumer who provides to the consumer reporting agency—

“(A) appropriate proof that the consumer is an active duty military consumer; and

“(B) contact information of the consumer.

“(3) Rulemaking.—Not later than 1 year after the date of enactment of this subsection, the Federal Trade Commission shall promulgate regulations regarding the requirements of this subsection, which shall at a minimum include—

“(A) a definition of an electronic credit monitoring service and material additions or modifications to the file of a consumer; and

“(B) what constitutes appropriate proof.

“(4) Applicability.—

“(A) Sections 616 and 617 shall not apply to any violation of this subsection.

“(B) This subsection shall be enforced exclusively under section 621 by the Federal agencies and Federal and State officials identified in that section.”

(2)

Conforming amendment.— Section 625(b)(1) of the Fair Credit Reporting Act (15 U.S.C. 1681t(b)(1)), as amended by section 301(b), is amended by adding at the end the following:

“(K) subsection (k) of section 605A, relating to credit monitoring for active duty military consumers, as defined in that subsection;”

(e)

Effective Date.— The amendments made by this section shall take effect on the date that is 1 year after the date of enactment of this Act.

SEC. 303. Immunity from Suit for Disclosure of Financial Exploitation of Senior Citizens.

(a)

Immunity.—

(1)

Definitions.— In this section—

(A)

the term “Bank Secrecy Act officer” means an individual responsible for ensuring compliance with the requirements mandated by subchapter II of chapter 53 of title 31, United States Code (commonly known as the “Bank Secrecy Act”);

(B)

the term “broker-dealer” means a broker and a dealer, as those terms are defined in section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a));

(C)

the term “covered agency” means—

(i)

a State financial regulatory agency, including a State securities or law enforcement authority and a State insurance regulator;

(ii)

each of the Federal agencies represented in the membership of the Financial Institutions Examination Council established under section 1004 of the Federal Financial Institutions Examination Council Act of 1978 (12 U.S.C. 3303);

(iii)

a securities association registered under section 15A of the Securities Exchange Act of 1934 (15 U.S.C. 78o–3);

(iv)

the Securities and Exchange Commission;

(v)

a law enforcement agency; or

(vi)

a State or local agency responsible for administering adult protective service laws;

(D)

the term “covered financial institution” means—

(i)

a credit union;

(ii)

a depository institution;

(iii)

an investment adviser;

(iv)

a broker-dealer;

(v)

an insurance company;

(vi)

an insurance agency; or

(vii)

a transfer agent;

(E)

the term “credit union” has the meaning given the term in section 2 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (12 U.S.C. 5301);

(F)

the term “depository institution” has the meaning given the term in section 3(c) of the Federal Deposit Insurance Act (12 U.S.C. 1813(c));

(G)

the term “exploitation” means the fraudulent or otherwise illegal, unauthorized, or improper act or process of an individual, including a caregiver or a fiduciary, that—

(i)

uses the resources of a senior citizen for monetary or personal benefit, profit, or gain; or

(ii)

results in depriving a senior citizen of rightful access to or use of benefits, resources, belongings, or assets;

(H)

the term “insurance agency” means any business entity that sells, solicits, or negotiates insurance coverage;

(I)

the term “insurance company” has the meaning given the term in section 2(a) of the Investment Company Act of 1940 (15 U.S.C. 80a–2(a));

(J)

the term “insurance producer” means an individual who is required under State law to be licensed in order to sell, solicit, or negotiate insurance coverage;

(K)

the term “investment adviser” has the meaning given the term in section 202(a) of the Investment Advisers Act of 1940 (15 U.S.C. 80b–2(a));

(L)

the term “investment adviser representative” means an individual who—

(i)

is employed by, or associated with, an investment adviser; and

(ii)

does not perform solely clerical or ministerial acts;

(M)

the term “registered representative” means an individual who represents a broker-dealer in effecting or attempting to effect a purchase or sale of securities;

(N)

the term “senior citizen” means an individual who is not younger than 65 years of age;

(O)

the term “State” means each of the several States, the District of Columbia, and any territory or possession of the United States;

(P)

the term “State insurance regulator” has the meaning given the term in section 315 of the Gramm-Leach-Bliley Act (15 U.S.C. 6735);

(Q)

the term “State securities or law enforcement authority” has the meaning given the term in section 24(f)(4) of the Securities Exchange Act of 1934 (15 U.S.C. 78x(f)(4)); and

(R)

the term “transfer agent” has the meaning given the term in section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)).

(2)

Immunity from suit.—

(A)

Immunity for individuals.— An individual who has received the training described in subsection (b) shall not be liable, including in any civil or administrative proceeding, for disclosing the suspected exploitation of a senior citizen to a covered agency if the individual, at the time of the disclosure—

(i)

served as a supervisor or in a compliance or legal function (including as a Bank Secrecy Act officer) for, or, in the case of a registered representative, investment adviser representative, or insurance producer, was affiliated or associated with, a covered financial institution; and

(ii)

made the disclosure—

(I)

in good faith; and

(II)

with reasonable care.

(B)

Immunity for covered financial institutions.— A covered financial institution shall not be liable, including in any civil or administrative proceeding, for a disclosure made by an individual described in subparagraph (A) if—

(i)

the individual was employed by, or, in the case of a registered representative, insurance producer, or investment adviser representative, affiliated or associated with, the covered financial institution at the time of the disclosure; and

(ii)

before the time of the disclosure, each individual described in subsection (b)(1) received the training described in subsection (b).

(C)

Rule of construction.— Nothing in subparagraph (A) or (B) shall be construed to limit the liability of an individual or a covered financial institution in a civil action for any act, omission, or fraud that is not a disclosure described in subparagraph (A).

(b)

Training.—

(1)

In general.— A covered financial institution or a third party selected by a covered financial institution may provide the training described in paragraph (2)(A) to each officer or employee of, or registered representative, insurance producer, or investment adviser representative affiliated or associated with, the covered financial institution who—

(A)

is described in subsection (a)(2)(A)(i);

(B)

may come into contact with a senior citizen as a regular part of the professional duties of the individual; or

(C)

may review or approve the financial documents, records, or transactions of a senior citizen in connection with providing financial services to a senior citizen.

(2)

Content.—

(A)

In general.— The content of the training that a covered financial institution or a third party selected by the covered financial institution may provide under paragraph (1) shall—

(i)

be maintained by the covered financial institution and made available to a covered agency with examination authority over the covered financial institution, upon request, except that a covered financial institution shall not be required to maintain or make available such content with respect to any individual who is no longer employed by, or affiliated or associated with, the covered financial institution;

(ii)

instruct any individual attending the training on how to identify and report the suspected exploitation of a senior citizen internally and, as appropriate, to government officials or law enforcement authorities, including common signs that indicate the financial exploitation of a senior citizen;

(iii)

discuss the need to protect the privacy and respect the integrity of each individual customer of the covered financial institution; and

(iv)

be appropriate to the job responsibilities of the individual attending the training.

(B)

Timing.— The training under paragraph (1) shall be provided—

(i)

as soon as reasonably practicable; and

(ii)

with respect to an individual who begins employment, or becomes affiliated or associated, with a covered financial institution after the date of enactment of this Act, not later than 1 year after the date on which the individual becomes employed by, or affiliated or associated with, the covered financial institution in a position described in subparagraph (A), (B), or (C) of paragraph (1).

(C)

Records.— A covered financial institution shall—

(i)

maintain a record of each individual who—

(I)

is employed by, or affiliated or associated with, the covered financial institution in a position described in subparagraph (A), (B), or (C) of paragraph (1); and

(II)

has completed the training under paragraph (1), regardless of whether the training was—

(aa)

provided by the covered financial institution or a third party selected by the covered financial institution;

(bb)

completed before the individual was employed by, or affiliated or associated with, the covered financial institution; and

(cc)

completed before, on, or after the date of enactment of this Act; and

(ii)

upon request, provide a record described in clause (i) to a covered agency with examination authority over the covered financial institution.

(c)

Relationship to State Law.— Nothing in this section shall be construed to preempt or limit any provision of State law, except only to the extent that subsection (a) provides a greater level of protection against liability to an individual described in subsection (a)(2)(A) or to a covered financial institution described in subsection (a)(2)(B) than is provided under State law.

SEC. 304. Restoration of the Protecting Tenants at Foreclosure Act of 2009.

(a)

Repeal of Sunset Provision.— Section 704 of the Protecting Tenants at Foreclosure Act of 2009 (12 U.S.C. 5201 note; 12 U.S.C. 5220 note; 42 U.S.C. 1437f note) is repealed.

(b)

Restoration.— Sections 701 through 703 of the Protecting Tenants at Foreclosure Act of 2009, the provisions of law amended by such sections, and any regulations promulgated pursuant to such sections, as were in effect on December 30, 2014, are restored and revived.

(c)

Effective Date.— Subsections (a) and (b) shall take effect on the date that is 30 days after the date of enactment of this Act.

SEC. 305. Remediating Lead and Asbestos Hazards.

Section 109(a)(1) of the Emergency Economic Stabilization Act of 2008 (12 U.S.C. 5219(a)(1)) is amended, in the second sentence, by inserting “ and to remediate lead and asbestos hazards in residential properties” before the period at the end.

SEC. 306. Family Self-Sufficiency Program.

(a)

In General.— Section 23 of the United States Housing Act of 1937 (42 U.S.C. 1437u) is amended—

(1)

in subsection (a)—

(A)

by striking “ public housing and”; and

(B)

by striking “ the certificate and voucher programs under section 8” and inserting “ sections 8 and 9”;

(2)

by amending subsection (b) to read as follows:

“(b) Continuation of Prior Required Programs.—

“(1) In general.—Each public housing agency that was required to administer a local Family Self-Sufficiency program on the date of enactment of the Economic Growth, Regulatory Relief, and Consumer Protection Act shall operate such local program for, at a minimum, the number of families the agency was required to serve on the date of enactment of such Act, subject only to the availability under appropriations Acts of sufficient amounts for housing assistance and the requirements of paragraph (2).

“(2) Reduction.—The number of families for which a public housing agency is required to operate such local program under paragraph (1) shall be decreased by 1 for each family from any supported rental housing program administered by such agency that, after October 21, 1998, fulfills its obligations under the contract of participation.

“(3) Exception.—The Secretary shall not require a public housing agency to carry out a mandatory program for a period of time upon the request of the public housing agency and upon a determination by the Secretary that implementation is not feasible because of local circumstances, which may include—

“(A) lack of supportive services accessible to eligible families, which shall include insufficient availability of resources for programs under title I of the Workforce Investment Act of 1998 (29 U.S.C. 2801 et seq.);

“(B) lack of funding for reasonable administrative costs;

“(C) lack of cooperation by other units of State or local government; or

“(D) any other circumstances that the Secretary may consider appropriate.”

(3)

by striking subsection (i);

(4)

by redesignating subsections (c), (d), (e), (f), (g), and (h) as subsections (d), (e), (f), (g), (h), and (i) respectively;

(5)

by inserting after subsection (b), as amended, the following:

“(c) Eligibility.—

“(1) Eligible families.—A family is eligible to participate in a local Family Self-Sufficiency program under this section if—

“(A) at least 1 household member seeks to become and remain employed in suitable employment or to increase earnings; and

“(B) the household member receives direct assistance under section 8 or resides in a unit assisted under section 8 or 9.

“(2) Eligible entities.—The following entities are eligible to administer a local Family Self-Sufficiency program under this section:

“(A) A public housing agency administering housing assistance to or on behalf of an eligible family under section 8 or 9.

“(B) The owner or sponsor of a multifamily property receiving project-based rental assistance under section 8, in accordance with the requirements under subsection (l).”

(6)

in subsection (d), as so redesignated—

(A)

in paragraph (1)—

(i)

by striking “ public housing agency” the first time it appears and inserting “ eligible entity”;

(ii)

in the first sentence, by striking “ each leaseholder receiving assistance under the certificate and voucher programs of the public housing agency under section 8 or residing in public housing administered by the agency” and inserting “ a household member of an eligible family”; and

(iii)

by striking the third sentence and inserting the following: “ Housing assistance may not be terminated as a consequence of either successful completion of the contract of participation or failure to complete such contract. A contract of participation shall remain in effect until the participating family exits the Family Self-Sufficiency program upon successful graduation or expiration of the contract of participation, or for other good cause.”;

(B)

in paragraph (2)—

(i)

in the matter preceding subparagraph (A)—

(I)

in the first sentence—

(aa)

by striking “ A local program under this section” and inserting “ An eligible entity”;

(bb)

by striking “ provide” and inserting “ coordinate”; and

(cc)

by striking “ to” and inserting “ for”; and

(II)

in the second sentence—

(aa)

by striking “ provided during” and inserting “ coordinated for”;

(bb)

by striking “ under section 8 or residing in public housing” and inserting “ pursuant to section 8 or 9 and for the duration of the contract of participation”; and

(cc)

by inserting “ , but are not limited to” after “ may include”;

(ii)

in subparagraph (D), by inserting “ or attainment of a high school equivalency certificate” after “ high school”;

(iii)

by striking subparagraph (G);

(iv)

by redesignating subparagraphs (E), (F), and (J) as subparagraphs (F), (G), and (K) respectively;

(v)

by inserting after subparagraph (D) the following:

“(E) education in pursuit of a post-secondary degree or certification;”

(vi)

in subparagraph (H), by inserting “ financial literacy, such as training in financial management, financial coaching, and asset building, and” after “ training in”;

(vii)

in subparagraph (I), by striking “ and” at the end; and

(viii)

by inserting after subparagraph (I) the following:

“(J) homeownership education and assistance; and”

; and

(C)

in paragraph (3)—

(i)

in the first sentence, by inserting “ the first recertification of income after” after “ not later than 5 years after”; and

(ii)

in the second sentence—

(I)

by striking “ public housing agency” and inserting “ eligible entity”; and

(II)

by striking “ of the agency”;

(D)

by amending paragraph (4) to read as follows:

“(4) Employment.—The contract of participation shall require 1 household member of the participating family to seek and maintain suitable employment.”

; and

(E)

by adding at the end the following:

“(5) Nonparticipation.—Assistance under section 8 or 9 for a family that elects not to participate in a Family Self-Sufficiency program shall not be delayed by reason of such election.”

(7)

in subsection (e), as so redesignated—

(A)

in paragraph (1), by striking “ whose monthly adjusted income does not exceed 50 percent” and all that follows through the period at the end of the third sentence and inserting “ shall be calculated under the rental provisions of section 3 or section 8(o), as applicable.”;

(B)

in paragraph (2)—

(i)

by striking the first sentence and inserting the following: “ For each participating family, an amount equal to any increase in the amount of rent paid by the family in accordance with the provisions of section 3 or 8(o), as applicable, that is attributable to increases in earned income by the participating family, shall be placed in an interest-bearing escrow account established by the eligible entity on behalf of the participating family. Notwithstanding any other provision of law, an eligible entity may use funds it controls under section 8 or 9 for purposes of making the escrow deposit for participating families assisted under, or residing in units assisted under, section 8 or 9, respectively, provided such funds are offset by the increase in the amount of rent paid by the participating family.”;

(ii)

by striking the second sentence and inserting the following: “ All Family Self-Sufficiency programs administered under this section shall include an escrow account.”;

(iii)

in the fourth sentence, by striking “ subsection (c)” and inserting “ subsection (d)”; and

(iv)

in the last sentence—

(I)

by striking “ A public housing agency” and inserting “ An eligible entity”; and

(II)

by striking “ the public housing agency” and inserting “ such eligible entity”; and

(C)

by amending paragraph (3) to read as follows:

“(3) Forfeited escrow.—Any amount placed in an escrow account established by an eligible entity for a participating family as required under paragraph (2), that exists after the end of a contract of participation by a household member of a participating family that does not qualify to receive the escrow, shall be used by the eligible entity for the benefit of participating families in good standing.”

(8)

in subsection (f), as so redesignated, by striking “ , unless the income of the family equals or exceeds 80 percent of the median income of the area (as determined by the Secretary with adjustments for smaller and larger families)”;

(9)

in subsection (g), as so redesignated—

(A)

in paragraph (1)—

(i)

by striking “ public housing agency” and inserting “ eligible entity”;

(ii)

by striking “ the public housing agency” and inserting “ such eligible entity”; and

(iii)

by striking “ subsection (g)” and inserting “ subsection (h)”; and

(B)

in paragraph (2)—

(i)

by striking “ public housing agency” and inserting “ eligible entity” each place that term appears;

(ii)

by striking “ or the Job Opportunities and Basic Skills Training Program under part F of title IV of the Social Security Act”;

(iii)

by inserting “ primary, secondary, and post-secondary” after “ public and private”; and

(iv)

in the second sentence, by inserting “ and tenants served by the program” after “ the unit of general local government”;

(10)

in subsection (h), as so redesignated—

(A)

in paragraph (1)—

(i)

by striking “ public housing agency” and inserting “ eligible entity”;

(ii)

by striking “ participating in the” and inserting “ carrying out a”; and

(iii)

by striking “ to the Secretary”;

(B)

in paragraph (2)—

(i)

by striking “ public housing agency” and inserting “ eligible entity”;

(ii)

by striking “ subsection (f)” and inserting “ subsection (g)”;

(iii)

by striking “ residents of the public housing” and inserting “ the current and prospective participants of the program”; and

(iv)

by striking “ or the Job Opportunities and Basic Skills Training Program under part F of title IV of the Social Security Act”; and

(C)

in paragraph (3)—

(i)

in subparagraph (C)—

(I)

by striking “ subsection (c)(2)” and inserting “ subsection (d)(2)”;

(II)

by striking “ provided to” and inserting “ coordinated on behalf of participating”;

(III)

by inserting “ direct” before “ assistance”; and

(IV)

by striking “ the section 8 and public housing programs” and inserting “ sections 8 and 9”;

(ii)

in subparagraph (D)—

(I)

by striking “ subsection (d)” and inserting “ subsection (e)”; and

(II)

by striking “ public housing agency” and inserting “ eligible entity”;

(iii)

in subparagraph (E), by striking “ deliver” and inserting “ coordinate”;

(iv)

in subparagraph (H), by striking “ the Job Opportunities and Basic Skills Training Program under part F of title IV of the Social Security Act and”; and

(v)

in subparagraph (I), by striking “ public housing or section 8 assistance” and inserting “ assistance under section 8 or 9”;

(11)

by amending subsection (i), as so redesignated, to read as follows:

“(i) Family Self-Sufficiency Awards.—

“(1) In general.—Subject to appropriations, the Secretary shall establish a formula by which annual funds shall be awarded or as otherwise determined by the Secretary for the costs incurred by an eligible entity in administering the Family Self-Sufficiency program under this section.

“(2) Eligibility for awards.—The award established under paragraph (1) shall provide funding for family self-sufficiency coordinators as follows:

“(A) Base award.—An eligible entity serving 25 or more participants in the Family Self-Sufficiency program under this section is eligible to receive an award equal to the costs, as determined by the Secretary, of 1 full-time family self-sufficiency coordinator position. The Secretary may, by regulation or notice, determine the policy concerning the award for an eligible entity serving fewer than 25 such participants, including providing prorated awards or allowing such entities to combine their programs under this section for purposes of employing a coordinator.

“(B) Additional award.—An eligible entity that meets performance standards set by the Secretary is eligible to receive an additional award sufficient to cover the costs of filling an additional family self-sufficiency coordinator position if such entity has 75 or more participating families, and an additional coordinator for each additional 50 participating families, or such other ratio as may be established by the Secretary based on the award allocation evaluation under subparagraph (E).

“(C) State and regional agencies.—For purposes of calculating the award under this paragraph, each administratively distinct part of a State or regional eligible entity may be treated as a separate agency.

“(D) Determination of number of coordinators.—In determining whether an eligible entity meets a specific threshold for funding pursuant to this paragraph, the Secretary shall consider the number of participants enrolled by the eligible entity in its Family Self-Sufficiency program as well as other criteria determined by the Secretary.

“(E) Award allocation evaluation.—The Secretary shall submit to Congress a report evaluating the award allocation under this subsection, and make recommendations based on this evaluation and other related findings to modify such allocation, within 4 years after the date of enactment of the Economic Growth, Regulatory Relief, and Consumer Protection Act, and not less frequently than every 4 years thereafter. The report requirement under this subparagraph shall terminate after the Secretary has submitted 2 such reports to Congress.

“(3) Renewals and allocation.—

“(A) In general.—Funds allocated by the Secretary under this subsection shall be allocated in the following order of priority:

“(i) First priority.—Renewal of the full cost of all coordinators in the previous year at each eligible entity with an existing Family Self-Sufficiency program that meets applicable performance standards set by the Secretary.

“(ii) Second priority.—New or incremental coordinator funding authorized under this section.

“(B) Guidance.—If the first priority, as described in subparagraph (A)(i), cannot be fully satisfied, the Secretary may prorate the funding for each eligible entity, as long as—

“(i) each eligible entity that has received funding for at least 1 part-time coordinator in the prior fiscal year is provided sufficient funding for at least 1 part-time coordinator as part of any such proration; and

“(ii) each eligible entity that has received funding for at least 1 full-time coordinator in the prior fiscal year is provided sufficient funding for at least 1 full-time coordinator as part of any such proration.

“(4) Recapture or offset.—Any awards allocated under this subsection by the Secretary in a fiscal year that have not been spent by the end of the subsequent fiscal year or such other time period as determined by the Secretary may be recaptured by the Secretary and shall be available for providing additional awards pursuant to paragraph (2)(B), or may be offset as determined by the Secretary. Funds appropriated pursuant to this section shall remain available for 3 years in order to facilitate the re-use of any recaptured funds for this purpose.

“(5) Performance reporting.—Programs under this section shall be required to report the number of families enrolled and graduated, the number of established escrow accounts and positive escrow balances, and any other information that the Secretary may require. Program performance shall be reviewed periodically as determined by the Secretary.

“(6) Incentives for innovation and high performance.—The Secretary may reserve up to 5 percent of the amounts made available under this subsection to provide support to or reward Family Self-Sufficiency programs based on the rate of successful completion, increased earned income, or other factors as may be established by the Secretary.”

(12)

in subsection (j)—

(A)

by striking “ public housing agency” and inserting “ eligible entity”;

(B)

by striking “ public housing” before “ units”;

(C)

by striking “ in public housing projects administered by the agency”;

(D)

by inserting “ or coordination” after “ provision”; and

(E)

by striking the last sentence;

(13)

in subsection (k), by striking “ public housing agencies” and inserting “ eligible entities”;

(14)

by striking subsection (n);

(15)

by striking subsection (o);

(16)

by redesignating subsections (l) and (m) as subsections (m) and (n), respectively;

(17)

by inserting after subsection (k) the following:

“(l) Programs for Tenants in Privately Owned Properties With Project-Based Assistance.—

“(1) Voluntary availability of fss program.—The owner of a privately owned property may voluntarily make a Family Self-Sufficiency program available to the tenants of such property in accordance with procedures established by the Secretary. Such procedures shall permit the owner to enter into a cooperative agreement with a local public housing agency that administers a Family Self-Sufficiency program or, at the owner’s option, operate a Family Self-Sufficiency program on its own or in partnership with another owner. An owner, who voluntarily makes a Family Self-Sufficiency program available pursuant to this subsection, may access funding from any residual receipt accounts for the property to hire a family self-sufficiency coordinator or coordinators for their program.

“(2) Cooperative agreement.—Any cooperative agreement entered into pursuant to paragraph (1) shall require the public housing agency to open its Family Self-Sufficiency program waiting list to any eligible family residing in the owner’s property who resides in a unit assisted under project-based rental assistance.

“(3) Treatment of families assisted under this subsection.—A public housing agency that enters into a cooperative agreement pursuant to paragraph (1) may count any family participating in its Family Self-Sufficiency program as a result of such agreement as part of the calculation of the award under subsection (i).

“(4) Escrow.—

“(A) Cooperative agreement.—A cooperative agreement entered into pursuant to paragraph (1) shall provide for the calculation and tracking of the escrow for participating residents and for the owner to make available, upon request of the public housing agency, escrow for participating residents, in accordance with paragraphs (2) and (3) of subsection (e), residing in units assisted under section 8.

“(B) Calculation and tracking by owner.—The owner of a privately owned property who voluntarily makes a Family Self-Sufficiency program available pursuant to paragraph (1) shall calculate and track the escrow for participating residents and make escrow for participating residents available in accordance with paragraphs (2) and (3) of subsection (e).

“(5) Exception.—This subsection shall not apply to properties assisted under section 8(o)(13).

“(6) Suspension of enrollment.—In any year, the Secretary may suspend the enrollment of new families in Family Self-Sufficiency programs under this subsection based on a determination that insufficient funding is available for this purpose.”

(18)

in subsection (m), as so redesignated—

(A)

in paragraph (1)—

(i)

in the first sentence, by striking “ Each public housing agency” and inserting “ Each eligible entity”;

(ii)

in the second sentence, by striking “ The report shall include” and inserting “ The contents of the report shall include”; and

(iii)

in subparagraph (D)—

(I)

by striking “ public housing agency” and inserting “ eligible entity”; and

(II)

by striking “ local”; and

(B)

in paragraph (2), by inserting “ and describing any additional research needs of the Secretary to evaluate the effectiveness of the program” after “ under paragraph (1)”;

(19)

in subsection (n), as so redesignated, by striking “ may” and inserting “ shall”; and

(20)

by adding at the end the following:

“(o) Definitions.—In this section:

“(1) Eligible entity.—The term ‘eligible entity’ means an entity that meets the requirements under subsection (c)(2) to administer a Family Self-Sufficiency program under this section.

“(2) Eligible family.—The term ‘eligible family’ means a family that meets the requirements under subsection (c)(1) to participate in the Family Self-Sufficiency program under this section.

“(3) Participating family.—The term ‘participating family’ means an eligible family that is participating in the Family Self-Sufficiency program under this section.”

(b)

Effective Date.— Not later than 360 days after the date of enactment of this Act, the Secretary of Housing and Urban Development shall issue regulations to implement this section and any amendments made by this section, and this section and any amendments made by this section shall take effect upon such issuance.

SEC. 307. Property Assessed Clean Energy Financing.

Section 129C(b)(3) of the Truth in Lending Act (15 U.S.C. 1639c(b)(3)) is amended by adding at the end the following:

“(C) Consideration of underwriting requirements for property assessed clean energy financing.—

“(i) Definition.—In this subparagraph, the term ‘Property Assessed Clean Energy financing’ means financing to cover the costs of home improvements that results in a tax assessment on the real property of the consumer.

“(ii) Regulations.—The Bureau shall prescribe regulations that carry out the purposes of subsection (a) and apply section 130 with respect to violations under subsection (a) of this section with respect to Property Assessed Clean Energy financing, which shall account for the unique nature of Property Assessed Clean Energy financing.

“(iii) Collection of information and consultation.—In prescribing the regulations under this subparagraph, the Bureau—

“(I) may collect such information and data that the Bureau determines is necessary; and

“(II) shall consult with State and local governments and bond-issuing authorities.”

SEC. 308. Gao Report on Consumer Reporting Agencies.

(a)

Definitions.— In this section, the terms “consumer”, “consumer report”, and “consumer reporting agency” have the meanings given those terms in section 603 of the Fair Credit Reporting Act (15 U.S.C. 1681a).

(b)

Report.— Not later than 1 year after the date of enactment of this Act, the Comptroller General of the United States shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a comprehensive report that includes—

(1)

a review of the current legal and regulatory structure for consumer reporting agencies and an analysis of any gaps in that structure, including, in particular, the rulemaking, supervisory, and enforcement authority of State and Federal agencies under the Fair Credit Reporting Act (15 U.S.C. 1681 et seq.), the Gramm-Leach-Bliley Act (Public Law 106–102; 113 Stat. 1338), and any other relevant statutes;

(2)

a review of the process by which consumers can appeal and expunge errors on their consumer reports;

(3)

a review of the causes of consumer reporting errors;

(4)

a review of the responsibilities of data furnishers to ensure that accurate information is initially reported to consumer reporting agencies and to ensure that such information continues to be accurate;

(5)

a review of data security relating to consumer reporting agencies and their efforts to safeguard consumer data;

(6)

a review of who has access to, and may use, consumer reports;

(7)

a review of who has control or ownership of a consumer’s credit data;

(8)

an analysis of—

(A)

which Federal and State regulatory agencies supervise and enforce laws relating to how consumer reporting agencies protect consumer data; and

(B)

all laws relating to data security applicable to consumer reporting agencies; and

(9)

recommendations to Congress on how to improve the consumer reporting system, including legislative, regulatory, and industry-specific recommendations.

SEC. 309. Protecting Veterans from Predatory Lending.

(a)

Protecting Veterans From Predatory Lending.—

(1)

In general.— Subchapter I of chapter 37 of title 38, United States Code, is amended by adding at the end the following new section:

“§ 3709. Refinancing of housing loans

“(a) Fee Recoupment.—Except as provided in subsection (d) and notwithstanding section 3703 of this title or any other provision of law, a loan to a veteran for a purpose specified in section 3710 of this title that is being refinanced may not be guaranteed or insured under this chapter unless—

“(1) the issuer of the refinanced loan provides the Secretary with a certification of the recoupment period for fees, closing costs, and any expenses (other than taxes, amounts held in escrow, and fees paid under this chapter) that would be incurred by the borrower in the refinancing of the loan;

“(2) all of the fees and incurred costs are scheduled to be recouped on or before the date that is 36 months after the date of loan issuance; and

“(3) the recoupment is calculated through lower regular monthly payments (other than taxes, amounts held in escrow, and fees paid under this chapter) as a result of the refinanced loan.

“(b) Net Tangible Benefit Test.—Except as provided in subsection (d) and notwithstanding section 3703 of this title or any other provision of law, a loan to a veteran for a purpose specified in section 3710 of this title that is refinanced may not be guaranteed or insured under this chapter unless—

“(1) the issuer of the refinanced loan provides the borrower with a net tangible benefit test;

“(2) in a case in which the original loan had a fixed rate mortgage interest rate and the refinanced loan will have a fixed rate mortgage interest rate, the refinanced loan has a mortgage interest rate that is not less than 50 basis points less than the previous loan;

“(3) in a case in which the original loan had a fixed rate mortgage interest rate and the refinanced loan will have an adjustable rate mortgage interest rate, the refinanced loan has a mortgage interest rate that is not less than 200 basis points less than the previous loan; and

“(4) the lower interest rate is not produced solely from discount points, unless—

“(A) such points are paid at closing; and

“(B) such points are not added to the principal loan amount, unless—

“(i) for discount point amounts that are less than or equal to one discount point, the resulting loan balance after any fees and expenses allows the property with respect to which the loan was issued to maintain a loan to value ratio of 100 percent or less; and

“(ii) for discount point amounts that are greater than one discount point, the resulting loan balance after any fees and expenses allows the property with respect to which the loan was issued to maintain a loan to value ratio of 90 percent or less.

“(c) Loan Seasoning.—Except as provided in subsection (d) and notwithstanding section 3703 of this title or any other provision of law, a loan to a veteran for a purpose specified in section 3710 of this title that is refinanced may not be guaranteed or insured under this chapter until the date that is the later of—

“(1) the date that is 210 days after the date on which the first monthly payment is made on the loan; and

“(2) the date on which the sixth monthly payment is made on the loan.

“(d) Cash-out Refinances.—

(1) Subsections (a) through (c) shall not apply in a case of a loan refinancing in which the amount of the principal for the new loan to be guaranteed or insured under this chapter is larger than the payoff amount of the refinanced loan.

“(2) Not later than 180 days after the date of the enactment of this section, the Secretary shall promulgate such rules as the Secretary considers appropriate with respect to refinancing described in paragraph (1) to ensure that such refinancing is in the financial interest of the borrower, including rules relating to recoupment, seasoning, and net tangible benefits.”

(2)

Regulations.—

(A)

In general.— In prescribing any regulation to carry out section 3709 of title 38, United States Code, as added by paragraph (1), the Secretary of Veterans Affairs may waive the requirements of sections 551 through 559 of title 5, United States Code, if—

(i)

the Secretary determines that urgent or compelling circumstances make compliance with such requirements impracticable or contrary to the public interest;

(ii)

the Secretary submits to the Committee on Veterans’ Affairs of the Senate and the Committee on Veterans’ Affairs of the House of Representatives, and publishes in the Federal Register, notice of such waiver, including a description of the determination made under clause (i); and

(iii)

a period of 10 days elapses following the notification under clause (ii).

(B)

Public notice and comment.— If a regulation prescribed pursuant to a waiver made under subparagraph (A) is in effect for a period exceeding 1 year, the Secretary shall provide the public an opportunity for notice and comment regarding such regulation.

(C)

Effective date.— This paragraph shall take effect on the date of the enactment of this Act.

(D)

Termination date.— The authorities under this paragraph shall terminate on the date that is 1 year after the date of the enactment of this Act.

(3)

Report on cash-out refinances.—

(A)

In general.— Not later than 1 year after the date of the enactment of this Act, the Secretary shall, in consultation with the President of the Ginnie Mae, submit to Congress a report on refinancing—

(i)

of loans—

(I)

made to veterans for purposes specified in section 3710 of title 38, United States Code; and

(II)

that were guaranteed or insured under chapter 37 of such title; and

(ii)

in which the amount of the principal for the new loan to be guaranteed or insured under such chapter is larger than the payoff amount of the refinanced loan.

(B)

Contents.— The report required by subparagraph (A) shall include the following:

(i)

An assessment of whether additional requirements, including a net tangible benefit test, fee recoupment period, and loan seasoning requirement, are necessary to ensure that the refinancing described in subparagraph (A) is in the financial interest of the borrower.

(ii)

Such recommendations as the Secretary may have for additional legislative or administrative action to ensure that refinancing described in subparagraph (A) is carried out in the financial interest of the borrower.

(4)

Clerical amendment.— The table of sections at the beginning of chapter 37 of title 38, United States Code, is amended by inserting after the item relating to section 3709 the following new item:

“3709. Refinancing of housing loans.”.

(b)

Loan Seasoning for Ginnie Mae Mortgage-backed Securities.— Section 306(g)(1) of the National Housing Act (12 U.S.C. 1721(g)(1)) is amended by inserting “ The Association may not guarantee the timely payment of principal and interest on a security that is backed by a mortgage insured or guaranteed under chapter 37 of title 38, United States Code, and that was refinanced until the later of the date that is 210 days after the date on which the first monthly payment is made on the mortgage being refinanced and the date on which 6 full monthly payments have been made on the mortgage being refinanced.” after “ Act of 1992.”.

(c)

Report on Liquidity of the Department of Veterans Affairs Housing Loan Program.—

(1)

Report.— Not later than 1 year after the date of the enactment of this Act, the Secretary of Housing and Urban Development and the President of the Ginnie Mae shall submit to the appropriate committees of Congress a report on the liquidity of the housing loan program under chapter 37 of title 38, United States Code, in the secondary mortgage market, which shall—

(A)

assess the loans provided under that chapter that collateralize mortgage-backed securities that are guaranteed by Ginnie Mae; and

(B)

include recommendations for actions that Ginnie Mae should take to ensure that the liquidity of that housing loan program is maintained.

(2)

Definitions.— In this subsection:

(A)

Appropriate committees of congress.— The term “appropriate committees of Congress” means—

(i)

the Committee on Veterans’ Affairs and the Committee on Banking, Housing, and Urban Affairs of the Senate; and

(ii)

the Committee on Veterans’ Affairs and the Committee on Financial Services of the House of Representatives.

(B)

Ginnie mae.— The term “Ginnie Mae” means the Government National Mortgage Association.

(d)

Annual Report on Document Disclosure and Consumer Education.— Not less frequently than once each year, the Secretary of Veterans Affairs shall issue a publicly available report that—

(1)

examines, with respect to loans provided to veterans under chapter 37 of title 38, United States Code—

(A)

the refinancing of fixed-rate mortgage loans to adjustable rate mortgage loans;

(B)

whether veterans are informed of the risks and disclosures associated with that refinancing; and

(C)

whether advertising materials for that refinancing are clear and do not contain misleading statements or assertions; and

(2)

includes findings based on any complaints received by veterans and on an ongoing assessment of the refinancing market by the Secretary.

SEC. 310. Credit Score Competition.

(a)

Use of Credit Scores by Fannie Mae in Purchasing Residential Mortgages.— Section 302(b) of the Federal National Mortgage Association Charter Act (12 U.S.C. 1717(b)) is amended by adding at the end the following:

“(7)

(A) Definitions.—In this paragraph—

“(i) the term ‘credit score’ means a numerical value or a categorization created by a third party derived from a statistical tool or modeling system used by a person who makes or arranges a loan to predict the likelihood of certain credit behaviors, including default; and

“(ii) the term ‘residential mortgage’ has the meaning given the term in section 302 of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1451).

“(B) Use of Credit Scores.—The corporation shall condition purchase of a residential mortgage by the corporation under this subsection on the provision of a credit score for the borrower only if—

“(i) the credit score is derived from any credit scoring model that has been validated and approved by the corporation under this paragraph; and

“(ii) the corporation provides for the use of the credit score by all of the automated underwriting systems of the corporation and any other procedures and systems used by the corporation to purchase residential mortgages that use a credit score.

“(C) Validation and Approval Process.—The corporation shall establish a validation and approval process for the use of credit score models, under which the corporation may not validate and approve a credit score model unless the credit score model—

“(i) satisfies minimum requirements of integrity, reliability, and accuracy;

“(ii) has a historical record of measuring and predicting default rates and other credit behaviors;

“(iii) is consistent with the safe and sound operation of the corporation;

“(iv) complies with any standards and criteria established by the Director of the Federal Housing Finance Agency under section 1328(1) of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992; and

“(v) satisfies any other requirements, as determined by the corporation.

“(D) Replacement of Credit Score Model.—If the corporation has validated and approved 1 or more credit score models under subparagraph (C) and the corporation validates and approves an additional credit score model, the corporation may determine that—

“(i) the additional credit score model has replaced the credit score model or credit score models previously validated and approved; and

“(ii) the credit score model or credit score models previously validated and approved shall no longer be considered validated and approved for the purposes of subparagraph (B).

“(E) Public Disclosure.—Upon establishing the validation and approval process required under subparagraph (C), the corporation shall make publicly available a description of the validation and approval process.

“(F) Application.—Not later than 30 days after the effective date of this paragraph, the corporation shall solicit applications from developers of credit scoring models for the validation and approval of those models under the process required under subparagraph (C).

“(G) Timeframe for Determination; Notice.—

“(i) In general.—The corporation shall make a determination with respect to any application submitted under subparagraph (F), and provide notice of that determination to the applicant, before a date established by the corporation that is not later than 180 days after the date on which an application is submitted to the corporation.

“(ii) Extensions.—The Director of the Federal Housing Finance Agency may authorize not more than 2 extensions of the date established under clause (i), each of which shall not exceed 30 days, upon a written request and a showing of good cause by the corporation.

“(iii) Status notice.—The corporation shall provide notice to an applicant regarding the status of an application submitted under subparagraph (F) not later than 60 days after the date on which the application was submitted to the corporation.

“(iv) Reasons for disapproval.—If an application submitted under subparagraph (F) is disapproved, the corporation shall provide to the applicant the reasons for the disapproval not later than 30 days after a determination is made under this subparagraph.

“(H) Authority of Director.—If the corporation elects to use a credit score model under this paragraph, the Director of the Federal Housing Finance Agency shall require the corporation to periodically review the validation and approval process required under subparagraph (C) as the Director determines necessary to ensure that the process remains appropriate and adequate and complies with any standards and criteria established pursuant to section 1328(1) of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992.

“(I) Extension.—If, as of the effective date of this paragraph, a credit score model has not been approved under subparagraph (C), the corporation may use a credit score model that was in use before the effective date of this paragraph, if necessary to prevent substantial market disruptions, until the earlier of—

“(i) the date on which a credit score model is validated and approved under subparagraph (C); or

“(ii) the date that is 2 years after the effective date of this paragraph.”

(b)

Use of Credit Scores by Freddie Mac in Purchasing Residential Mortgages.— Section 305 of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1454) is amended by adding at the end the following:

“(d)

(1) Definition.—In this subsection, the term ‘credit score’ means a numerical value or a categorization created by a third party derived from a statistical tool or modeling system used by a person who makes or arranges a loan to predict the likelihood of certain credit behaviors, including default.

“(2) Use of Credit Scores.—The Corporation shall condition purchase of a residential mortgage by the Corporation under this section on the provision of a credit score for the borrower only if—

“(A) the credit score is derived from any credit scoring model that has been validated and approved by the Corporation under this subsection; and

“(B) the Corporation provides for the use of the credit score by all of the automated underwriting systems of the Corporation and any other procedures and systems used by the Corporation to purchase residential mortgages that use a credit score.

“(3) Validation and Approval Process.—The Corporation shall establish a validation and approval process for the use of credit score models, under which the Corporation may not validate and approve a credit score model unless the credit score model—

“(A) satisfies minimum requirements of integrity, reliability, and accuracy;

“(B) has a historical record of measuring and predicting default rates and other credit behaviors;

“(C) is consistent with the safe and sound operation of the corporation;

“(D) complies with any standards and criteria established by the Director of the Federal Housing Finance Agency under section 1328(1) of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992; and

“(E) satisfies any other requirements, as determined by the Corporation.

“(4) Replacement of Credit Score Model.—If the Corporation has validated and approved 1 or more credit score models under paragraph (3) and the Corporation validates and approves an additional credit score model, the Corporation may determine that—

“(A) the additional credit score model has replaced the credit score model or credit score models previously validated and approved; and

“(B) the credit score model or credit score models previously validated and approved shall no longer be considered validated and approved for the purposes of paragraph (2).

“(5) Public Disclosure.—Upon establishing the validation and approval process required under paragraph (3), the Corporation shall make publicly available a description of the validation and approval process.

“(6) Application.—Not later than 30 days after the effective date of this subsection, the Corporation shall solicit applications from developers of credit scoring models for the validation and approval of those models under the process required under paragraph (3).

“(7) Timeframe for Determination; Notice.—

“(A) In general.—The Corporation shall make a determination with respect to any application submitted under paragraph (6), and provide notice of that determination to the applicant, before a date established by the Corporation that is not later than 180 days after the date on which an application is submitted to the Corporation.

“(B) Extensions.—The Director of the Federal Housing Finance Agency may authorize not more than 2 extensions of the date established under subparagraph (A), each of which shall not exceed 30 days, upon a written request and a showing of good cause by the Corporation.

“(C) Status notice.—The Corporation shall provide notice to an applicant regarding the status of an application submitted under paragraph (6) not later than 60 days after the date on which the application was submitted to the Corporation.

“(D) Reasons for disapproval.—If an application submitted under paragraph (6) is disapproved, the Corporation shall provide to the applicant the reasons for the disapproval not later than 30 days after a determination is made under this paragraph.

“(8) Authority of Director.—If the Corporation elects to use a credit score under this subsection, the Director of the Federal Housing Finance Agency shall require the Corporation to periodically review the validation and approval process required under paragraph (3) as the Director determines necessary to ensure that the process remains appropriate and adequate and complies with any standards and criteria established pursuant to section 1328(1) of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992.

“(9) Extension.—If, as of the effective date of this subsection, a credit score model has not been approved under paragraph (3), the Corporation may use a credit score model that was in use before the effective date of this subsection, if necessary to prevent substantial market disruptions, until the earlier of—

“(A) the date on which a credit score model is validated and approved under paragraph (3); or

“(B) the date that is 2 years after the effective date of this subsection.”

(c)

Authority of the Director.— Subpart A of part 2 of subtitle A of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4541 et seq.) is amended by adding at the end the following:

“SEC. 1328. REGULATIONS FOR USE OF CREDIT SCORES.

“The Director shall—

“(1) by regulation, establish standards and criteria for any process used by an enterprise to validate and approve credit scoring models pursuant to section 302(b)(7) of the Federal National Mortgage Association Charter Act (12 U.S.C. 1717(b)(7)) and section 305(d) of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1454(d)); and

“(2) ensure that any credit scoring model that is validated and approved by an enterprise under section 302(b)(7) (12 U.S.C. 1717(b)(7)) of the Federal National Mortgage Association Charter Act or section 305(d) of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1454(d)) meets the requirements of clauses (i), (ii), and (iii) of section 302(b)(7)(C) of the Federal National Mortgage Association Charter Act and subparagraphs (A), (B), and (C) of section 305(d)(3) of the Federal Home Loan Mortgage Corporation Act, respectively.”

(d)

Effective Date.— The amendments made by subsections (a) and (b) shall take effect on the date that is 180 days after the date of enactment of this Act.

SEC. 311. Gao Report on Puerto Rico Foreclosures.

Not earlier than 1 year after the date of enactment of this Act, the Comptroller General of the United States shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report on foreclosures in the Commonwealth of Puerto Rico, including—

(1)

the rate of foreclosures in the Commonwealth of Puerto Rico before and after Hurricane Maria;

(2)

the rate of return for housing developers in the Commonwealth of Puerto Rico before and after Hurricane Maria;

(3)

the rate of delinquency in the Commonwealth of Puerto Rico before and after Hurricane Maria;

(4)

the rate of homeownership in the Commonwealth of Puerto Rico before and after Hurricane Maria; and

(5)

the rate of defaults on federally insured mortgages in the Commonwealth of Puerto Rico before and after Hurricane Maria.

SEC. 312. Report on Children’s Lead-Based Paint Hazard Prevention and Abatement.

(a)

Definitions.— In this section—

(1)

the term “Department” means the Department of Housing and Urban Development; and

(2)

the term “public housing agency” has the meaning given the term in section 3(b) of the United States Housing Act of 1937 (42 U.S.C. 1437a(b)).

(b)

Report.— Not later than 1 year after the date of enactment of this Act, the Secretary of Housing and Urban Development shall submit to Congress a report that includes—

(1)

an overview of existing policies and enforcement of the Department, including public outreach, relating to lead-based paint hazard prevention and abatement;

(2)

recommendations and best practices for the Department, public housing agencies, and landlords for improving lead-based paint hazard prevention standards and Federal lead prevention and abatement policies to protect the environmental health and safety of children, including within housing receiving assistance from or occupied by families receiving housing assistance from the Department; and

(3)

recommendations for legislation to improve lead-based paint hazard prevention and abatement.

SEC. 313. Foreclosure Relief and Extension for Servicemembers.

Section 710(d) of the Honoring America’s Veterans and Caring for Camp Lejeune Families Act of 2012 (Public Law 112–154; 50 U.S.C. 3953 note) is amended by striking paragraphs (1) and (3).

Title III — Protections for Veterans, Consumers, and Homeowners