I

106TH CONGRESS

2D SESSION H. R. 4893

To enhance the availability of capital and credit for all citizens and communities, to ensure that community reinvestment keeps pace as banks,

securities firms, and other financial service providers become affiliates

as a result of the enactment of the Gramm-Leach-Bliley Act, and for

other purposes.

IN THE HOUSE OF REPRESENTATIVES

JULY 19, 2000

Mr. BARRETT of Wisconsin (for himself, Mr. GUTIERREZ, Mr. COYNE, Ms.

BALDWIN, Ms. CARSON, Mr. FRANK of Massachusetts, Mr. BROWN of

Ohio, Mr. LIPINSKI, Mr. RUSH, Mr. HINCHEY, Mr. DOYLE, Mr. BONIOR,

Mr. BLAGOJEVICH, Mr. OWENS, Mrs. MEEK of Florida, Mr. FILNER, Mr.

DAVIS of Illinois, Ms. JACKSON-LEE of Texas, Ms. MCKINNEY, Mr.

BRADY of Pennsylvania, Ms. SCHAKOWSKY, Ms. STABENOW, Mr.

CAPUANO, Mr. SANDERS, Mrs. JONES of Ohio, Ms. NORTON, Mr. TOWNS,

and Mr. CONYERS) introduced the following bill; which was referred to

the Committee on Banking and Financial Services, and in addition to the

Committee on Commerce, for a period to be subsequently determined by

the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To enhance the availability of capital and credit for all citizens and communities, to ensure that community reinvestment keeps pace as banks, securities firms, and other

financial service providers become affiliates as a result

of the enactment of the Gramm-Leach-Bliley Act, and

for other purposes.
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1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Community Reinvestment Modernization Act of 2000’’.

6 (b) TABLE OF CONTENTS.—The table of contents for

7 this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Findings.

Sec. 3. Purposes.

TITLE I—MODERNIZATION OF COMMUNITY REINVESTMENT ACT

OF 1977 AND COMMUNITY SERVICE OBLIGATIONS.

Sec. 101. Extension of community reinvestment obligations within a financial

holding company.

Sec. 102. Provisions relating to improved responsiveness of insured depository

institutions to Community Reinvestment Act of 1977.

Sec. 103. Reduction of CRA rating due to predatory lending and other negative

credit practices.

Sec. 104. Responsiveness to community needs for securities and investment

services.

Sec. 105. Responsiveness to community needs for mortgages and mortgage related services by mortgage banks.

Sec. 106. Responsiveness to community needs for insurance services.

Sec. 107. Satisfactory ratings required by securities company, mortgage bank,

and insurance company affiliates of financial holding companies.

TITLE II—DATA DISCLOSURE REQUIREMENTS

Subtitle A—Disclosure of Insurance Availability and Insurer Investment

Information

Sec. 201. Short title.

Sec. 202. Establishment of general requirements to submit information.

Sec. 203. Reporting of noncommercial insurance information.

Sec. 204. Reporting of rural insurance information.

Sec. 205. Waiver of reporting requirements.

Sec. 206. Reporting by private mortgage insurers.

Sec. 207. Reporting of information regarding investments by insurers.

Sec. 208. Submission of information to Secretary and maintenance of information.

Sec. 209. Availability and access system.

Sec. 210. Designations.

Sec. 211. Enforcement.

Sec. 212. Exemption and relation to State laws.

Sec. 213. Regulations.
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Sec. 214. Definitions.

Sec. 215. Effective date.

Subtitle B—Improvements in Other Data Disclosure Requirements

Sec. 221. Improve small business and agriculture lending data disclosure.

Sec. 222. Maintenance and disclosure of information by the Financial Institutions Examination Counsel.

TITLE III—REGULATORY AND STRUCTURAL REFORMS

Sec. 301. Antiredlining requirement for financial holding companies.

Sec. 302. Notice and public comment required before establishing a financial

holding company.

Sec. 303. Public meetings for bank acquisitions and mergers.

Sec. 304. CRA examination schedule for small banks.

Sec. 305. CRA sunshine requirements.

Sec. 306. Continuing community reinvestment requirement for financial holding

companies.

Sec. 307. Changes in reporting requirements under the Home Mortgage Disclosure Act of 1975.

1 SEC. 2. FINDINGS.

2 The Congress hereby finds as follows:

3 (1) It is necessary to increase homeownership

4 and small business ownership for low- and moderate5 income borrowers and persons of color.

6 (2) The United States has an overall home7 ownership rate of 66.7 percent, while Hispanic and

8 African-American homeownership rates are 46.2 per9 cent and 46.9 percent respectively.

10 (3) The homeownership rate in central cities is

11 50.3 percent, compared to 73.5 percent for the sub12 urbs.

13 (4) It is necessary to close the wealth gap in

14 the United States and to increase access to insur15 ance products.
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1 (5) In 1998, the median net worth for His2 panic, African-American, Asian, and other minority

3 families was $16,400, which was 17.3 percent of the

4 median net worth of $94,900 for nonhispanic white

5 families.

6 (6) Families earning $10,000 to $25,000 had a

7 median net worth of $24,800 in 1998 but $31,000

8 in 1995.

9 (7) Research conducted by the chief economist

10 of the National Association of Insurance Commis11 sioners found that after controlling for risk of loss,

12 a 10 percentage point increase in the number of mi13 norities in a zip code is associated with a 2 percent14 age point increase in the number of ‘‘FAIR plans’’,

15 which are government-sponsored insurance plans of

16 last resort for those who cannot obtain insurance in

17 the private market.

18 (8) In order to increase access to credit, wealth

19 and insurance, it is necessary to modernize the Com20 munity Reinvestment Act of 1977 to reflect shifting

21 trends in the financial services industry.

22 (9) Currently, about 40 percent of the assets in

23 the financial industry reside in bank and thrifts and

24 are covered by the Community Reinvestment Act of
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1 1977, down from about 60 percent in the early

2 1980s.

3 SEC. 3. PURPOSES.

4 The purposes of this Act are as follows:

5 (1) To enhance the availability of financial serv6 ices to citizens of all economic circumstances and in

7 all geographic areas.

8 (2) To enhance the ability of financial institu9 tions to meet the capital and credit needs of all citi10 zens and communities, including underserved com11 munities and populations.

12 (3) To ensure that community reinvestment

13 keeps pace with the affiliation of banks, securities

14 firms, and other financial service providers, as pro15 vided by the Gramm-Leach-Bliley Act.

16 TITLE I—MODERNIZATION OF

17 COMMUNITY REINVESTMENT

18 ACT OF 1977 AND COMMUNITY

19 SERVICE OBLIGATIONS.

20 SEC. 101. EXTENSION OF COMMUNITY REINVESTMENT OB21 LIGATIONS WITHIN A FINANCIAL HOLDING

22 COMPANY.

23 Section 4(l) of the Bank Holding Company Act of

24 1956 (12 U.S.C. 1843(l)) is amended by adding at the

25 end the following new paragraph:
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1 ‘‘(4) COMMUNITY NEEDS.—

2 ‘‘(A) IN GENERAL.—All nonbank affiliates

3 of bank holding companies that engage in lend4 ing or offer banking products or services shall

5 be subject to the Community Reinvestment Act

6 of 1977 in accordance with this paragraph and

7 in the same manner as a regulated financial in8 stitution (as defined in such Act) and the

9 record of any such affiliate in meeting commu10 nity credit, investment, and consumer needs

11 shall be taken into account by the Federal regu12 latory agency with jurisdiction over the affili13 ate’s bank holding company in the course of re14 viewing the activities of the bank holding com15 pany or any application by such affiliate.

16 ‘‘(B) BANKING PRODUCTS AND SERVICES

17 DEFINED.—For purposes of this paragraph, the

18 term ‘banking products and services’ includes—

19 ‘‘(i) insured deposits (as defined in

20 section 3 of the Federal Deposit Insurance

21 Act) and related deposit services;

22 ‘‘(ii) consumer loans and extensions of

23 credit and the servicing such loans and ex24 tensions of credit;
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1 ‘‘(iii) loans to purchase, refinance,

2 construct, improve, or repair domestic resi3 dential housing or manufactured housing,

4 including single-family and multifamily

5 residential housing loans and home-equity

6 loans, and the servicing of such loans;

7 ‘‘(iv) small business and commercial

8 loans and the servicing of such loans; and

9 ‘‘(v) checking accounts, savings ac10 counts, and related accounts or instru11 ments, including accounts from which the

12 owner may make withdrawals by negotiable

13 or transferable instruments for the purpose

14 of making payments to third parties.’’.

15 SEC. 102. PROVISIONS RELATING TO IMPROVED RESPON16 SIVENESS OF INSURED DEPOSITORY INSTITU17 TIONS TO COMMUNITY REINVESTMENT ACT

18 OF 1977.

19 (a) RATING REQUIRED FOR EACH STATE, METRO20 POLITAN AREA, AND SERVICE AREA.—Section 807(b)(1)

21 of the Community Reinvestment Act of 1977 (12 U.S.C.

22 2906(b)(1)) is amended by striking subparagraph (B) and

23 inserting the following new subparagraphs to read as fol24 lows:
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1 ‘‘(B) INITIAL SEPARATE EVALUATION AND

2 RATING FOR STATE, METROPOLITAN, OTHER

3 SERVICE AREAS REQUIRED.—The information

4 required by clauses (i) and (ii) of subparagraph

5 (A) with respect to any regulated financial in6 stitution shall be presented separately, and an

7 initial rating shall be determined separately,

8 for—

9 ‘‘(i) each metropolitan area in which

10 the regulated financial institution main11 tains 1 or more domestic branches;

12 ‘‘(ii) each State in which the regulated

13 financial institution maintains 1 or more

14 domestic branches outside of a metropoli15 tan area; and

16 ‘‘(iii) each community in which the

17 regulated financial institution makes more

18 than 0.5 percent of the total amount of

19 loans.

20 ‘‘(C) CONTENT OF SEPARATE EVALUA21 TION.—A written evaluation to which subpara22 graph (B) applies shall describe how the Fed23 eral financial supervisory agency has performed

24 the examination of the regulated financial insti-
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1 tution, including a list of the individual domes2 tic branches examined.

3 ‘‘(D) LOW AND HIGH SATISFACTORY RAT4 INGS.—In assigning ratings under subpara5 graphs (A) and (B), a Federal financial super6 visory agency may assign a rating of ‘low satis7 factory record of meeting community credit

8 needs’ or ‘high satisfactory record of meeting

9 community credit needs’ in lieu of the rating re10 ferred to in paragraph (2)(B).’’.

11 (b) ADDITIONAL PERFORMANCE FACTORS.—Section

12 804(a)(1) of the Community Reinvestment Act of 1977

13 (12 U.S.C. 2903(a)(1)) is amended—

14 (1) by inserting ‘‘and neighborhoods of different

15 racial characteristics’’ after ‘‘low- and moderate-in16 come neighborhoods’’; and

17 (2) By inserting ‘‘, taking into account the in18 stitution’s share of the total amount of credit ex19 tended in neighborhoods of different racial and in20 come characteristics within such community’’ before

21 the semicolon at the end.

22 (c) TECHNICAL AND CONFORMING AMENDMENTS.—

23 (1) Section 807(b)(1)(A)(iii) of the Community

24 Reinvestment Act of 1977 (12 U.S.C.

25 2906(b)(1)(A)(iii)) is amended—
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1 (A) by inserting ‘‘overall’’ after ‘‘the insti2 tution’s’’; and

3 (B) by inserting ‘‘, taking into account

4 each of the initial ratings determined under

5 subparagraph (B) for each State, metropolitan,

6 and service area in which the institution makes

7 more than 0.5 percent of the total amount of

8 loans’’ before the period at the end.

9 (2) Section 807 of the Community Reinvest10 ment Act of 1977 (12 U.S.C. 2906) is amended—

11 (A) by striking subsection (d); and

12 (B) by redesignating subsection (e) as sub13 section (d).

14 SEC. 103. REDUCTION OF CRA RATING DUE TO PREDATORY

15 LENDING AND OTHER NEGATIVE CREDIT

16 PRACTICES.

17 (a) IN GENERAL.—Section 804 of the Community

18 Reinvestment Act of 1977 (12 U.S.C. 2903) is amended

19 by adding at the end the following new subsections:

20 ‘‘(d) TREATMENT OF PREDATORY LENDING AND

21 OTHER DISCRIMINATORY CREDIT PRACTICES.—In the

22 case of a regulated financial institution, or affiliate of any

23 such institution, which the appropriate Federal financial

24 supervisory agency determines has engaged in any credit

25 practice which has a negative impact on a community or
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1 neighborhood, such as predatory lending, or has engaged

2 in any other lending practice or service in a manner which

3 unlawfully discriminates against any person or against

4 low- and moderate-income neighborhoods, the agency—

5 ‘‘(1) may not take any such practice or service

6 into account in assessing the institution’s record of

7 meeting the credit needs of its entire community;

8 and

9 ‘‘(2) shall reduce the rating that would other10 wise obtain under section 807 with respect to such

11 institution after consideration of the extent of such

12 negative or discriminatory practice or service.

13 ‘‘(e) MAINTENANCE OF CERTAIN RECORDS.—For

14 purposes of determining whether a regulated financial in15 stitution engages in any practice or service described in

16 subsection (d), an appropriate Federal financial super17 visory agency may require, by regulation, regulated finan18 cial institutions to maintain records of the terms and con19 ditions of credit extended by the institution or the terms

20 and conditions at which credit was offered even though

21 no credit was extended.’’.

22 SEC. 104. RESPONSIVENESS TO COMMUNITY NEEDS FOR

23 SECURITIES AND INVESTMENT SERVICES.

24 (a) AFFIRMATIVE OBLIGATION.—The purpose of this

25 section is to recognize that each securities company has,
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1 with respect to each community comprising an assessment

2 area of such company, a continuing and affirmative obliga3 tion to meet the need for financial services in such commu4 nities, including the needs of low- and moderate-income

5 neighborhoods and persons of modest means.

6 (b) DEFINITIONS.—For purposes of this section, the

7 following definitions shall apply:

8 (1) ASSESSMENT AREA.—The term ‘‘assessment

9 area’’ means, with respect to a securities company,

10 each community in which such company—

11 (A) maintains a retail office or is rep12 resented by an agent; or

13 (B) has not less than 0.5 percent of the

14 total market in securities.

15 (2) COMMUNITY DEVELOPMENT INVEST16 MENT.—The term ‘‘community development invest17 ment’’ means investment in activities that revitalize

18 and stabilize low- and moderate-income neighbor19 hoods and directly benefit low- and moderate-income

20 individuals, including investment in affordable hous21 ing, community services, small-business development,

22 and economic development.

23 (3) SECURITIES COMPANY.—The term ‘‘securi24 ties company’’ means any person who is—
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1 (A) a broker or dealer that is registered

2 under the Securities Exchange Act of 1934;

3 (B) a registered investment adviser, prop4 erly registered by or on behalf of either the Se5 curities and Exchange Commission, with re6 spect to the investment advisory activities of

7 such investment adviser and activities incidental

8 to such investment advisory activities; or

9 (C) an investment company that is reg10 istered under the Investment Company Act of

11 1940.

12 (c) PROGRAM.—

13 (1) IN GENERAL.—The Securities and Ex14 change Commission, in consultation with the Sec15 retary of the Treasury, shall develop a program to

16 ensure that securities companies meet the obliga17 tions described in subsection (a) and the require18 ments of the program under this subsection.

19 (2) FACTORS TO BE INCLUDED.—

20 (A) CUSTOMER EVALUATION.—The pro21 gram shall include, as appropriate, a method

22 for evaluating a securities company’s record of

23 helping to meet the securities investment needs

24 of its assessment area, including—
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1 (i) the number and distribution of

2 customers throughout the community, in3 cluding low- and moderate-income neigh4 borhoods and the dollar amounts of the in5 vestments made by such customers; and

6 (ii) the extent to which the company

7 has adopted innovative and flexible mar8 keting methods, such as low minimum

9 amounts to open accounts and low trans10 action fees, that facilitate the sale of secu11 rities to low- and moderate-income cus12 tomers.

13 (B) COMMUNITY DEVELOPMENT INVEST14 MENTS.—The program shall include, as appro15 priate, a method for evaluating a securities

16 company’s record of community development in17 vestment in each assessment area, including—

18 (i) the number and dollar amount of

19 community development investments in the

20 assessment area; and

21 (ii) the responsiveness of the securi22 ties company, through community develop23 ment investments, to the credit, capital,

24 and community development needs of the
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1 assessment area, including low- and mod2 erate-income neighborhoods.

3 (C) PERFORMANCE.—The program shall

4 include, as appropriate, a method for evaluating

5 a securities company’s record of providing ac6 cess to securities services in each assessment

7 area, including—

8 (i) the company’s record of opening or

9 closing retail offices in the assessment

10 area;

11 (ii) the extent to which the securities

12 company has adopted effective alternate

13 marketing systems in low- and moderate14 income neighborhoods, such as providing

15 the means for low- and moderate-income

16 individuals to gain electronic access to the

17 company at community centers and similar

18 locations in low- and moderate-income

19 neighborhoods; and

20 (iii) the extent to which the securities

21 company has provided investment edu22 cation and other investment services, such

23 as financial counseling classes, in low- and

24 moderate-income neighborhoods in the as25 sessment area.
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1 (3) RATING.—

2 (A) IN GENERAL.—The program shall pro3 vide for—

4 (i) an evaluation and an initial rating

5 of the performance of each securities com6 pany in meeting the obligation established

7 under subsection (a) in each assessment

8 area of the company; and

9 (ii) an overall rating, based on the ini10 tial ratings pursuant to clause (i) of the

11 overall achievement of the securities com12 pany in meeting such obligation.

13 (B) TREATMENT OF INVESTMENT PRAC14 TICES WITH NEGATIVE IMPACTS.—In the case

15 of any securities company which the Securities

16 and Exchange Commission determines has en17 gaged in securities and investment practices

18 which have a negative impact on any assess19 ment area of the company or has otherwise en20 gaged in any practice or provided any service in

21 a manner which unlawfully discriminates

22 against any person or against low- and mod23 erate-income neighborhoods, the Commission—

24 (i) may not take any such practice

25 into account in assessing the extent to
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1 which such company has met its obligation

2 under subsection (a); and

3 (ii) shall reduce the rating that would

4 otherwise obtain under subparagraph (A)

5 with respect to such company, after consid6 ering the extent of such negative or dis7 criminatory practice or service.’’.

8 (C) MAINTENANCE OF CERTAIN

9 RECORDS.—For purposes of determining wheth10 er a securities company engages in any practice

11 or service described in subparagraph (B), the

12 Securities and Exchange Commission may re13 quire, by regulation, securities companies to

14 maintain records of the terms and conditions at

15 which securities products and services were pro16 vided by the company and the terms and condi17 tions at which such securities products or serv18 ices were offered by the company even though

19 no transaction occurred.

20 (4) CONSIDERATION OF SECURITIES COMPANY

21 RATING.—Whenever the Commission considers an

22 application to the Commission by a securities com23 pany, the Securities and Exchange Commission

24 shall—
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1 (A) take into account the overall rating of

2 the securities company under this subsection;

3 (B) provide opportunity for comment on

4 such rating; and

5 (C) take into account changes in the com6 munity reinvestment performance of such com7 pany since the last overall rating and the likely

8 future community reinvestment performance of

9 such company.

10 (d) RELEASE OF DATA.—Information collected by

11 the Securities and Exchange Commission in connection

12 with the program under subsection (c) shall be made pub13 licly available by the Commission in a format similar to

14 the format for public disclosure of information under the

15 Home Mortgage Disclosure Act of 1975, as determined

16 to be appropriate by the Commission.

17 SEC. 105. RESPONSIVENESS TO COMMUNITY NEEDS FOR

18 MORTGAGES AND MORTGAGE RELATED

19 SERVICES BY MORTGAGE BANKS.

20 (a) AFFIRMATIVE OBLIGATION.—Each mortgage

21 bank shall have, with respect to each community com22 prising an assessment area of such mortgage bank, a con23 tinuing and affirmative obligation to meet the mortgage

24 credit and mortgage service needs of such communities,
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1 including extensions of credit in low- and moderate-income

2 neighborhoods of such communities.

3 (b) DEFINITIONS.—For purposes of this section, the

4 following definitions shall apply:

5 (1) ASSESSMENT AREA.—The term ‘‘assessment

6 area’’ means, with respect to a mortgage bank, each

7 community in which such company—

8 (A) maintains a retail office or is rep9 resented by an agent; or

10 (B) has not less than 0.5 percent of the

11 total market in housing-related loans.

12 (2) COMMUNITY DEVELOPMENT INVEST13 MENT.—The term ‘‘community development invest14 ment’’ means investment in activities that revitalize

15 and stabilize low- and moderate-income neighbor16 hoods and directly benefit low- and moderate-income

17 individuals, including investment in affordable hous18 ing, community services, small-business development,

19 and economic development.

20 (3) MORTGAGE BANK.—The term ‘‘mortgage

21 bank’’ means any lender who does not accept depos22 its (as defined in section 3 of the Federal Deposit

23 Insurance Act) and originates housing-related loans.

24 (4) SECRETARY.—The term ‘‘Secretary’’ means

25 the Secretary of Housing and Urban Development.
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1 (c) PROGRAM.—

2 (1) IN GENERAL.—The Secretary, in consulta3 tion with the Secretary of the Treasury, shall de4 velop a program to ensure that mortgage banks

5 meet the obligations described in subsection (a) and

6 the requirements of the program under this sub7 section.

8 (2) FACTORS TO BE INCLUDED.—

9 (A) CUSTOMER EVALUATION.—The pro10 gram shall include, as appropriate, a method

11 for evaluating a mortgage bank’s record of

12 helping to meet the mortgage credit and mort13 gage service needs of its assessment area,

14 including—

15 (i) the number and distribution of

16 customers throughout the community, in17 cluding low- and moderate-income neigh18 borhoods and the dollar amounts of the

19 mortgage credit extended to such cus20 tomers by the mortgage bank; and

21 (ii) the extent to which the mortgage

22 bank has adopted innovative and flexible

23 marketing methods that facilitate the ex24 tension of mortgage credit on a non-
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1 discriminatory basis to low- and moderate2 income customers.

3 (B) COMMUNITY DEVELOPMENT INVEST4 MENTS.—The program shall include, as appro5 priate, a method for evaluating a mortgage

6 bank’s record of community development invest7 ment in each assessment area, including—

8 (i) the number and dollar amount of

9 community development investments in the

10 assessment area; and

11 (ii) the responsiveness of the mort12 gage bank, through community develop13 ment investments, to the credit, capital,

14 and community development needs of the

15 assessment area, including low- and mod16 erate-income neighborhoods.

17 (C) PERFORMANCE.—The program shall

18 include, as appropriate, a method for evaluating

19 a mortgage bank’s record of providing access to

20 mortgage credit and mortgage services in each

21 assessment area, including—

22 (i) the bank’s record of opening or

23 closing retail offices in the assessment

24 area;
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1 (ii) the extent to which the mortgage

2 bank has adopted effective alternate mar3 keting systems in low- and moderate-in4 come neighborhoods, such as providing the

5 means for low- and moderate-income indi6 viduals to gain electronic access to the

7 mortgage bank at community centers and

8 similar locations in low- and moderate-in9 come neighborhoods;

10 (iii) the extent to which the mortgage

11 bank has provided home purchaser and

12 home owner education and other coun13 seling services, such as financial counseling

14 classes, in low- and moderate-income

15 neighborhoods in the assessment area.

16 (iv) the mortgage bank’s market share

17 in neighborhoods of different racial and in18 come characteristics;

19 (v) the number of applications re20 ceived from and loans made to minorities

21 and low- and moderate-income persons;

22 (vi) a comparison of the rate at which

23 the mortgage bank rejects applications

24 from minority and white applicants; and
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1 (vii) any evidence of illegal discrimina2 tory credit practices, including

3 prescreening, or offering less favorable

4 loan products to applicants of different ra5 cial backgrounds.

6 (3) RATING.—

7 (A) IN GENERAL.—The program shall pro8 vide for—

9 (i) an evaluation and an initial rating

10 of the performance of each mortgage bank

11 in meeting the obligation established under

12 subsection (a) in each assessment area of

13 the bank; and

14 (ii) an overall rating, based on the ini15 tial ratings pursuant to clause (i) of the

16 overall achievement of the mortgage bank

17 in meeting such obligation.

18 (B) TREATMENT OF CREDIT PRACTICES

19 WITH NEGATIVE IMPACTS.—In the case of any

20 mortgage bank which the Secretary determines

21 has engaged in credit practices which have a

22 negative impact on any individuals or any as23 sessment area of the company, such as

24 prescreening or predatory mortgage lending, or

25 has otherwise engaged in any practice or pro-
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1 vided any service in a manner which unlawfully

2 discriminates against any person or against

3 low- and moderate-income neighborhoods, the

4 Commission—

5 (i) may not take any such practice

6 into account in assessing the extent to

7 which such company has met its obligation

8 under subsection (a); and

9 (ii) shall reduce the rating that would

10 otherwise obtain under subparagraph (A)

11 with respect to such company, after consid12 ering the extent of such negative or dis13 criminatory practice or service.

14 (C) MAINTENANCE OF CERTAIN

15 RECORDS.—For purposes of determining wheth16 er a mortgage bank engages in any practice or

17 service described in subparagraph (B), the Sec18 retary may require, by regulation, mortgage

19 banks to maintain records of the terms and

20 conditions at which mortgage loans and other

21 services were provided by the company and the

22 terms and conditions at which such mortgage

23 loans and other products and services were of24 fered by the bank even though no transaction

25 occurred.
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1 (d) CONSIDERATION OF MORTGAGE BANK’S RAT2 ING.—

3 (1) REVIEW OF RATING.—On an annual basis

4 or at such shorter time-period as the Secretary may

5 determine to be appropriate, the Secretary shall—

6 (A) review the overall rating of each mort7 gage bank under this subsection;

8 (B) provide opportunity for comment on

9 such rating; and

10 (C) review changes in the community rein11 vestment performance of such mortgage bank

12 since the last overall rating and the likely fu13 ture community reinvestment performance of

14 such mortgage bank.

15 (2) NOTIFICATION OF UNSATISFACTORY PER16 FORMANCE.—If, in conjunction with a review pursu17 ant to paragraph (1), the Secretary determines that

18 a mortgage bank has failed to meet the bank’s obli19 gations described in subsection (a) and the require20 ments of the program under this subsection or failed

21 to make satisfactory improvements in meeting such

22 obligations and requirements, the Secretary shall no23 tify the mortgage bank of such determination, de24 scribing the conditions giving rise to the notice.
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1 (3) AGREEMENT TO CORRECT CONDITIONS RE2 QUIRED.—Not later than 45 days after the date of

3 receipt by a mortgage bank of a notice given under

4 paragraph (2) (or such additional period as the Sec5 retary may permit), the mortgage bank shall execute

6 an agreement with the Secretary to comply with the

7 obligations and requirements applicable to the mort8 gage bank under this section.

9 (4) SECRETARY MAY IMPOSE LIMITATIONS.—

10 Until the conditions described in a notice to a mort11 gage bank under paragraph (2) are corrected, the

12 Secretary may impose such limitations on the extent

13 to which mortgage loans originated, held, or serviced

14 by such mortgage bank may be acquired by the Fed15 eral Home Mortgage Corporation or the Federal Na16 tional Mortgage Association as the Secretary deter17 mines to be appropriate under the circumstances

18 and consistent with the purposes of this section.

19 (5) FAILURE TO CORRECT.—If the conditions

20 described in a notice to a mortgage bank under

21 paragraph (2) are not corrected within 180 days

22 after the date of receipt by the mortgage bank of a

23 notice under paragraph (2), the Secretary shall pro24 hibit the Federal Home Mortgage Corporation and

25 the Federal National Mortgage Association from ac-
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1 quiring any mortgage loan originated, held, or serv2 iced by such mortgage bank.

3 (6) CONSULTATION.—In taking any action

4 under this subsection, the Secretary shall consult

5 with all relevant Federal and State regulatory agen6 cies and authorities.

7 SEC. 106. RESPONSIVENESS TO COMMUNITY NEEDS FOR IN8 SURANCE SERVICES.

9 (a) AFFIRMATIVE OBLIGATION.—The purpose of this

10 section is to recognize that each insurance company has,

11 with respect to each community comprising an assessment

12 area of such company, a continuing and affirmative obliga13 tion to meet the need for insurance services in such com14 munities, including the needs of low- and moderate-income

15 neighborhoods and persons of modest means.

16 (b) DEFINITIONS.—For purposes of this section, the

17 following definitions shall apply:

18 (1) ASSESSMENT AREA.—The term ‘‘assessment

19 area’’ means, with respect to an insurance company,

20 each community in which such company—

21 (A) maintains a retail office or is rep22 resented by an agent; or

23 (B) has not less than 0.5 percent of the

24 total market in insurance.
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1 (2) COMMUNITY DEVELOPMENT INVEST2 MENT.—The term ‘‘community development invest3 ment’’ means investment in activities that revitalize

4 and stabilize low- and moderate-income neighbor5 hoods and directly benefit low- and moderate-income

6 individuals, including investment in affordable hous7 ing, community services, small-business development,

8 and economic development.

9 (3) INSURANCE COMPANY.—The term ‘‘insur10 ance company’’ includes any person engaged in the

11 business of insurance to the extent of such activities.

12 (4) SECRETARY.—The term ‘‘Secretary’’ means

13 the Secretary of Housing and Urban Development.

14 (c) PROGRAM.—

15 (1) IN GENERAL.—The Secretary, in consulta16 tion with the Secretary of the Treasury, shall de17 velop a program to ensure that insurance companies

18 meet the obligations described in subsection (a) and

19 the requirements of the program under this sub20 section.

21 (2) FACTORS TO BE INCLUDED.—

22 (A) CUSTOMER EVALUATION.—The pro23 gram shall include, as appropriate, a method

24 for evaluating an insurance company’s record of
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•HR 4893 IH

1 helping to meet the insurance needs of its as2 sessment area, including—

3 (i) the number and distribution of

4 customers throughout the community, in5 cluding low- and moderate-income neigh6 borhoods and the dollar amounts of the in7 surance policies held by such customers;

8 and

9 (ii) the extent to which the company

10 has adopted innovative and flexible mar11 keting methods that facilitate the sale of

12 insurance on a nondiscriminatory basis to

13 low- and moderate-income customers.

14 (B) COMMUNITY DEVELOPMENT INVEST15 MENTS.—The program shall include, as appro16 priate, a method for evaluating an insurance

17 company’s record of community development in18 vestment in each assessment area, including—

19 (i) the number and dollar amount of

20 community development investments in the

21 assessment area; and

22 (ii) the responsiveness of the insur23 ance company, through community devel24 opment investments, to the credit, capital,

25 and community development needs of the
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1 assessment area, including low- and mod2 erate-income neighborhoods.

3 (C) PERFORMANCE.—The program shall

4 include, as appropriate, a method for evaluating

5 an insurance company’s record of providing ac6 cess to insurance services in each assessment

7 area, including—

8 (i) the company’s record of opening or

9 closing retail offices or affiliating with

10 agents in the assessment area;

11 (ii) the extent to which the insurance

12 company has adopted effective alternate

13 marketing systems in low- and moderate14 income neighborhoods, such as providing

15 the means for low- and moderate-income

16 individuals to gain electronic access to the

17 company at community centers and similar

18 locations in low- and moderate-income

19 neighborhoods; and

20 (iii) the extent to which the insurance

21 company has provided insurance education

22 and other insurance services, such as fi23 nancial counseling classes, in low- and

24 moderate-income neighborhoods in the as25 sessment area.
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1 (3) RATING.—The program shall provide for—

2 (i) an evaluation and an initial rating

3 of the performance of each insurance com4 pany in meeting the obligation established

5 under subsection (a) in each assessment

6 area of the company; and

7 (ii) an overall rating, based on the ini8 tial ratings pursuant to clause (i) of the

9 overall achievement of the insurance com10 pany in meeting such obligation.

11 (B) TREATMENT OF INSURANCE PRAC12 TICES WITH NEGATIVE IMPACTS.—In the case

13 of any insurance company which the Secretary

14 determines has engaged in practices which have

15 a negative impact on any assessment area of

16 the company or has otherwise engaged in any

17 practice or provided any service in a manner

18 which unlawfully discriminates against any per19 son or against low- and moderate-income neigh20 borhoods, the Commission—

21 (i) may not take any such practice

22 into account in assessing the extent to

23 which such company has met its obligation

24 under subsection (a); and
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•HR 4893 IH

1 (ii) shall reduce the rating that would

2 otherwise obtain under subparagraph (A)

3 with respect to such company after consid4 eration of the extent of such negative or

5 discriminatory practice or service.

6 (C) MAINTENANCE OF CERTAIN

7 RECORDS.—For purposes of determining wheth8 er an insurance company engages in any prac9 tice or service described in subparagraph (B),

10 the Secretary may require, by regulation, insur11 ance companies to maintain records of the

12 terms and conditions at which insurance prod13 ucts and services were provided by the company

14 and the terms and conditions at which such in15 surance products or services were offered by the

16 company even though no transaction occurred.

17 (d) CONSIDERATION OF INSURANCE COMPANY’S

18 RATING.—

19 (1) REVIEW OF RATING.—On an annual basis

20 or at such shorter time-period as the Secretary may

21 determine to be appropriate, the Secretary shall—

22 (A) review the overall rating of each insur23 ance company under this subsection;

24 (B) provide opportunity for comment on

25 such rating; and
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•HR 4893 IH

1 (C) review changes in the community rein2 vestment performance of such insurance com3 pany since the last overall rating and the likely

4 future community reinvestment performance of

5 such insurance company.

6 (2) NOTIFICATION OF UNSATISFACTORY PER7 FORMANCE.—If, in conjunction with a review pursu8 ant to paragraph (1), the Secretary determines that

9 an insurance company has failed to meet the com10 pany’s obligations described in subsection (a) and

11 the requirements of the program under this sub12 section or failed to make satisfactory improvements

13 in meeting such obligations and requirements, the

14 Secretary shall notify the insurance company and

15 each appropriate State insurance regulator of such

16 determination, describing the conditions giving rise

17 to the notice.

18 (3) AGREEMENT TO CORRECT CONDITIONS RE19 QUIRED.—Not later than 45 days after the date of

20 receipt by an insurance company of a notice given

21 under paragraph (2) (or such additional period as

22 the Secretary may permit), the insurance company

23 shall execute an agreement with the Secretary to

24 comply with the obligations and requirements appli25 cable to the insurance company under this section.
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1 (4) SECRETARY MAY IMPOSE LIMITATIONS.—

2 Until the conditions described in a notice to an in3 surance company under paragraph (2) are corrected,

4 the Secretary may impose such limitations on the ex5 tent to which mortgage loans secured by real prop6 erty insured by such insurance company may be ac7 quired by the Federal Home Mortgage Corporation

8 or the Federal National Mortgage Association as the

9 Secretary determines to be appropriate under the

10 circumstances and consistent with the purposes of

11 this section.

12 (5) FAILURE TO CORRECT.—If the conditions

13 described in a notice to a mortgage bank under

14 paragraph (2) are not corrected within 180 days

15 after the date of receipt by the mortgage bank of a

16 notice under paragraph (2), the Secretary shall—

17 (A) prohibit the Federal Home Mortgage

18 Corporation and the Federal National Mortgage

19 Association from acquiring any mortgage loan

20 secured by real property insured by such insur21 ance company;

22 (B) publish notice of such failure to cor23 rect in the Federal Register; and

24 (C) notify each appropriate State insur25 ance regulator of such failure to correct.
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1 (6) CONSULTATION.—In taking any action

2 under this subsection, the Secretary shall consult

3 with all relevant Federal and State regulatory agen4 cies and authorities.

5 SEC. 107. SATISFACTORY RATINGS REQUIRED BY SECURI6 TIES COMPANY, MORTGAGE BANK, AND IN7 SURANCE COMPANY AFFILIATES OF FINAN8 CIAL HOLDING COMPANIES.

9 (a) IN GENERAL.—Section 4(l)(1) of the Bank Hold10 ing Company Act of 1956 (12 U.S.C. 1843(l)(1)) is

11 amended—

12 (1) by striking ‘‘and’’ at the end of subpara13 graph (B);

14 (2) by redesignating subparagraph (C) as sub15 paragraph (F); and

16 (3) by inserting after subparagraph (B) the fol17 lowing new subparagraphs:

18 ‘‘(C) all of the securities company affiliates

19 of the bank holding company have a satisfac20 tory rating of meeting community needs under

21 section 104 of the Community Reinvestment

22 Modernization Act of 2000;

23 ‘‘(D) all of the mortgage bank affiliates of

24 the bank holding company have a satisfactory

25 rating of meeting community needs under sec-
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1 tion 105 of the Community Reinvestment Mod2 ernization Act of 2000;

3 ‘‘(E) all of the insurance company affili4 ates of the bank holding company have a satis5 factory rating of meeting community needs

6 under section 106 of the Community Reinvest7 ment Modernization Act of 2000; and’’.

8 (b) TECHNICAL AND CONFORMING AMENDMENTS.—

9 (1) Section 5(a) of the Bank Holding Company

10 Act of 1956 (12 U.S.C. 1844(a)) is amended by

11 striking ‘‘section 4(l)(1)(C)’’ and inserting ‘‘section

12 4(l)(1)(F)’’.

13 (2) Section 8(c)(3)(A) of the International

14 Banking Act of 1978 (12 U.S.C. 3106(c)(3)(A)) is

15 amended by striking ‘‘section 4(l)(1)(C)’’ and insert16 ing ‘‘section 4(l)(1)(F)’’.

17 TITLE II—DATA DISCLOSURE

18 REQUIREMENTS

19 Subtitle A—Disclosure of Insurance

20 Availability and Insurer Invest21 ment Information

22 SEC. 201. SHORT TITLE.

23 This title may be cited as the ‘‘Insurance Disclosure

24 Act’’.
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1 SEC. 202. ESTABLISHMENT OF GENERAL REQUIREMENTS

2 TO SUBMIT INFORMATION.

3 (a) IN GENERAL.—The Secretary of Housing and

4 Urban Development shall, by regulation, establish require5 ments for insurers to compile and submit information to

6 the Secretary for each annual reporting period, in accord7 ance with this title.

8 (b) CONSULTATION.—In establishing the require9 ments for the submission of information under this title,

10 the Secretary shall consult with Federal agencies having

11 appropriate expertise, the National Association of Insur12 ance Commissioners, State insurance regulators, statis13 tical agents, representatives of small businesses, rep14 resentatives of insurance agents (including minority insur15 ance agents), representatives of property and casualty in16 surers, and community, consumer, and civil rights organi17 zations, as appropriate.

18 SEC. 203. REPORTING OF NONCOMMERCIAL INSURANCE IN19 FORMATION.

20 (a) IN GENERAL.—The requirements established pur21 suant to section 202 to carry out this section shall—

22 (1) be designed to ensure that information is

23 submitted and compiled under this section as may be

24 necessary to permit analysis and comparison of—

25 (A) the availability and affordability of in26 surance coverage and the quality or type of in-
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1 surance coverage, by census tract, including

2 low- and moderate-income neighborhoods, and

3 the race and gender of policyholders; and

4 (B) the location of the principal place of

5 business of insurance agents and the race of

6 such agents, and the location of the principal

7 place of business of insurance agents termi8 nated and the race of such agents, by census

9 tract, including low- and moderate-income

10 neighborhoods; and

11 (2) specify the data elements required to be re12 ported under this section and require uniformity in

13 the definitions of the data elements.

14 (b) INSURERS.—

15 (1) AGGREGATE INFORMATION.—The regula16 tions issued under section 203 shall require that

17 each insurer for a designated line of insurance under

18 subparagraph (A) or (B) of section 210(a)(1) shall

19 compile and submit to the Secretary, for each an20 nual reporting period—

21 (A) the total number of policies issued in

22 such line, total exposures covered by such poli23 cies, and total amount of premiums for such

24 policies, by designated line and by census tract,
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1 including low- and moderate-income neighbor2 hoods, in which the insured risk is located;

3 (B) the total number of cancellations and

4 nonrenewals (expressed in terms of policies or

5 exposures, as determined by the Secretary), by

6 designated line and by census tract, including

7 low- and moderate-income neighborhoods, in

8 which the insured risk is located;

9 (C) the total number and racial character10 istics of—

11 (i) licensed agents of such insurer sell12 ing insurance in the designated line, by

13 census tract, including low- and moderate14 income neighborhoods, in which the agent’s

15 principal place of business is located; and

16 (ii) such agents who were terminated

17 by the insurer, by census tract in which

18 the agent’s principal place of business was

19 located; and

20 (D) for such designated line of insurance,

21 information that will enable the Secretary to as22 sess the aggregate loss experience for the in23 surer, by census tract, including low- and mod24 erate-income neighborhoods, in which the in25 sured risk is located.
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1 (2) SPECIFICATION OF INFORMATION FOR

2 ITEMIZED DISCLOSURE.—

3 (A) IN GENERAL.—The regulations issued

4 under section 202 regarding annual reporting

5 requirements for insurers for a designated line

6 of insurance under subparagraph (A) or (B) of

7 section 210(a)(1) shall, with respect to policies

8 issued under the designated line or exposure

9 units covered by such policies, as determined by

10 the Secretary—

11 (i) specify the data elements that shall

12 be submitted;

13 (ii) provide for the submission of in14 formation on an individual insurer basis;

15 (iii) provide for the submission of the

16 information with the least burden on insur17 ers, particularly small insurers, and insur18 ance agents;

19 (iv) take into account existing statis20 tical reporting systems in the insurance in21 dustry;

22 (v) require reporting by census tract,

23 including low- and moderate-income neigh24 borhoods, in which the insured risk is lo25 cated;
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1 (vi) provide for the submission of in2 formation that—

3 (I) identifies the designated line,

4 and subline or coverage type; and

5 (II) where applicable, distin6 guishes between the type of policy

7 under each such subline or coverage

8 type that provides full replacement

9 cost and all other bases for computing

10 claims, such as actual cash value and

11 fair market value;

12 (vii) provide for the submission of in13 formation that distinguishes policies writ14 ten in a residual market from policies writ15 ten in the voluntary market;

16 (viii) specify—

17 (I) whether information shall be

18 submitted on the basis of policy or ex19 posure unit; and

20 (II) whether information, when

21 submitted, shall be aggregated by like

22 policyholders with like policies, except

23 that the Secretary shall not permit

24 such aggregation if it will adversely
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1 affect the accuracy of the information

2 reported;

3 (ix) in addition to reporting approvals,

4 provide for the submission of information

5 regarding the number of denials, cancella6 tions, and nonrenewals of policies under

7 the designated line by census tract in

8 which the insured risk is located, by race,

9 gender, and income of the policyholder (if

10 known to the insurer), and by whether the

11 policy was issued in a voluntary or residual

12 market; and

13 (x) provide for the submission of in14 formation on the racial characteristics,

15 gender, and income levels of policyholders

16 at the level of detail comparable to that re17 quired by the Home Mortgage Disclosure

18 Act of 1975 (and the regulations issued

19 thereunder).

20 (B) RULES REGARDING OBTAINING RACIAL

21 INFORMATION.—

22 (i) WRITING REQUIREMENT.—The in23 formation specified in subparagraph (A)(x)

24 relating to the racial characteristics of ap25 plicants for, and policyholders of, insur-
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1 ance shall be obtained only in accordance

2 with the procedures for requesting and re3 cording racial information established in

4 Regulation C of the Board of Governors of

5 the Federal Reserve System under the

6 Home Mortgage Disclosure Act of 1975, as

7 in effect on the date of the enactment of

8 this Act.

9 (ii) NOTICE OF VOLUNTARY NATURE

10 OF QUESTION.—Any such written question

11 shall clearly indicate that a response to the

12 question is voluntary on the part of the ap13 plicant or policyholder, but encouraged,

14 and that the information is being re15 quested by the Federal Government to

16 monitor the availability and affordability of

17 insurance.

18 (iii) PROVISION OF INFORMATION BY

19 AGENT OR INSURER.—If an applicant for,

20 or policyholder of, insurance declines to

21 provide such information, the agent or in22 surer for such insurance may provide such

23 information.

24 (3) RULE FOR REPORTING BY INSURERS.—An

25 insurer for a designated line shall submit—
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1 (A) information required under subpara2 graphs (A), (B), and (D) of paragraph (1) and

3 information required pursuant to paragraph

4 (2), for risks insured under such line that are

5 located within each census tract any part of

6 which is located in a State for which the insurer

7 is offering the designated line; and

8 (B) information required under paragraph

9 (1)(C) for agents within such census tracts.

10 SEC. 204. REPORTING OF RURAL INSURANCE INFORMA11 TION.

12 (a) IN GENERAL.—The Secretary shall, by regula13 tion, establish requirements for insurers to annually com14 pile and submit to the Secretary information concerning

15 the availability, affordability, and quality or type of insur16 ance in rural areas and to small businesses.

17 (b) CONTENT.—The regulations under this section

18 shall provide that the information compiled and submitted

19 under this section shall be compiled and submitted on the

20 basis of each census tract in which the insured risks are

21 located.

22 SEC. 205. WAIVER OF REPORTING REQUIREMENTS.

23 (a) WAIVER FOR STATES COLLECTING EQUIVALENT

24 INFORMATION.—
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1 (1) AUTHORITY.—Subject to the requirements

2 under this section, the Secretary shall provide, by

3 regulation, for the waiver of the applicability of the

4 provisions of sections 203 and 204 for each insurer

5 transacting business within a State referred to in

6 paragraph (2), but only with respect to information

7 required to be submitted under such sections that

8 relates to agents or insured risks located in the

9 State.

10 (2) REQUIREMENTS.—The Secretary may make

11 a waiver pursuant to paragraph (1) only with re12 spect to a State that the Secretary determines has

13 in effect a law or other requirement that—

14 (A) requires insurers to submit to the

15 State information that is at least the same or

16 equivalent to the information that is required to

17 be submitted to the Secretary pursuant to sec18 tions 203 and 204;

19 (B) provides for adequate enforcement of

20 such law or other requirements; and

21 (C) provides for the same annual reporting

22 period used by the Secretary under this title

23 and for submission of the information to the

24 Secretary in a timely fashion, as determined by

25 the Secretary.
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1 (3) DURATION.—A waiver pursuant to para2 graph (1) may remain in effect only during the pe3 riod for which the State law or other requirement re4 quired under paragraph (2) remains in effect.

5 (b) MULTIPLE-STATE AREAS.—In the case of any

6 census tract that contains area within (1) any State for

7 which a waiver has been made pursuant to subsection (a),

8 and (2) any State for which such a waiver has not been

9 made, the provisions of this title requiring submission of

10 information to the Secretary regarding such tract or area

11 shall be considered to apply only to the portion that is

12 located within the State for which such a waiver has not

13 been made.

14 (c) AUTHORITY FOR SECRETARY TO OBTAIN INFOR15 MATION DIRECTLY FROM INSURERS.—If the State for

16 which a waiver has been made pursuant to subsection (a)

17 does not submit to the Secretary the information required

18 under subsection (a)(2)(A) or submits information that is

19 not complete, the Secretary shall require the insurers

20 transacting business within the State to submit such infor21 mation directly to the Secretary.

22 SEC. 206. REPORTING BY PRIVATE MORTGAGE INSURERS.

23 (a) HMDA REPORTING.—On an annual basis, the

24 Financial Institutions Examination Council shall deter25 mine the extent to which each insurer providing private
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1 mortgage insurance is making available to the public and

2 submitting to the appropriate agency information regard3 ing such insurance that is equivalent to the information

4 regarding mortgages required to be reported under the

5 Home Mortgage Disclosure Act of 1975.

6 (b) REPORTING UNDER THIS TITLE.—

7 (1) CERTIFICATION OF NONCOMPLIANCE.—If,

8 for any annual period referred to in subsection (a),

9 such Council determines that any insurer providing

10 private mortgage insurance is not making available

11 to the public or submitting the information referred

12 to in subsection (a) or that the information made

13 available or submitted is not equivalent information

14 as described in subsection (a), then the Council shall

15 notify the insurer of such noncompliance. If, after

16 the expiration of a reasonable period of time, the in17 surer has not remedied such noncompliance to the

18 satisfaction of the Council, then the Council shall

19 immediately certify such noncompliance to the Sec20 retary.

21 (2) REQUIREMENT.—Upon the receipt of a cer22 tification under paragraph (1), the Secretary shall,

23 by order, require such insurer to submit to the Sec24 retary information regarding such insurance that
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1 complies with the provisions of section 203 that are

2 applicable to such insurance.

3 SEC. 207. REPORTING OF INFORMATION REGARDING IN4 VESTMENTS BY INSURERS.

5 (a) IN GENERAL.—The Secretary of Housing and

6 Urban Development shall, by regulation, require that each

7 insurer that makes an investment in a property or busi8 ness shall compile and submit to the Secretary for each

9 annual reporting period, the following information:

10 (1) DIRECT LOANS.—

11 (A) COMMERCIAL REAL ESTATE LOANS.—

12 The total number of loans for the purchase of

13 commercial real estate made by the insurer, the

14 aggregate amount of such loans, and the

15 amount of each such loan, by census tract, in16 cluding low- and moderate-income neighbor17 hoods, in which the real estate for which the

18 loan was made is located.

19 (B) SINGLE-FAMILY MORTGAGES.—The

20 total number of mortgage loans for the pur21 chase of 1- to 4-family dwellings made by the

22 insurer, the aggregate amount of such loans,

23 and the amount of each such loan, by census

24 tract, including low- and moderate-income

25 neighborhoods, in which the dwelling for which
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1 the loan was made is located, which information

2 shall be disaggregated by racial characteristics,

3 income level, and gender of the borrower under

4 the loan.

5 (C) COMMERCIAL AND INDUSTRIAL

6 LOANS.—The total number of commercial and

7 industrial loans made by the insurer, the aggre8 gate amount of such loans, and the amount of

9 each such loan, by census tract, including low10 and moderate-income neighborhoods, in which

11 the property or business involved in the loan is

12 located, which information shall be

13 disaggregated by the size of business of the bor14 rower under the loan and by the ownership

15 characteristic of the business, which shall be

16 classified as either minority-owned, women17 owned, or otherwise-owned.

18 (2) LOAN PURCHASES.—

19 (A) COMMERCIAL REAL ESTATE LOANS.—

20 The total number of loans for the purchase of

21 commercial real estate purchased by the in22 surer, the aggregate amount of such loans, and

23 the amount of each such loan, by census tract,

24 including low- and moderate-income neighbor-
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1 hoods, in which the real estate for which the

2 loan was made is located.

3 (B) SINGLE-FAMILY MORTGAGES.—The

4 total number of mortgage loans for the pur5 chase of 1- to 4-family dwellings purchased by

6 the insurer, the aggregate amount of such

7 loans, and the amount of each such loan, by

8 census tract, including low- and moderate-in9 come neighborhoods, in which the dwelling for

10 which the loan was made is located, which in11 formation shall be disaggregated by racial char12 acteristics, income level, and gender of the bor13 rower under the loan.

14 (C) COMMERCIAL AND INDUSTRIAL

15 LOANS.—The total number of commercial and

16 industrial loans purchased by the insurer, the

17 aggregate amount of such loans, and the

18 amount of each such loan, by census tract, in19 cluding low- and moderate-income neighbor20 hoods, in which the property or business in21 volved in the loan is located, which information

22 shall be disaggregated by the size of business of

23 the borrower under the loan and by the owner24 ship characteristic of the business, which shall
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1 be classified as either minority-owned, women2 owned, or otherwise-owned.

3 (3) OTHER INVESTMENTS.—For such other in4 vestments made by the insurer as the Secretary may

5 designate pursuant to subsection (b), the total num6 ber of such investments, the aggregate amount of

7 such investments, and the amount of each such in8 vestment, by census tract, including low- and mod9 erate-income neighborhoods, in which the property

10 or business involved in the investment is located, as

11 determined by the Secretary, which information shall

12 be disaggregated by the size of business of the bor13 rower under the loan and by the ownership char14 acteristic of the business, which shall be classified

15 as either minority-owned, women-owned, or other16 wise-owned.

17 (b) DESIGNATION OF OTHER INVESTMENTS.—

18 (1) IN GENERAL.—For purposes of subsection

19 (a)(3), the Secretary may designate activities and in20 vestments other than the investments described in

21 paragraphs (1) and (2) of subsection (a) for which

22 insurers shall compile and submit information under

23 this section.

24 (2) REQUIREMENT.—In making designations

25 under this subsection, the Secretary shall designate
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1 (A) activities and investments that significantly ben2 efit low- and moderate-income families and persons,

3 small businesses in distressed communities, or

4 minority- or women-owned businesses, and (B) ac5 tivities and investments that contribute to the cre6 ation of jobs and economic development of distressed

7 communities.

8 (3) CONSIDERATIONS.—The Secretary shall

9 specifically consider for designation under this sub10 section investments in community development fi11 nancial institutions, community development cor12 porations, State-issued bonds, and securities backed

13 by State development funds.

14 (c) SIZE OF BUSINESS.—The Secretary shall, by reg15 ulation, establish various categories of the sizes of busi16 nesses, for purposes of disaggregating information under

17 paragraphs (1)(C), (2)(C), and (3) of subsection (a) by

18 various sizes of businesses.

19 SEC. 208. SUBMISSION OF INFORMATION TO SECRETARY

20 AND MAINTENANCE OF INFORMATION.

21 (a) PERIOD OF MAINTENANCE.—Each insurer re22 quired by this title to compile and submit information to

23 the Secretary shall maintain such information for the 3-

24 year period beginning upon the conclusion of the annual

25 reporting period to which such information relates. The
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1 Secretary shall maintain any information submitted to the

2 Secretary for such period as the Secretary considers ap3 propriate and feasible to carry out the purposes of this

4 title and to allow for historical analysis and comparison

5 of the information.

6 (b) SUBMISSION.—The Secretary shall issue regula7 tions prescribing a standard schedule (taking into consid8 eration the provisions of section 209(a)), format, and

9 method for submitting information under this title to the

10 Secretary. The format and method of submitting the infor11 mation shall facilitate and encourage the submission in a

12 form readable by a computer. Any insurer submitting in13 formation to the Secretary may submit in writing to the

14 Secretary any additional information or explanations that

15 the insurer considers relevant to the decision by the in16 surer to sell insurance.

17 SEC. 209. AVAILABILITY AND ACCESS SYSTEM.

18 (a) AVAILABILITY TO PUBLIC.—

19 (1) IN GENERAL.—The Secretary shall main20 tain and make available to the public, in accordance

21 with the requirements of this section, any informa22 tion submitted to the Secretary under this title and

23 any information compiled by the Secretary under

24 this title.
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1 (2) TIMING.—The Secretary shall make such

2 information publicly available on a timetable deter3 mined by the Secretary, but not later than 9 months

4 after the conclusion of the annual reporting period

5 to which the information relates, except that such

6 information shall not be made available to the public

7 until it is available in its entirety unless not all the

8 information required to be reported is available by

9 such date.

10 (b) PUBLIC ACCESS SYSTEM.—

11 (1) IMPLEMENTATION.—The Secretary shall

12 implement a system to facilitate access to any infor13 mation required to be made available to the public

14 under this title.

15 (2) BASES OF AVAILABILITY.—The system shall

16 provide access in the following manners:

17 (A) ACCESS TO ITEMIZED INFORMATION.—

18 With respect to information submitted under by

19 insurers, on the basis of the insurer submitting

20 the information, on the basis of the census

21 tract, including low- and moderate-income

22 neighborhoods, and on any other basis the Sec23 retary considers feasible and appropriate.

24 (B) ACCESS TO AGGREGATE INFORMA25 TION.—With respect to aggregate information
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1 compiled by the Secretary, on the basis of (i)

2 the insurer submitting the information, and (ii)

3 the census tract, including low- and moderate4 income neighborhoods, and on any other basis

5 the Secretary considers feasible and appro6 priate.

7 (c) PROTECTIONS REGARDING LOSS INFORMA8 TION.—

9 (1) PROHIBITION OF DISCLOSURE OF LOSS IN10 FORMATION.—Notwithstanding any other provision

11 of this title, the Secretary may not make available

12 to the public or otherwise disclose any information

13 submitted under this title regarding the amount or

14 number of claims paid by any insurer, the amount

15 of losses of any insurer, or the loss experience for

16 any insurer, except (A) in the form of a loss ratio

17 (expressing the relationship of claims paid to pre18 miums) made available or disclosed in compliance

19 with the provisions of paragraph (2), or (B) as pro20 vided in paragraph (3).

21 (2) PROTECTION OF IDENTITY OF INSURER.—

22 In making available to the public or otherwise dis23 closing a loss ratio for an insurer—

24 (A) the Secretary may not identify the in25 surer to which the loss ratio relates; and
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1 (B) the Secretary may disclose the loss

2 ratio only in a manner that does not allow any

3 party to determine the identity of the specific

4 insurer to which the loss ratio relates, except

5 parties having access to information under

6 paragraph (3).

7 (3) CONFIDENTIALITY OF INFORMATION DIS8 CLOSED TO GOVERNMENTAL AGENCIES.—The Sec9 retary may make information referred to in para10 graph (1) and the identity of the specific insurer to

11 which such information relates available to any Fed12 eral entity and any State agency responsible for reg13 ulating insurance in a State and may otherwise dis14 close such information to any such entity or agency,

15 but only to the extent such entity or agency agrees

16 not to make any such information available or dis17 close such information to any other person.

18 SEC. 210. DESIGNATIONS.

19 (a) DESIGNATION OF LINES OF INSURANCE.—

20 (1) IN GENERAL.—The Secretary shall, by reg21 ulation, designate lines of insurance as designated

22 lines for purposes of this title, as follows:

23 (A) AUTOMOBILE.—The Secretary shall

24 designate private passenger automobile insur25 ance and shall also designate any sublines and
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1 coverage types of private passenger automobile

2 insurance that the Secretary considers appro3 priate to determine and compare the avail4 ability, affordability, and type of coverage in

5 such line among applicable regions.

6 (B) NONCOMMERCIAL INSURANCE FOR

7 RESIDENTIAL PROPERTY.—The Secretary shall

8 designate homeowners insurance and dwelling

9 fire and allied lines, and shall distinguish the

10 coverage types in such lines by the perils cov11 ered and by market or replacement value. For

12 purposes of this title, homeowners insurance

13 shall not include any renters coverage or cov14 erage for the personal property of a condo15 minium owner.

16 (2) REPORT.—At any time the Secretary deter17 mines that any line of insurance not described in

18 paragraph (1) should be a designated line because

19 disparities in coverage provided under such line exist

20 among geographic areas having different income lev21 els or racial composition, the Secretary shall submit

22 a report recommending designating such line of in23 surance as a designated line for purposes of this title

24 to the Committee on Banking, Finance and Urban
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1 Affairs of the House of Representatives and the ap2 propriate Committees of the Senate.

3 (3) DURATION.—

4 (A) IN GENERAL.—Except as provided in

5 subparagraph (B), the Secretary shall make the

6 designations under this subsection once every 5

7 years, by regulation, and each line and subline

8 or coverage type designated under such regula9 tions shall be designated for each of the first 5

10 successive annual reporting periods occurring

11 after issuance of the regulations.

12 (B) ALTERATION.—During any 5-year pe13 riod referred to in subparagraph (A) in which

14 designations are in effect, the Secretary may

15 amend or revise the designated lines, sublines,

16 and coverage types only by regulation and only

17 in accordance with the requirements of this

18 subsection. Such regulations amending or revis19 ing designations shall apply only to annual re20 porting periods beginning after the expiration

21 of the 6-month period beginning on the date of

22 issuance of the regulations.

23 (b) TIMING OF DESIGNATIONS.—The Secretary shall

24 make the designations required by subsection (a)(3)(A)

25 and notify interested parties during the 6-month period
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1 ending 6 months before the commencement of the first

2 annual reporting period to which such designations apply.

3 (c) OBTAINING INFORMATION.—The Secretary may

4 require insurers to submit to the Secretary such informa5 tion as the Secretary considers necessary to make designa6 tions specifically required under this title. The Secretary

7 may not require insurers to submit any information under

8 this subsection that relates to any line of insurance not

9 specifically authorized to be designated pursuant to this

10 title or that is to be used solely for the purpose of a report

11 under subsection (a)(2).

12 SEC. 211. ENFORCEMENT.

13 (a) CIVIL PENALTIES.—Any insurer who is deter14 mined by the Secretary, after providing opportunity for

15 a hearing on the record, to have violated any requirement

16 pursuant to this title shall be subject to a civil penalty

17 of not to exceed $5,000 for each day during which such

18 violation continues.

19 (b) INJUNCTION.—The Secretary may bring an ac20 tion in an appropriate United States district court for ap21 propriate declaratory and injunctive relief against any in22 surer who violates the requirements referred to in sub23 section (a).
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1 (c) INSURER LIABILITY.—An insurer shall be respon2 sible under subsections (a) and (b) for any violation of

3 a statistical agent acting on behalf of the insurer.

4 SEC. 212. EXEMPTION AND RELATION TO STATE LAWS.

5 (a) EXEMPTION FOR UNITED STATES PROGRAMS.—

6 Reporting shall not be required under this title with re7 spect to insurance provided by any program underwritten

8 or administered by the United States.

9 (b) RELATION TO STATE LAWS.—This title shall not

10 be construed as annulling, altering, or affecting the laws

11 of any State or any political subdivision of a State relating

12 to public disclosure, submission of information, and rec13 ordkeeping or exempting any insurer subject to this title

14 from any obligation under, or an obligation to comply

15 with, any such law.

16 SEC. 213. REGULATIONS.

17 (a) AUTHORIZATION.—

18 (1) IN GENERAL.—The Secretary shall

19 issue any regulations required under this title

20 and any other regulations that may be nec21 essary to carry out this title.

22 (2) SUBSTANTIVE REGULATIONS.—The regula23 tions shall be issued in accordance with the proce24 dures under section 553 of title 5, United States

25 Code, for substantive regulations.
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1 (3) EFFECTIVE DATE.—Except as otherwise

2 provided in this title, such final regulations shall be

3 issued before the end of the 18-month period begin4 ning on the date of the enactment of this Act.

5 (b) BURDENS.—In prescribing such regulations, the

6 Secretary shall take into consideration the administrative,

7 paperwork, and other burdens on insurance agents, includ8 ing independent insurance agents, involved in complying

9 with the requirements of this title and shall minimize the

10 burdens imposed by such requirements with respect to

11 such agents.

12 SEC. 214. DEFINITIONS.

13 For purposes of this subtitle, the following definitions

14 shall apply:

15 (1) AGENT.—The term ‘‘agent’’—

16 (A) means, with respect to an insurer, an

17 agent licensed by a State who sells property and

18 casualty insurance; and

19 (B) includes agents who are employees of

20 the insurer, agents who are independent con21 tractors working exclusively for the insurer, and

22 agents who are independent contractors ap23 pointed to represent the insurer on a nonexclu24 sive basis.
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1 (2) COMMERCIAL INSURANCE.—The term

2 ‘‘commercial insurance’’ means any line of property

3 and casualty insurance, except private passenger

4 automobile, homeowner’s insurance and dwelling fire

5 and allied lines, and other personal lines of insur6 ance.

7 (3) DESIGNATED LINE.—The term ‘‘designated

8 line’’ means a line of insurance or bid, performance,

9 and payment bonds designated by the Secretary

10 under section 210(a).

11 (4) EXPOSURES.—The term ‘‘exposures’’

12 means, for purposes of section 203, with respect to

13 an insurance policy, an expression of an exposure

14 unit covered under the policy compared to the dura15 tion of the policy (pursuant to standards established

16 by the Secretary for uniform reporting of expo17 sures).

18 (5) EXPOSURE UNITS.—The term ‘‘exposure

19 units’’ means, for purposes of section 203, an auto20 mobile or dwelling covered under an insurance policy

21 for private passenger automobile or homeowners or

22 dwelling fire and allied lines coverage.

23 (6) INSURANCE.—The term ‘‘insurance’’ means

24 property and casualty insurance. Such term includes

25 primary insurance, surplus lines insurance, and any
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1 other arrangement for the shifting and distributing

2 of risks that is determined to be insurance under the

3 law of any State in which the insurer or insurer

4 group engages in an insurance business.

5 (7) INSURER.—The term ‘‘insurer’’

6 (A) means any corporation, association, so7 ciety, order, firm, company, mutual, partner8 ship, individual, aggregation of individuals, or

9 any other legal entity that is authorized to

10 transact the business of property or casualty in11 surance in any State or that is engaged in a

12 property or casualty insurance business; and

13 (B) does not include an individual or entity

14 which represents an insurer as agent solely for

15 the purpose of selling or which represents a

16 consumer as a broker solely for the purpose of

17 buying insurance.

18 (8) ISSUED.—The term ‘‘issued’’ means, with

19 respect to an insurance policy, newly issued or re20 newed.

21 (9) JOINT UNDERWRITING ASSOCIATION.—The

22 term ‘‘joint underwriting association’’ means an un23 incorporated association of insurers established to

24 provide a particular form of insurance to the public.
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1 (10) MORTGAGE INSURANCE.—The term

2 ‘‘mortgage insurance’’ means insurance against the

3 nonpayment of, or default on, a mortgage or loan

4 for residential or commercial property.

5 (11) PRIVATE MORTGAGE INSURANCE.—The

6 term ‘‘private mortgage insurance’’ means mortgage

7 insurance other than mortgage insurance made

8 available under the National Housing Act, title 38 of

9 the United States Code, or title V of the Housing

10 Act of 1949.

11 (12) PROPERTY AND CASUALTY INSURANCE.—

12 The term ‘‘property and casualty insurance’’—

13 (A) means insurance against loss of or

14 damage to property, insurance against loss of

15 income or extra expense incurred because of

16 loss of, or damage to, property, and insurance

17 against third party liability claims caused by

18 negligence or imposed by statute or contract;

19 and

20 (B) does not include workers’ compensa21 tion, professional liability, or title insurance.

22 (13) RESIDUAL MARKET.—The term ‘‘residual

23 market’’—

24 (A) means an assigned risk plan, joint un25 derwriting association, or any similar mecha-
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1 nism designed to make insurance available to

2 those unable to obtain it in the voluntary mar3 ket; and

4 (B) includes each statewide plan under

5 part A of title XII of the National Housing Act

6 to assure fair access to insurance requirements.

7 (14) RURAL AREA.—The term ‘‘rural area’’

8 means any area that—

9 (A) has a population of 10,000 or more;

10 (B) has a continuous boundary; and

11 (C) contains only areas that are rural

12 areas, as such term is defined in section 520 of

13 the Housing Act of 1949 (except that clause

14 (3)(B) of such section 520 shall not apply for

15 purposes of this title).

16 (15) SECRETARY.—The term ‘‘Secretary’’

17 means the Secretary of Housing and Urban Develop18 ment.

19 (16) STATE.—The term ‘‘State’’ means any

20 State, the District of Columbia, the Commonwealth

21 of Puerto Rico, the Northern Mariana Islands, the

22 Virgin Islands, American Samoa, and the Trust Ter23 ritory of the Pacific Islands.
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1 SEC. 215. EFFECTIVE DATE.

2 The requirements of this title relating to reporting

3 of information by insurers shall take effect with respect

4 to the first annual reporting period that begins more than

5 36 months after the date of the enactment of this Act.

6 Subtitle B—Improvements in Other

7 Data Disclosure Requirements

8 SEC. 221. IMPROVE SMALL BUSINESS AND AGRICULTURE

9 LENDING DATA DISCLOSURE.

10 (a) REPORTING REQUIREMENTS.—Section 806 of the

11 Community Reinvestment Act of 1977 (12 U.S.C. 2905)

12 is amended—

13 (1) by inserting ‘‘(a) IN GENERAL.—’’ after

14 ‘‘SEC. 806.’’; and

15 (2) by adding at the end the following new sub16 section:

17 ‘‘(b) REGULATORY EXEMPTIONS FROM REPORTING

18 REQUIREMENTS.—

19 ‘‘(1) PROHIBITION ON REGULATORY EXEMP20 TIONS FROM CERTAIN REPORTING REQUIRE21 MENTS.—No provision of this title may be construed

22 as authorizing the Board or any other Federal agen23 cy to exempt any depository institution from the re24 quirements of any regulation prescribed under this

25 title relating to the provision of data relating to

26 farm and small business loans, except with regard to
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1 any institution described in section 809(a) which is

2 not an affiliate of any bank holding company or sav3 ings and loan holding company.

4 ‘‘(2) IMPROVED DATA COLLECTION FOR SMALL

5 BUSINESS AND FARM LOANS.—Regulations pre6 scribed under this section shall require the following

7 information to be collected by regulated financial in8 stitutions in connection with applications for farm

9 and small business loans:

10 ‘‘(A) The race and gender of applicants,

11 including minority-owned and women-owned

12 farms or small businesses.

13 ‘‘(B) The revenue of applicants for farm

14 and small business loans.

15 ‘‘(C) The actual census tract in which the

16 applicant resides or is located.

17 ‘‘(D) The disposition of the application by

18 the regulated financial institution and appli19 cant.

20 ‘‘(3) DEFINITIONS.—For purposes of this para21 graph (2), the following definitions shall apply:

22 ‘‘(A) MINORITY-OWNED FARM OR SMALL

23 BUSINESS.—The term ‘minority-owned farm or

24 small business’ means a farm or small

25 business—
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1 ‘‘(i) more than 50 percent of the own2 ership or control of which is held by 1 or

3 more minority individuals; and

4 ‘‘(ii) more than 50 percent of the net

5 profit or loss of which accrues to 1 or more

6 minority individuals.

7 ‘‘(B) WOMEN-OWNED FARM OR SMALL

8 BUSINESS.—The term ‘women-owned farm or

9 small business’ means a farm or small

10 business—

11 ‘‘(i) more than 50 percent of the own12 ership or control of which is held by 1 or

13 more women; and

14 ‘‘(ii) more than 50 percent of the net

15 profit or loss of which accrues to 1 or more

16 women.

17 ‘‘(C) MINORITY.—The term ‘minority’ has

18 the meaning given to such term by section

19 1204(c)(3) of the Financial Institutions Re20 form, Recovery and Enforcement Act of 1989.’’.

21 SEC. 222. MAINTENANCE AND DISCLOSURE OF INFORMA22 TION BY THE FINANCIAL INSTITUTIONS EX23 AMINATION COUNSEL.

24 In collecting information from financial institutions,

25 and affiliates of financial institutions, under the Commu-
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1 nity Reinvestment Act of 1977 and the Home Mortgage

2 Disclosure Act of 1975 relating to farm, small business,

3 and home loans, and maintaining such information on and

4 disclosing such information from the national information

5 center database, the Financial Institutions Examination

6 Council shall identify whether the financial institution or

7 affiliate is transmitting such information pursuant to the

8 Community Reinvestment Act of 1977 or the Home Mort9 gage Disclosure Act of 1975.

10 TITLE III—REGULATORY AND

11 STRUCTURAL REFORMS

12 SEC. 301. ANTIREDLINING REQUIREMENT FOR FINANCIAL

13 HOLDING COMPANIES.

14 Section 4(l)(1) of the Bank Holding Company Act of

15 1956 (12 U.S.C. 1843(l)(1)) is amended—

16 (1) by striking ‘‘and’’ at the end of subpara17 graph (B);

18 (2) by striking the period at the end of sub19 paragraph (C) and inserting ‘‘; and’’; and

20 (3) by adding at the end the following new sub21 paragraph:

22 ‘‘(D) in the case of any bank holding com23 pany which underwrites or sells, or any affiliate

24 of which underwrites or sells, annuities con25 tracts or contracts insuring, guaranteeing, or
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1 indemnifying against loss, harm, damage, ill2 ness, disability, or death—

3 ‘‘(i) the company or affiliate has not

4 been adjudicated in any Federal court, and

5 has not entered into a consent decree filed

6 in a Federal court or into a settlement

7 agreement, premised upon a violation of

8 the Fair Housing Act for the activities de9 scribed in this subparagraph; or

10 ‘‘(ii) if such company or affiliate has

11 entered into any such consent decree or

12 settlement agreement, the company or the

13 affiliate is not in violation of the decree or

14 settlement agreement as determined by a

15 court of competent jurisdiction or the

16 agency with which the decree or agreement

17 was entered into.’’.

18 SEC. 302. NOTICE AND PUBLIC COMMENT REQUIRED BE19 FORE ESTABLISHING A FINANCIAL HOLDING

20 COMPANY.

21 Paragraph (6) of section 4(k) of the Bank Holding

22 Company Act of 1956 (12 U.S.C. 1843(k)) is amended

23 to read as follows:

24 ‘‘(6) NOTICE AND OPPORTUNITY FOR COMMENT

25 REQUIRED.—
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1 ‘‘(A) IN GENERAL.—No financial holding

2 company shall directly or indirectly acquire, and

3 no company that becomes a financial holding

4 company shall directly or indirectly acquire con5 trol of, any company in the United States, in6 cluding through merger, consolidation, or other

7 type of business combination, that is engaged in

8 activities permitted under this subsection or

9 subsection (n) or (o), unless—

10 ‘‘(i) such holding company has pro11 vided notice to the Board, not later than

12 60 days prior to such proposed acquisition

13 or prior to becoming a financial holding

14 company, and during that time period, or

15 such longer time period not exceeding an

16 additional 60 days, as established by the

17 Board;

18 ‘‘(ii) the Board has provided public

19 notice and opportunity for comment for

20 not less than 30 days; and

21 ‘‘(iii) the Board has not issued a no22 tice disapproving the proposed acquisition

23 or retention.

24 ‘‘(B) FACTORS FOR CONSIDERATION.—In

25 reviewing any prior notice filed under this para-
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1 graph, the Board shall take into

2 consideration—

3 ‘‘(i) whether the company is in com4 pliance with all applicable criteria set forth

5 in subsection (b) and the provisions of sub6 section (d);

7 ‘‘(ii) whether the proposed combina8 tion represents an undue aggregation of

9 resources;

10 ‘‘(iii) whether the proposed combina11 tion poses a risk to the deposit insurance

12 system;

13 ‘‘(iv) whether the proposed combina14 tion poses a risk to State insurance guar15 anty funds;

16 ‘‘(v) whether the proposed combina17 tion can reasonably be expected to be in

18 the best interests of depositors or policy19 holders of the respective entities;

20 ‘‘(vi) whether the proposed trans21 action can reasonably be expected to fur22 ther the purposes of this Act and produce

23 benefits to the public;

24 ‘‘(vii) whether, and the extent to

25 which, the proposed combination poses an
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1 undue risk to the stability of the financial

2 system in the United States; and

3 ‘‘(viii) the community reinvestment

4 record of all parties to the proposed trans5 action.

6 ‘‘(C) REQUIRED INFORMATION.—The

7 Board may disapprove any prior notice filed

8 under this paragraph if the company submitting

9 such notice neglects, fails, or refuses to furnish

10 to the Board all relevant information required

11 by the Board.

12 ‘‘(D) SOLICITATION OF VIEWS OF OTHER

13 SUPERVISORY AGENCIES.—

14 ‘‘(i) IN GENERAL.—Upon receiving a

15 prior notice under this paragraph, in order

16 to provide for the submission of their views

17 and recommendations, the Board shall give

18 notice of the proposal to—

19 ‘‘(I) the appropriate Federal

20 banking agency of any bank involved;

21 ‘‘(II) the appropriate functional

22 regulator of any functionally regulated

23 nondepository institution (as defined

24 in section 5(c)(1)(C)) involved; and
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1 ‘‘(III) the Secretary of the Treas2 ury, the Attorney General, and the

3 Federal Trade Commission.

4 ‘‘(ii) TIMING.—The views and rec5 ommendations of any agency provided no6 tice under this paragraph shall be sub7 mitted to the Board not later than 30 cal8 endar days after the date on which notice

9 to the agency was given, unless the Board

10 determines that another shorter time pe11 riod is appropriate.

12 SEC. 303. PUBLIC MEETINGS FOR BANK ACQUISITIONS AND

13 MERGERS.

14 (a) BANK HOLDING COMPANY ACT OF 1956.—Sec15 tion 3(c)(2) of the Bank Holding Company Act of 1956

16 (12 U.S.C. 1842(c)(2)) is amended—

17 (1) by striking ‘‘FACTORS.—In every case’’ and

18 inserting ‘‘FACTORS.—

19 ‘‘(A) IN GENERAL.—In every case’’; and

20 (2) by adding at the end the following new sub21 paragraph:

22 ‘‘(B) PUBLIC MEETINGS.—In the case of

23 each application for approval under this section,

24 the Board shall, as necessary and on a timely

25 basis, conduct public meetings in 1 or more
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1 areas where the Board believes, in the sole dis2 cretion of the Board, there will be a substantial

3 public impact.’’.

4 (b) FEDERAL DEPOSIT INSURANCE ACT.—Section

5 18(c) of the Federal Deposit Insurance Act (12 U.S.C.

6 1828(c)) is amended by adding at the end the following

7 new paragraph:

8 ‘‘(12) PUBLIC MEETINGS.—In each merger trans9 action involving 1 or more insured depository institutions,

10 the responsible agency shall, as necessary and on a timely

11 basis, conduct public meetings in 1 or more areas where

12 the agency believes, in the sole discretion of the agency,

13 there will be a substantial public impact.’’.

14 (c) NATIONAL BANK CONSOLIDATION AND MERGER

15 ACT.—The National Bank Consolidation and Merger Act

16 (12 U.S.C. 215 et seq.) is amended by adding at the end

17 the following new section:

18 ‘‘SEC. 6. PUBLIC MEETINGS FOR BANK CONSOLIDATIONS

19 AND MERGERS.

20 ‘‘In each case of a consolidation or merger under this

21 Act, the Comptroller shall, as necessary and on a timely

22 basis, conduct public meetings in 1 or more areas where

23 the Comptroller believes, in the sole discretion of the

24 Comptroller, there will be a substantial public impact.’’.
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1 (d) HOME OWNERS’ LOAN ACT.—Section 10(e) of

2 the Home Owners’ Loan Act (12 U.S.C. 1463) is amended

3 by adding at the end the following new paragraph:

4 ‘‘(7) PUBLIC MEETINGS FOR DEPOSITORY IN5 STITUTION ACQUISITIONS AND MERGERS.—In each

6 case involving an application under this subsection,

7 the Director shall, as necessary and on a timely

8 basis, conduct public meetings in 1 or more areas

9 where the Director believes, in the sole discretion of

10 the Director, there will be a substantial public im11 pact.’’.

12 SEC. 304. CRA EXAMINATION SCHEDULE FOR SMALL

13 BANKS.

14 Section 809(a) of the Community Reinvestment Act

15 of 1977 (12 U.S.C. 2908(a)) is amended—

16 (1) in paragraph (1), by striking ‘‘60 months’’

17 and inserting ‘‘48 months’’; and

18 (2) in paragraph (2), by striking ‘‘48 months’’

19 and inserting ‘‘36 months’’.

20 SEC. 305. CRA SUNSHINE REQUIREMENTS.

21 (a) IN GENERAL.—Section 48 of the Federal Deposit

22 Insurance Act (12 U.S.C. 1831y) (as added by section 711

23 of the Gramm-Leach-Bliley Act) is amended—
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1 (1) in subsection (a), by striking paragraphs

2 (1) and (2) and inserting the following new para3 graphs:

4 ‘‘(1) shall be disclosed to the appropriate Fed5 eral banking agency and subsequently may be made

6 available in accordance with, and to the extent pro7 vided in, section 552 of title 5, United States Code,

8 subject to section 552a of such title; and

9 ‘‘(2) may be monitored by the appropriate Fed10 eral banking agency, during the effective period of

11 the agreement, for purposes of determining the ex12 tent to which the parties to the agreement are com13 plying with the agreement.’’;

14 (2) by striking subsections (b), (c), (d), (f), (g),

15 and (h);

16 (3) by redesignating subsection (e) as sub17 section (b); and

18 (4) in paragraph (1)(B) of subsection (b) (as so

19 redesignated by paragraph (3) of this subsection)—

20 (A) by inserting ‘‘or’’ after the semicolon

21 at the end of clause (i);

22 (B) by striking the period at the end of

23 clause (ii) and inserting ‘‘; or’’; and

24 (C) by striking clause (iii).
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1 SEC. 306. CONTINUING COMMUNITY REINVESTMENT RE2 QUIREMENT FOR FINANCIAL HOLDING COM3 PANIES.

4 (a) IN GENERAL.—Section 4(l)(2) of the Community

5 Reinvestment Act of 1977 (12 U.S.C. 1843(l)(2)) is

6 amended—

7 (1) in subparagraph (A), by inserting ‘‘or con8 tinuing’’ after ‘‘commencing’’; and

9 (2) in subparagraph (B), by inserting ‘‘or main10 taining’’ after ‘‘acquiring’’.

11 (b) TECHNICAL AND CONFORMING AMENDMENT.—

12 (1) Paragraph (1) of section 4(m) of the Bank

13 Holding Company Act of 1956 (12 U.S.C.

14 1843(m)(1)) is amended by striking ‘‘subsection

15 (l)(1)’’ and inserting ‘‘paragraph (1) or (2) of sub16 section (l)’’.

17 (2) Paragraph (2) of section 4(m) of the Bank

18 Holding Company Act of 1956 (12 U.S.C.

19 1843(m)(2)) is amended by striking ‘‘subsection

20 (l)(1)’’ and inserting ‘‘paragraphs (1) and (2) of

21 subsection (l)’’.

22 SEC. 307. CHANGES IN REPORTING REQUIREMENTS UNDER

23 THE HOME MORTGAGE DISCLOSURE ACT OF

24 1975.

25 (a) PROHIBITION ON REGULATORY EXEMPTIONS

26 FROM REPORTING REQUIREMENTS.—Section 304 of the
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1 Home Mortgage Disclosure Act of 1975 (12 U.S.C. 2803)

2 is amended by adding at the end the following new sub3 section:

4 ‘‘(n) PROHIBITION ON REGULATORY EXEMPTIONS

5 FROM REPORTING REQUIREMENTS.—Subject to sub6 section (i)—

7 ‘‘(1) no provision of this title may be construed

8 as authorizing the Board, the Secretary, or any

9 other Federal agency to exempt any depository insti10 tution from the requirements of this title; and

11 ‘‘(2) any exemption from the requirements of

12 this title provided in any regulation, such as the ex13 emption provided in Appendix A to part 203 of the

14 Code of Federal Regulations for lending institutions

15 described in section 303(2)(B) whose total dollar

16 amount of purchase loans originated in any year did

17 not exceed 10 percent of the total dollar amount of

18 all loan originations by such institution in such year,

19 shall cease to be effective as of the date of the enact20 ment of the Community Reinvestment Modernization

21 Act of 2000.’’

22 (b) INFORMATION ON PRIME AND SUBPRIME MORT23 GAGE LOANS.—
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1 (1) IN GENERAL.—Section 304(b) of the Home

2 Mortgage Disclosure Act of 1975 (12 U.S.C.

3 2803(b)) is amended—

4 (A) by striking ‘‘and’’ at the end of para5 graph (3);

6 (B) by striking the period at the end of

7 paragraph (4) and inserting a semicolon; and

8 (C) by adding at the end the following new

9 paragraph:

10 ‘‘(5) the number and dollar amount of mort11 gage loans that were subprime loans and the number

12 and dollar amount of mortgage loans that were not

13 subprime loans;’’.

14 (2) SUBPRIME LENDING PROGRAM DEFINED.—

15 Section 303 of the Home Mortgage Disclosure Act

16 of 1975 (12 U.S.C. 2802) is amended by adding at

17 the end the following new paragraph:

18 ‘‘(7) SUBPRIME LOANS.—The term ‘subprime

19 loan’—

20 ‘‘(A) has the meaning given such term by

21 the Secretary, in regulations; and

22 ‘‘(B) includes any loan made through a

23 program maintained by a depository institution

24 that involves higher interest rates or fees than

25 traditional mortgage loans.’’.
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1 (c) REPORTING OF ADDITIONAL DATA REQUIRED.—

2 Section 304(b) of the Home Mortgage Disclosure Act of

3 1975 (12 U.S.C. 2803(b)) is amended by inserting after

4 paragraph (5) (as added by subsection (b) of this section)

5 the following new paragraph:

6 ‘‘(6) information on loan pricing and terms, in7 cluding interest rates, bona fide discount points,

8 origination fees, financing of lump sum insurance

9 premium payments, balloon payment, and prepay10 ment penalties; and’’.

11 (d) REPORTING ON MANUFACTURED HOME LOANS

12 THAT ARE NOT TREATED BY THE DEPOSITORY INSTITU13 TION AS REAL ESTATE LOANS.—

14 (1) IN GENERAL.—Section 304(b) of the Home

15 Mortgage Disclosure Act of 1975 (12 U.S.C.

16 2803(b)) is amended by inserting after paragraph

17 (6) (as added by subsection (c) of this section) the

18 following new paragraph:

19 ‘‘(7) the number and dollar amount of mort20 gage loans secured by manufactured homes (as de21 fined in section 603 of the National Manufactured

22 Housing Construction and Safety Act of 1974).’’.

23 (2) MORTGAGE LOAN DEFINED TO INCLUDE

24 MANUFACTURED HOME LOANS.—Section 303(1) of

25 the Home Mortgage Disclosure Act of 1975 (12
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1 U.S.C. 2802(1)) is amended by inserting ‘‘or a man2 ufactured home’’ after ‘‘residential real property’’.

3 (e) ENFORCEMENT POWERS FOR SECRETARY.—Sec4 tion 305 of the Home Mortgage Disclosure Act of 1975

5 (12 U.S.C. 2804) is amended by inserting at the end the

6 following new subsection:

7 ‘‘(d) AUTHORITY TO CARRY OUT SUBSECTION

8 (b)(4).—For purposes of enforcing compliance with the re9 quirements of this title pursuant to subsection (b)(4)—

10 ‘‘(1) subsections (b) through (n) of section 8 of

11 the Federal Deposit Insurance Act shall apply to de12 pository institutions described in section 303(2)(B)

13 in the same manner they apply to depository institu14 tions (as defined in section 3 of the Federal Deposit

15 Insurance Act); and

16 ‘‘(2) the Secretary shall have the same powers

17 and duties under such subsections with respect to

18 depository institutions described in section

19 303(2)(B) as an appropriate Federal banking agen20 cy (as defined in such Act) has with respect to de21 pository institutions (as defined in section 3 of the

22 Federal Deposit Insurance Act).’’.

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