I

107TH CONGRESS

1ST SESSION H. R. 865

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

MARCH 6, 2001

Mr. BARRETT (for himself, Mr. GUTIERREZ, Mr. FRANK, Mrs. JONES of Ohio,

Ms. BALDWIN, Ms. MCKINNEY, Mr. MCGOVERN, Ms. HOOLEY of Oregon,

Mr. CAPUANO, Mr. BONIOR, Mr. BLAGOJEVICH, Mr. ACEVEDO-VILA ́, Mr.

FILNER, Mr. HINCHEY, Ms. ROYBAL-ALLARD, Mrs. MEEK of Florida,

Mr. ENGEL, Mr. MCDERMOTT, Mr. TOWNS, Mr. RUSH, and Ms. NORTON) introduced the following bill; which was referred to the Committee

on Financial Services

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.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

3 ‘‘Community Reinvestment Modernization Act of 2001’’.

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

5 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.

Sec. 214. Definitions.

Sec. 215. Effective date.

Subtitle B—Improvements in Other Data Disclosure Requirements
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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.

16 (5) In 1998, the median net worth for His17 panic, African-American, Asian, and other minority

18 families was $16,400, which was 17.3 percent of the
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1 median net worth of $94,900 for nonhispanic white

2 families.

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

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

5 in 1995.

6 (7) Research conducted by the chief economist

7 of the National Association of Insurance Commis8 sioners found that after controlling for risk of loss,

9 a 10 percentage point increase in the number of mi10 norities in a zip code is associated with a 2 percent11 age point increase in the number of ‘‘FAIR plans’’,

12 which are government-sponsored insurance plans of

13 last resort for those who cannot obtain insurance in

14 the private market.

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

16 and insurance, it is necessary to modernize the Com17 munity Reinvestment Act of 1977 to reflect shifting

18 trends in the financial services industry.

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

20 the financial industry reside in bank and thrifts and

21 are covered by the Community Reinvestment Act of

22 1977, down from about 60 percent in the early

23 1980s.

24 SEC. 3. PURPOSES.

25 The purposes of this Act are as follows:
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1 (1) To enhance the availability of financial serv2 ices to citizens of all economic circumstances and in

3 all geographic areas.

4 (2) To enhance the ability of financial institu5 tions to meet the capital and credit needs of all citi6 zens and communities, including underserved com7 munities and populations.

8 (3) To ensure that community reinvestment

9 keeps pace with the affiliation of banks, securities

10 firms, and other financial service providers, as pro11 vided by the Gramm-Leach-Bliley Act.

12 TITLE I—MODERNIZATION OF

13 COMMUNITY REINVESTMENT

14 ACT OF 1977 AND COMMUNITY

15 SERVICE OBLIGATIONS.

16 SEC. 101. EXTENSION OF COMMUNITY REINVESTMENT OB17 LIGATIONS WITHIN A FINANCIAL HOLDING

18 COMPANY.

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

20 1956 (12 U.S.C. 1843(l)) is amended by adding at the

21 end the following new paragraph:

22 ‘‘(4) COMMUNITY NEEDS.—

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

24 of bank holding companies that engage in lend25 ing or offer banking products or services shall
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1 be subject to the Community Reinvestment Act

2 of 1977 in accordance with this paragraph and

3 in the same manner as a regulated financial in4 stitution (as defined in such Act) and the

5 record of any such affiliate in meeting commu6 nity credit, investment, and consumer needs

7 shall be taken into account by the Federal regu8 latory agency with jurisdiction over the affili9 ate’s bank holding company in the course of re10 viewing the activities of the bank holding com11 pany or any application by such affiliate.

12 ‘‘(B) BANKING PRODUCTS AND SERVICES

13 DEFINED.—For purposes of this paragraph, the

14 term ‘banking products and services’ includes—

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

16 section 3 of the Federal Deposit Insurance

17 Act) and related deposit services;

18 ‘‘(ii) consumer loans and extensions of

19 credit and the servicing such loans and ex20 tensions of credit;

21 ‘‘(iii) loans to purchase, refinance,

22 construct, improve, or repair domestic resi23 dential housing or manufactured housing,

24 including single-family and multifamily
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1 residential housing loans and home-equity

2 loans, and the servicing of such loans;

3 ‘‘(iv) small business and commercial

4 loans and the servicing of such loans; and

5 ‘‘(v) checking accounts, savings ac6 counts, and related accounts or instru7 ments, including accounts from which the

8 owner may make withdrawals by negotiable

9 or transferable instruments for the purpose

10 of making payments to third parties.’’.

11 SEC. 102. PROVISIONS RELATING TO IMPROVED RESPON12 SIVENESS OF INSURED DEPOSITORY INSTITU13 TIONS TO COMMUNITY REINVESTMENT ACT

14 OF 1977.

15 (a) RATING REQUIRED FOR EACH STATE, METRO16 POLITAN AREA, AND SERVICE AREA.—Section 807(b)(1)

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

18 2906(b)(1)) is amended by striking subparagraph (B) and

19 inserting the following new subparagraphs to read as fol20 lows:

21 ‘‘(B) INITIAL SEPARATE EVALUATION AND

22 RATING FOR STATE, METROPOLITAN, OTHER

23 SERVICE AREAS REQUIRED.—The information

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

25 (A) with respect to any regulated financial in-
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1 stitution shall be presented separately, and an

2 initial rating shall be determined separately,

3 for—

4 ‘‘(i) each metropolitan area in which

5 the regulated financial institution main6 tains 1 or more domestic branches;

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

8 financial institution maintains 1 or more

9 domestic branches outside of a metropoli10 tan area; and

11 ‘‘(iii) each community in which the

12 regulated financial institution makes more

13 than 0.5 percent of the total amount of

14 loans.

15 ‘‘(C) CONTENT OF SEPARATE EVALUA16 TION.—A written evaluation to which subpara17 graph (B) applies shall describe how the Fed18 eral financial supervisory agency has performed

19 the examination of the regulated financial insti20 tution, including a list of the individual domes21 tic branches examined.

22 ‘‘(D) LOW AND HIGH SATISFACTORY RAT23 INGS.—In assigning ratings under subpara24 graphs (A) and (B), a Federal financial super25 visory agency may assign a rating of ‘low satis-
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1 factory record of meeting community credit

2 needs’ or ‘high satisfactory record of meeting

3 community credit needs’ in lieu of the rating re4 ferred to in paragraph (2)(B).’’.

5 (b) ADDITIONAL PERFORMANCE FACTORS.—Section

6 804(a)(1) of the Community Reinvestment Act of 1977

7 (12 U.S.C. 2903(a)(1)) is amended—

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

9 racial characteristics’’ after ‘‘low- and moderate-in10 come neighborhoods’’; and

11 (2) By inserting ‘‘, taking into account the in12 stitution’s share of the total amount of credit ex13 tended in neighborhoods of different racial and in14 come characteristics within such community’’ before

15 the semicolon at the end.

16 (c) TECHNICAL AND CONFORMING AMENDMENTS.—

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

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

19 2906(b)(1)(A)(iii)) is amended—

20 (A) by inserting ‘‘overall’’ after ‘‘the insti21 tution’s’’; and

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

23 each of the initial ratings determined under

24 subparagraph (B) for each State, metropolitan,

25 and service area in which the institution makes
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1 more than 0.5 percent of the total amount of

2 loans’’ before the period at the end.

3 (2) Section 807 of the Community Reinvest4 ment Act of 1977 (12 U.S.C. 2906) is amended—

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

6 (B) by redesignating subsection (e) as sub7 section (d).

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

9 LENDING AND OTHER NEGATIVE CREDIT

10 PRACTICES.

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

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

13 by adding at the end the following new subsections:

14 ‘‘(d) TREATMENT OF PREDATORY LENDING AND

15 OTHER DISCRIMINATORY CREDIT PRACTICES.—In the

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

17 such institution, which the appropriate Federal financial

18 supervisory agency determines has engaged in any credit

19 practice which has a negative impact on a community or

20 neighborhood, such as predatory lending, or has engaged

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

22 unlawfully discriminates against any person or against

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

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

25 into account in assessing the institution’s record of
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1 meeting the credit needs of its entire community;

2 and

3 ‘‘(2) shall reduce the rating that would other4 wise obtain under section 807 with respect to such

5 institution after consideration of the extent of such

6 negative or discriminatory practice or service.

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

8 purposes of determining whether a regulated financial in9 stitution engages in any practice or service described in

10 subsection (d), an appropriate Federal financial super11 visory agency may require, by regulation, regulated finan12 cial institutions to maintain records of the terms and con13 ditions of credit extended by the institution or the terms

14 and conditions at which credit was offered even though

15 no credit was extended.’’.

16 SEC. 104. RESPONSIVENESS TO COMMUNITY NEEDS FOR

17 SECURITIES AND INVESTMENT SERVICES.

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

19 section is to recognize that each securities company has,

20 with respect to each community comprising an assessment

21 area of such company, a continuing and affirmative obliga22 tion to meet the need for financial services in such commu23 nities, including the needs of low- and moderate-income

24 neighborhoods and persons of modest means.
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1 (b) DEFINITIONS.—For purposes of this section, the

2 following definitions shall apply:

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

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

5 each community in which such company—

6 (A) maintains a retail office or is rep7 resented by an agent; or

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

9 total market in securities.

10 (2) COMMUNITY DEVELOPMENT INVEST11 MENT.—The term ‘‘community development invest12 ment’’ means investment in activities that revitalize

13 and stabilize low- and moderate-income neighbor14 hoods and directly benefit low- and moderate-income

15 individuals, including investment in affordable hous16 ing, community services, small-business development,

17 and economic development.

18 (3) SECURITIES COMPANY.—The term ‘‘securi19 ties company’’ means any person who is—

20 (A) a broker or dealer that is registered

21 under the Securities Exchange Act of 1934;

22 (B) a registered investment adviser, prop23 erly registered by or on behalf of either the Se24 curities and Exchange Commission, with re25 spect to the investment advisory activities of
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1 such investment adviser and activities incidental

2 to such investment advisory activities; or

3 (C) an investment company that is reg4 istered under the Investment Company Act of

5 1940.

6 (c) PROGRAM.—

7 (1) IN GENERAL.—The Securities and Ex8 change Commission, in consultation with the Sec9 retary of the Treasury, shall develop a program to

10 ensure that securities companies meet the obliga11 tions described in subsection (a) and the require12 ments of the program under this subsection.

13 (2) FACTORS TO BE INCLUDED.—

14 (A) CUSTOMER EVALUATION.—The pro15 gram shall include, as appropriate, a method

16 for evaluating a securities company’s record of

17 helping to meet the securities investment needs

18 of its assessment area, including—

19 (i) the number and distribution of

20 customers throughout the community, in21 cluding low- and moderate-income neigh22 borhoods and the dollar amounts of the in23 vestments made by such customers; and

24 (ii) the extent to which the company

25 has adopted innovative and flexible mar-
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1 keting methods, such as low minimum

2 amounts to open accounts and low trans3 action fees, that facilitate the sale of secu4 rities to low- and moderate-income cus5 tomers.

6 (B) COMMUNITY DEVELOPMENT INVEST7 MENTS.—The program shall include, as appro8 priate, a method for evaluating a securities

9 company’s record of community development in10 vestment in each assessment area, including—

11 (i) the number and dollar amount of

12 community development investments in the

13 assessment area; and

14 (ii) the responsiveness of the securi15 ties company, through community develop16 ment investments, to the credit, capital,

17 and community development needs of the

18 assessment area, including low- and mod19 erate-income neighborhoods.

20 (C) PERFORMANCE.—The program shall

21 include, as appropriate, a method for evaluating

22 a securities company’s record of providing ac23 cess to securities services in each assessment

24 area, including—
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1 (i) the company’s record of opening or

2 closing retail offices in the assessment

3 area;

4 (ii) the extent to which the securities

5 company has adopted effective alternate

6 marketing systems in low- and moderate7 income neighborhoods, such as providing

8 the means for low- and moderate-income

9 individuals to gain electronic access to the

10 company at community centers and similar

11 locations in low- and moderate-income

12 neighborhoods; and

13 (iii) the extent to which the securities

14 company has provided investment edu15 cation and other investment services, such

16 as financial counseling classes, in low- and

17 moderate-income neighborhoods in the as18 sessment area.

19 (3) RATING.—

20 (A) IN GENERAL.—The program shall pro21 vide for—

22 (i) an evaluation and an initial rating

23 of the performance of each securities com24 pany in meeting the obligation established
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1 under subsection (a) in each assessment

2 area of the company; and

3 (ii) an overall rating, based on the ini4 tial ratings pursuant to clause (i) of the

5 overall achievement of the securities com6 pany in meeting such obligation.

7 (B) TREATMENT OF INVESTMENT PRAC8 TICES WITH NEGATIVE IMPACTS.—In the case

9 of any securities company which the Securities

10 and Exchange Commission determines has en11 gaged in securities and investment practices

12 which have a negative impact on any assess13 ment area of the company or has otherwise en14 gaged in any practice or provided any service in

15 a manner which unlawfully discriminates

16 against any person or against low- and mod17 erate-income neighborhoods, the Commission—

18 (i) may not take any such practice

19 into account in assessing the extent to

20 which such company has met its obligation

21 under subsection (a); and

22 (ii) shall reduce the rating that would

23 otherwise obtain under subparagraph (A)

24 with respect to such company, after consid-
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1 ering the extent of such negative or dis2 criminatory practice or service.’’.

3 (C) MAINTENANCE OF CERTAIN

4 RECORDS.—For purposes of determining wheth5 er a securities company engages in any practice

6 or service described in subparagraph (B), the

7 Securities and Exchange Commission may re8 quire, by regulation, securities companies to

9 maintain records of the terms and conditions at

10 which securities products and services were pro11 vided by the company and the terms and condi12 tions at which such securities products or serv13 ices were offered by the company even though

14 no transaction occurred.

15 (4) CONSIDERATION OF SECURITIES COMPANY

16 RATING.—Whenever the Commission considers an

17 application to the Commission by a securities com18 pany, the Securities and Exchange Commission

19 shall—

20 (A) take into account the overall rating of

21 the securities company under this subsection;

22 (B) provide opportunity for comment on

23 such rating; and

24 (C) take into account changes in the com25 munity reinvestment performance of such com-
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1 pany since the last overall rating and the likely

2 future community reinvestment performance of

3 such company.

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

5 the Securities and Exchange Commission in connection

6 with the program under subsection (c) shall be made pub7 licly available by the Commission in a format similar to

8 the format for public disclosure of information under the

9 Home Mortgage Disclosure Act of 1975, as determined

10 to be appropriate by the Commission.

11 SEC. 105. RESPONSIVENESS TO COMMUNITY NEEDS FOR

12 MORTGAGES AND MORTGAGE RELATED

13 SERVICES BY MORTGAGE BANKS.

14 (a) AFFIRMATIVE OBLIGATION.—Each mortgage

15 bank shall have, with respect to each community com16 prising an assessment area of such mortgage bank, a con17 tinuing and affirmative obligation to meet the mortgage

18 credit and mortgage service needs of such communities,

19 including extensions of credit in low- and moderate-income

20 neighborhoods of such communities.

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

22 following definitions shall apply:

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

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

25 community in which such company—
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1 (A) maintains a retail office or is rep2 resented by an agent; or

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

4 total market in housing-related loans.

5 (2) COMMUNITY DEVELOPMENT INVEST6 MENT.—The term ‘‘community development invest7 ment’’ means investment in activities that revitalize

8 and stabilize low- and moderate-income neighbor9 hoods and directly benefit low- and moderate-income

10 individuals, including investment in affordable hous11 ing, community services, small-business development,

12 and economic development.

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

14 bank’’ means any lender who does not accept depos15 its (as defined in section 3 of the Federal Deposit

16 Insurance Act) and originates housing-related loans.

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

18 the Secretary of Housing and Urban Development.

19 (c) PROGRAM.—

20 (1) IN GENERAL.—The Secretary, in consulta21 tion with the Secretary of the Treasury, shall de22 velop a program to ensure that mortgage banks

23 meet the obligations described in subsection (a) and

24 the requirements of the program under this sub25 section.
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1 (2) FACTORS TO BE INCLUDED.—

2 (A) CUSTOMER EVALUATION.—The pro3 gram shall include, as appropriate, a method

4 for evaluating a mortgage bank’s record of

5 helping to meet the mortgage credit and mort6 gage service needs of its assessment area, in7 cluding—

8 (i) the number and distribution of

9 customers throughout the community, in10 cluding low- and moderate-income neigh11 borhoods and the dollar amounts of the

12 mortgage credit extended to such cus13 tomers by the mortgage bank; and

14 (ii) the extent to which the mortgage

15 bank has adopted innovative and flexible

16 marketing methods that facilitate the ex17 tension of mortgage credit on a non18 discriminatory basis to low- and moderate19 income customers.

20 (B) COMMUNITY DEVELOPMENT INVEST21 MENTS.—The program shall include, as appro22 priate, a method for evaluating a mortgage

23 bank’s record of community development invest24 ment in each assessment area, including—
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1 (i) the number and dollar amount of

2 community development investments in the

3 assessment area; and

4 (ii) the responsiveness of the mort5 gage bank, through community develop6 ment investments, to the credit, capital,

7 and community development needs of the

8 assessment area, including low- and mod9 erate-income neighborhoods.

10 (C) PERFORMANCE.—The program shall

11 include, as appropriate, a method for evaluating

12 a mortgage bank’s record of providing access to

13 mortgage credit and mortgage services in each

14 assessment area, including—

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

16 closing retail offices in the assessment

17 area;

18 (ii) the extent to which the mortgage

19 bank has adopted effective alternate mar20 keting systems in low- and moderate-in21 come neighborhoods, such as providing the

22 means for low- and moderate-income indi23 viduals to gain electronic access to the

24 mortgage bank at community centers and
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1 similar locations in low- and moderate-in2 come neighborhoods;

3 (iii) the extent to which the mortgage

4 bank has provided home purchaser and

5 home owner education and other coun6 seling services, such as financial counseling

7 classes, in low- and moderate-income

8 neighborhoods in the assessment area.

9 (iv) the mortgage bank’s market share

10 in neighborhoods of different racial and in11 come characteristics;

12 (v) the number of applications re13 ceived from and loans made to minorities

14 and low- and moderate-income persons;

15 (vi) a comparison of the rate at which

16 the mortgage bank rejects applications

17 from minority and white applicants; and

18 (vii) any evidence of illegal discrimina19 tory credit practices, including

20 prescreening, or offering less favorable

21 loan products to applicants of different ra22 cial backgrounds.

23 (3) RATING.—

24 (A) IN GENERAL.—The program shall pro25 vide for—
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1 (i) an evaluation and an initial rating

2 of the performance of each mortgage bank

3 in meeting the obligation established under

4 subsection (a) in each assessment area of

5 the bank; and

6 (ii) an overall rating, based on the ini7 tial ratings pursuant to clause (i) of the

8 overall achievement of the mortgage bank

9 in meeting such obligation.

10 (B) TREATMENT OF CREDIT PRACTICES

11 WITH NEGATIVE IMPACTS.—In the case of any

12 mortgage bank which the Secretary determines

13 has engaged in credit practices which have a

14 negative impact on any individuals or any as15 sessment area of the company, such as

16 prescreening or predatory mortgage lending, or

17 has otherwise engaged in any practice or pro18 vided any service in a manner which unlawfully

19 discriminates against any person or against

20 low- and moderate-income neighborhoods, the

21 Commission—

22 (i) may not take any such practice

23 into account in assessing the extent to

24 which such company has met its obligation

25 under subsection (a); and
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1 (ii) shall reduce the rating that would

2 otherwise obtain under subparagraph (A)

3 with respect to such company, after consid4 ering the extent of such negative or dis5 criminatory practice or service.

6 (C) MAINTENANCE OF CERTAIN

7 RECORDS.—For purposes of determining wheth8 er a mortgage bank engages in any practice or

9 service described in subparagraph (B), the Sec10 retary may require, by regulation, mortgage

11 banks to maintain records of the terms and

12 conditions at which mortgage loans and other

13 services were provided by the company and the

14 terms and conditions at which such mortgage

15 loans and other products and services were of16 fered by the bank even though no transaction

17 occurred.

18 (d) CONSIDERATION OF MORTGAGE BANK’S RAT19 ING.—

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

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

22 determine to be appropriate, the Secretary shall—

23 (A) review the overall rating of each mort24 gage bank under this subsection;
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1 (B) provide opportunity for comment on

2 such rating; and

3 (C) review changes in the community rein4 vestment performance of such mortgage bank

5 since the last overall rating and the likely fu6 ture community reinvestment performance of

7 such mortgage bank.

8 (2) NOTIFICATION OF UNSATISFACTORY PER9 FORMANCE.—If, in conjunction with a review pursu10 ant to paragraph (1), the Secretary determines that

11 a mortgage bank has failed to meet the bank’s obli12 gations described in subsection (a) and the require13 ments of the program under this subsection or failed

14 to make satisfactory improvements in meeting such

15 obligations and requirements, the Secretary shall no16 tify the mortgage bank of such determination, de17 scribing the conditions giving rise to the notice.

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

20 receipt by a mortgage bank of a notice given under

21 paragraph (2) (or such additional period as the Sec22 retary may permit), the mortgage bank shall execute

23 an agreement with the Secretary to comply with the

24 obligations and requirements applicable to the mort25 gage bank under this section.
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1 (4) SECRETARY MAY IMPOSE LIMITATIONS.—

2 Until the conditions described in a notice to a mort3 gage bank under paragraph (2) are corrected, the

4 Secretary may impose such limitations on the extent

5 to which mortgage loans originated, held, or serviced

6 by such mortgage bank may be acquired by the Fed7 eral Home Mortgage Corporation or the Federal Na8 tional Mortgage Association as the Secretary deter9 mines to be appropriate under the circumstances

10 and consistent with the purposes of this section.

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

12 described in a notice to a mortgage bank under

13 paragraph (2) are not corrected within 180 days

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

15 notice under paragraph (2), the Secretary shall pro16 hibit the Federal Home Mortgage Corporation and

17 the Federal National Mortgage Association from ac18 quiring any mortgage loan originated, held, or serv19 iced by such mortgage bank.

20 (6) CONSULTATION.—In taking any action

21 under this subsection, the Secretary shall consult

22 with all relevant Federal and State regulatory agen23 cies and authorities.
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1 SEC. 106. RESPONSIVENESS TO COMMUNITY NEEDS FOR IN2 SURANCE SERVICES.

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

4 section is to recognize that each insurance company has,

5 with respect to each community comprising an assessment

6 area of such company, a continuing and affirmative obliga7 tion to meet the need for insurance services in such com8 munities, including the needs of low- and moderate-income

9 neighborhoods and persons of modest means.

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

11 following definitions shall apply:

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

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

14 each community in which such company—

15 (A) maintains a retail office or is rep16 resented by an agent; or

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

18 total market in insurance.

19 (2) COMMUNITY DEVELOPMENT INVEST20 MENT.—The term ‘‘community development invest21 ment’’ means investment in activities that revitalize

22 and stabilize low- and moderate-income neighbor23 hoods and directly benefit low- and moderate-income

24 individuals, including investment in affordable hous25 ing, community services, small-business development,

26 and economic development.
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1 (3) INSURANCE COMPANY.—The term ‘‘insur2 ance company’’ includes any person engaged in the

3 business of insurance to the extent of such activities.

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

5 the Secretary of Housing and Urban Development.

6 (c) PROGRAM.—

7 (1) IN GENERAL.—The Secretary, in consulta8 tion with the Secretary of the Treasury, shall de9 velop a program to ensure that insurance companies

10 meet the obligations described in subsection (a) and

11 the requirements of the program under this sub12 section.

13 (2) FACTORS TO BE INCLUDED.—

14 (A) CUSTOMER EVALUATION.—The pro15 gram shall include, as appropriate, a method

16 for evaluating an insurance company’s record of

17 helping to meet the insurance needs of its as18 sessment area, including—

19 (i) the number and distribution of

20 customers throughout the community, in21 cluding low- and moderate-income neigh22 borhoods and the dollar amounts of the in23 surance policies held by such customers;

24 and
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1 (ii) the extent to which the company

2 has adopted innovative and flexible mar3 keting methods that facilitate the sale of

4 insurance on a nondiscriminatory basis to

5 low- and moderate-income customers.

6 (B) COMMUNITY DEVELOPMENT INVEST7 MENTS.—The program shall include, as appro8 priate, a method for evaluating an insurance

9 company’s record of community development in10 vestment in each assessment area, including—

11 (i) the number and dollar amount of

12 community development investments in the

13 assessment area; and

14 (ii) the responsiveness of the insur15 ance company, through community devel16 opment investments, to the credit, capital,

17 and community development needs of the

18 assessment area, including low- and mod19 erate-income neighborhoods.

20 (C) PERFORMANCE.—The program shall

21 include, as appropriate, a method for evaluating

22 an insurance company’s record of providing ac23 cess to insurance services in each assessment

24 area, including—
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1 (i) the company’s record of opening or

2 closing retail offices or affiliating with

3 agents in the assessment area;

4 (ii) the extent to which the insurance

5 company has adopted effective alternate

6 marketing systems in low- and moderate7 income neighborhoods, such as providing

8 the means for low- and moderate-income

9 individuals to gain electronic access to the

10 company at community centers and similar

11 locations in low- and moderate-income

12 neighborhoods; and

13 (iii) the extent to which the insurance

14 company has provided insurance education

15 and other insurance services, such as fi16 nancial counseling classes, in low- and

17 moderate-income neighborhoods in the as18 sessment area.

19 (3) RATING.—The program shall provide for—

20 (i) an evaluation and an initial rating

21 of the performance of each insurance com22 pany in meeting the obligation established

23 under subsection (a) in each assessment

24 area of the company; and
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1 (ii) an overall rating, based on the ini2 tial ratings pursuant to clause (i) of the

3 overall achievement of the insurance com4 pany in meeting such obligation.

5 (B) TREATMENT OF INSURANCE PRAC6 TICES WITH NEGATIVE IMPACTS.—In the case

7 of any insurance company which the Secretary

8 determines has engaged in practices which have

9 a negative impact on any assessment area of

10 the company or has otherwise engaged in any

11 practice or provided any service in a manner

12 which unlawfully discriminates against any per13 son or against low- and moderate-income neigh14 borhoods, the Commission—

15 (i) may not take any such practice

16 into account in assessing the extent to

17 which such company has met its obligation

18 under subsection (a); and

19 (ii) shall reduce the rating that would

20 otherwise obtain under subparagraph (A)

21 with respect to such company after consid22 eration of the extent of such negative or

23 discriminatory practice or service.

24 (C) MAINTENANCE OF CERTAIN

25 RECORDS.—For purposes of determining wheth-
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1 er an insurance company engages in any prac2 tice or service described in subparagraph (B),

3 the Secretary may require, by regulation, insur4 ance companies to maintain records of the

5 terms and conditions at which insurance prod6 ucts and services were provided by the company

7 and the terms and conditions at which such in8 surance products or services were offered by the

9 company even though no transaction occurred.

10 (d) CONSIDERATION OF INSURANCE COMPANY’S

11 RATING.—

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

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

14 determine to be appropriate, the Secretary shall—

15 (A) review the overall rating of each insur16 ance company under this subsection;

17 (B) provide opportunity for comment on

18 such rating; and

19 (C) review changes in the community rein20 vestment performance of such insurance com21 pany since the last overall rating and the likely

22 future community reinvestment performance of

23 such insurance company.

24 (2) NOTIFICATION OF UNSATISFACTORY PER25 FORMANCE.—If, in conjunction with a review pursu-
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1 ant to paragraph (1), the Secretary determines that

2 an insurance company has failed to meet the com3 pany’s obligations described in subsection (a) and

4 the requirements of the program under this sub5 section or failed to make satisfactory improvements

6 in meeting such obligations and requirements, the

7 Secretary shall notify the insurance company and

8 each appropriate State insurance regulator of such

9 determination, describing the conditions giving rise

10 to the notice.

11 (3) AGREEMENT TO CORRECT CONDITIONS RE12 QUIRED.—Not later than 45 days after the date of

13 receipt by an insurance company of a notice given

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

15 the Secretary may permit), the insurance company

16 shall execute an agreement with the Secretary to

17 comply with the obligations and requirements appli18 cable to the insurance company under this section.

19 (4) SECRETARY MAY IMPOSE LIMITATIONS.—

20 Until the conditions described in a notice to an in21 surance company under paragraph (2) are corrected,

22 the Secretary may impose such limitations on the ex23 tent to which mortgage loans secured by real prop24 erty insured by such insurance company may be ac25 quired by the Federal Home Mortgage Corporation
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1 or the Federal National Mortgage Association as the

2 Secretary determines to be appropriate under the

3 circumstances and consistent with the purposes of

4 this section.

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

6 described in a notice to a mortgage bank under

7 paragraph (2) are not corrected within 180 days

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

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

10 (A) prohibit the Federal Home Mortgage

11 Corporation and the Federal National Mortgage

12 Association from acquiring any mortgage loan

13 secured by real property insured by such insur14 ance company;

15 (B) publish notice of such failure to cor16 rect in the Federal Register; and

17 (C) notify each appropriate State insur18 ance regulator of such failure to correct.

19 (6) CONSULTATION.—In taking any action

20 under this subsection, the Secretary shall consult

21 with all relevant Federal and State regulatory agen22 cies and authorities.

23 (e) HEALTH AND LIFE INSURANCE LINES NOT IN24 CLUDED.—This section and section 107 shall not apply
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1 to life or health lines of insurance or to insurance compa2 nies that provide only life or health insurance products.

3 SEC. 107. SATISFACTORY RATINGS REQUIRED BY SECURI4 TIES COMPANY, MORTGAGE BANK, AND IN5 SURANCE COMPANY AFFILIATES OF FINAN6 CIAL HOLDING COMPANIES.

7 (a) IN GENERAL.—Section 4(l)(1) of the Bank Hold8 ing Company Act of 1956 (12 U.S.C. 1843(l)(1)) is

9 amended—

10 (1) by striking ‘‘and’’ at the end of subpara11 graph (B);

12 (2) by redesignating subparagraph (C) as sub13 paragraph (F); and

14 (3) by inserting after subparagraph (B) the fol15 lowing new subparagraphs:

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

17 of the bank holding company have a satisfac18 tory rating of meeting community needs under

19 section 104 of the Community Reinvestment

20 Modernization Act of 2001;

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

22 the bank holding company have a satisfactory

23 rating of meeting community needs under sec24 tion 105 of the Community Reinvestment Mod25 ernization Act of 2001;
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1 ‘‘(E) all of the insurance company affili2 ates of the bank holding company have a satis3 factory rating of meeting community needs

4 under section 106 of the Community Reinvest5 ment Modernization Act of 2001; and’’.

6 (b) TECHNICAL AND CONFORMING AMENDMENTS.—

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

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

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

10 4(l)(1)(F)’’.

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

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

13 amended by striking ‘‘section 4(l)(1)(C)’’ and insert14 ing ‘‘section 4(l)(1)(F)’’.

15 TITLE II—DATA DISCLOSURE

16 REQUIREMENTS

17 Subtitle A—Disclosure of Insurance

18 Availability and Insurer Invest19 ment Information

20 SEC. 201. SHORT TITLE.

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

22 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 (c) HEALTH AND LIFE INSURANCE LINES NOT IN19 CLUDED.—This title shall not apply to life or health lines

20 of insurance or to insurers that provide only life or health

21 insurance products.

22 SEC. 203. REPORTING OF NONCOMMERCIAL INSURANCE IN23 FORMATION.

24 (a) IN GENERAL.—The requirements established pur25 suant to section 202 to carry out this section shall—
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1 (1) be designed to ensure that information is

2 submitted and compiled under this section as may be

3 necessary to permit analysis and comparison of—

4 (A) the availability and affordability of in5 surance coverage and the quality or type of in6 surance coverage, by census tract, including

7 low- and moderate-income neighborhoods, and

8 the race and gender of policyholders; and

9 (B) the location of the principal place of

10 business of insurance agents and the race of

11 such agents, and the location of the principal

12 place of business of insurance agents termi13 nated and the race of such agents, by census

14 tract, including low- and moderate-income

15 neighborhoods; and

16 (2) specify the data elements required to be re17 ported under this section and require uniformity in

18 the definitions of the data elements.

19 (b) INSURERS.—

20 (1) AGGREGATE INFORMATION.—The regula21 tions issued under section 203 shall require that

22 each insurer for a designated line of insurance under

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

24 compile and submit to the Secretary, for each an25 nual reporting period—
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1 (A) the total number of policies issued in

2 such line, total exposures covered by such poli3 cies, and total amount of premiums for such

4 policies, by designated line and by census tract,

5 including low- and moderate-income neighbor6 hoods, in which the insured risk is located;

7 (B) the total number of cancellations and

8 nonrenewals (expressed in terms of policies or

9 exposures, as determined by the Secretary), by

10 designated line and by census tract, including

11 low- and moderate-income neighborhoods, in

12 which the insured risk is located;

13 (C) the total number and racial character14 istics of—

15 (i) licensed agents of such insurer sell16 ing insurance in the designated line, by

17 census tract, including low- and moderate18 income neighborhoods, in which the agent’s

19 principal place of business is located; and

20 (ii) such agents who were terminated

21 by the insurer, by census tract in which

22 the agent’s principal place of business was

23 located; and

24 (D) for such designated line of insurance,

25 information that will enable the Secretary to as-
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1 sess the aggregate loss experience for the in2 surer, by census tract, including low- and mod3 erate-income neighborhoods, in which the in4 sured risk is located.

5 (2) SPECIFICATION OF INFORMATION FOR

6 ITEMIZED DISCLOSURE.—

7 (A) IN GENERAL.—The regulations issued

8 under section 202 regarding annual reporting

9 requirements for insurers for a designated line

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

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

12 issued under the designated line or exposure

13 units covered by such policies, as determined by

14 the Secretary—

15 (i) specify the data elements that shall

16 be submitted;

17 (ii) provide for the submission of in18 formation on an individual insurer basis;

19 (iii) provide for the submission of the

20 information with the least burden on insur21 ers, particularly small insurers, and insur22 ance agents;

23 (iv) take into account existing statis24 tical reporting systems in the insurance in25 dustry;
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1 (v) require reporting by census tract,

2 including low- and moderate-income neigh3 borhoods, in which the insured risk is lo4 cated;

5 (vi) provide for the submission of in6 formation that—

7 (I) identifies the designated line,

8 and subline or coverage type; and

9 (II) where applicable, distin10 guishes between the type of policy

11 under each such subline or coverage

12 type that provides full replacement

13 cost and all other bases for computing

14 claims, such as actual cash value and

15 fair market value;

16 (vii) provide for the submission of in17 formation that distinguishes policies writ18 ten in a residual market from policies writ19 ten in the voluntary market;

20 (viii) specify—

21 (I) whether information shall be

22 submitted on the basis of policy or ex23 posure unit; and

24 (II) whether information, when

25 submitted, shall be aggregated by like
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1 policyholders with like policies, except

2 that the Secretary shall not permit

3 such aggregation if it will adversely

4 affect the accuracy of the information

5 reported;

6 (ix) in addition to reporting approvals,

7 provide for the submission of information

8 regarding the number of denials, cancella9 tions, and nonrenewals of policies under

10 the designated line by census tract in

11 which the insured risk is located, by race,

12 gender, and income of the policyholder (if

13 known to the insurer), and by whether the

14 policy was issued in a voluntary or residual

15 market; and

16 (x) provide for the submission of in17 formation on the racial characteristics,

18 gender, and income levels of policyholders

19 at the level of detail comparable to that re20 quired by the Home Mortgage Disclosure

21 Act of 1975 (and the regulations issued

22 thereunder).

23 (B) RULES REGARDING OBTAINING RACIAL

24 INFORMATION.—
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1 (i) WRITING REQUIREMENT.—The in2 formation specified in subparagraph (A)(x)

3 relating to the racial characteristics of ap4 plicants for, and policyholders of, insur5 ance shall be obtained only in accordance

6 with the procedures for requesting and re7 cording racial information established in

8 Regulation C of the Board of Governors of

9 the Federal Reserve System under the

10 Home Mortgage Disclosure Act of 1975, as

11 in effect on the date of the enactment of

12 this Act.

13 (ii) NOTICE OF VOLUNTARY NATURE

14 OF QUESTION.—Any such written question

15 shall clearly indicate that a response to the

16 question is voluntary on the part of the ap17 plicant or policyholder, but encouraged,

18 and that the information is being re19 quested by the Federal Government to

20 monitor the availability and affordability of

21 insurance.

22 (iii) PROVISION OF INFORMATION BY

23 AGENT OR INSURER.—If an applicant for,

24 or policyholder of, insurance declines to

25 provide such information, the agent or in-
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1 surer for such insurance may provide such

2 information.

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

4 insurer for a designated line shall submit—

5 (A) information required under subpara6 graphs (A), (B), and (D) of paragraph (1) and

7 information required pursuant to paragraph

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

9 located within each census tract any part of

10 which is located in a State for which the insurer

11 is offering the designated line; and

12 (B) information required under paragraph

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

14 SEC. 204. REPORTING OF RURAL INSURANCE INFORMA15 TION.

16 (a) IN GENERAL.—The Secretary shall, by regula17 tion, establish requirements for insurers to annually com18 pile and submit to the Secretary information concerning

19 the availability, affordability, and quality or type of insur20 ance in rural areas and to small businesses.

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

22 shall provide that the information compiled and submitted

23 under this section shall be compiled and submitted on the

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

25 located.
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1 SEC. 205. WAIVER OF REPORTING REQUIREMENTS.

2 (a) WAIVER FOR STATES COLLECTING EQUIVALENT

3 INFORMATION.—

4 (1) AUTHORITY.—Subject to the requirements

5 under this section, the Secretary shall provide, by

6 regulation, for the waiver of the applicability of the

7 provisions of sections 203 and 204 for each insurer

8 transacting business within a State referred to in

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

10 required to be submitted under such sections that

11 relates to agents or insured risks located in the

12 State.

13 (2) REQUIREMENTS.—The Secretary may make

14 a waiver pursuant to paragraph (1) only with re15 spect to a State that the Secretary determines has

16 in effect a law or other requirement that—

17 (A) requires insurers to submit to the

18 State information that is at least the same or

19 equivalent to the information that is required to

20 be submitted to the Secretary pursuant to sec21 tions 203 and 204;

22 (B) provides for adequate enforcement of

23 such law or other requirements; and

24 (C) provides for the same annual reporting

25 period used by the Secretary under this title

26 and for submission of the information to the
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1 Secretary in a timely fashion, as determined by

2 the Secretary.

3 (3) DURATION.—A waiver pursuant to para4 graph (1) may remain in effect only during the pe5 riod for which the State law or other requirement re6 quired under paragraph (2) remains in effect.

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

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

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

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

11 made, the provisions of this title requiring submission of

12 information to the Secretary regarding such tract or area

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

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

15 been made.

16 (c) AUTHORITY FOR SECRETARY TO OBTAIN INFOR17 MATION DIRECTLY FROM INSURERS.—If the State for

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

19 does not submit to the Secretary the information required

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

21 not complete, the Secretary shall require the insurers

22 transacting business within the State to submit such infor23 mation directly to the Secretary.
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1 SEC. 206. REPORTING BY PRIVATE MORTGAGE INSURERS.

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

3 Financial Institutions Examination Council shall deter4 mine the extent to which each insurer providing private

5 mortgage insurance is making available to the public and

6 submitting to the appropriate agency information regard7 ing such insurance that is equivalent to the information

8 regarding mortgages required to be reported under the

9 Home Mortgage Disclosure Act of 1975.

10 (b) REPORTING UNDER THIS TITLE.—

11 (1) CERTIFICATION OF NONCOMPLIANCE.—If,

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

13 such Council determines that any insurer providing

14 private mortgage insurance is not making available

15 to the public or submitting the information referred

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

17 available or submitted is not equivalent information

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

19 notify the insurer of such noncompliance. If, after

20 the expiration of a reasonable period of time, the in21 surer has not remedied such noncompliance to the

22 satisfaction of the Council, then the Council shall

23 immediately certify such noncompliance to the Sec24 retary.

25 (2) REQUIREMENT.—Upon the receipt of a cer26 tification under paragraph (1), the Secretary shall,
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1 by order, require such insurer to submit to the Sec2 retary information regarding such insurance that

3 complies with the provisions of section 203 that are

4 applicable to such insurance.

5 SEC. 207. REPORTING OF INFORMATION REGARDING IN6 VESTMENTS BY INSURERS.

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

8 Urban Development shall, by regulation, require that each

9 insurer that makes an investment in a property or busi10 ness shall compile and submit to the Secretary for each

11 annual reporting period, the following information:

12 (1) DIRECT LOANS.—

13 (A) COMMERCIAL REAL ESTATE LOANS.—

14 The total number of loans for the purchase of

15 commercial real estate made by the insurer, the

16 aggregate amount of such loans, and the

17 amount of each such loan, by census tract, in18 cluding low- and moderate-income neighbor19 hoods, in which the real estate for which the

20 loan was made is located.

21 (B) SINGLE-FAMILY MORTGAGES.—The

22 total number of mortgage loans for the pur23 chase of 1- to 4-family dwellings made by the

24 insurer, the aggregate amount of such loans,

25 and the amount of each such loan, by census
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1 tract, including low- and moderate-income

2 neighborhoods, in which the dwelling for which

3 the loan was made is located, which information

4 shall be disaggregated by racial characteristics,

5 income level, and gender of the borrower under

6 the loan.

7 (C) COMMERCIAL AND INDUSTRIAL

8 LOANS.—The total number of commercial and

9 industrial loans made by the insurer, the aggre10 gate amount of such loans, and the amount of

11 each such loan, by census tract, including low12 and moderate-income neighborhoods, in which

13 the property or business involved in the loan is

14 located, which information shall be

15 disaggregated by the size of business of the bor16 rower under the loan and by the ownership

17 characteristic of the business, which shall be

18 classified as either minority-owned, women19 owned, or otherwise-owned.

20 (2) LOAN PURCHASES.—

21 (A) COMMERCIAL REAL ESTATE LOANS.—

22 The total number of loans for the purchase of

23 commercial real estate purchased by the in24 surer, the aggregate amount of such loans, and

25 the amount of each such loan, by census tract,
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1 including low- and moderate-income neighbor2 hoods, in which the real estate for which the

3 loan was made is located.

4 (B) SINGLE-FAMILY MORTGAGES.—The

5 total number of mortgage loans for the pur6 chase of 1- to 4-family dwellings purchased by

7 the insurer, the aggregate amount of such

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

9 census tract, including low- and moderate-in10 come neighborhoods, in which the dwelling for

11 which the loan was made is located, which in12 formation shall be disaggregated by racial char13 acteristics, income level, and gender of the bor14 rower under the loan.

15 (C) COMMERCIAL AND INDUSTRIAL

16 LOANS.—The total number of commercial and

17 industrial loans purchased by the insurer, the

18 aggregate amount of such loans, and the

19 amount of each such loan, by census tract, in20 cluding low- and moderate-income neighbor21 hoods, in which the property or business in22 volved in the loan is located, which information

23 shall be disaggregated by the size of business of

24 the borrower under the loan and by the owner25 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 issue

19 any regulations required under this title and any

20 other regulations that may be necessary to carry out

21 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 busi25 ness—
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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 busi10 ness—

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 consider2 ation—

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 2001.’’

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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