I 

116TH CONGRESS 

2D SESSION H. R. 8039 

To require the Bureau of Consumer Financial Protection to conduct an 

assessment of the use of certain educational data in determining the 

creditworthiness of an applicant, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

AUGUST 14, 2020 

Ms. FUDGE (for herself and Mrs. BEATTY) introduced the following bill; which 

was referred to the Committee on Financial Services 

A BILL 

To require the Bureau of Consumer Financial Protection 

to conduct an assessment of the use of certain educational data in determining the creditworthiness of an 

applicant, 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, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Examining Edu5 cational Redlining in Lending Act’’. 

6 SEC. 2. ASSESSMENT OF CERTAIN EDUCATIONAL DATA. 

7 (a) ASSESSMENT.—Not later than 180 days after the 

8 date of the enactment of this Act and annually thereafter, 


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1 the Bureau of Consumer Financial Protection (referred to 

2 in this section as the ‘‘Bureau’’) shall, in coordination with 

3 relevant executive agencies and national civil rights stake4 holders, assess— 

5 (1) the use of certain educational data by cov6 ered persons in determining the creditworthiness of 

7 an applicant; 

8 (2) the use of an underwriting process that in9 volves gathering data points and creating applicant 

10 profiles, including automated or algorithmic proc11 esses, and the risks of such use, by covered persons 

12 to determine the creditworthiness of an applicant; 

13 and 

14 (3) what policies and guidelines are in place to 

15 ensure decisions do not result in a disparate impact 

16 on a protected class. 

17 (b) REPORT TO CONGRESS.—Not later than 60 days 

18 after the completion of each assessment required under 

19 subsection (a) and annually thereafter, the Bureau shall 

20 submit to the Committee on Financial Services of the 

21 House of Representatives and the Committee on Banking, 

22 Housing, and Urban Affairs of the Senate the findings 

23 of such assessment and any recommendations based on 

24 such findings. 


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1 (c) PUBLICATION.—Not later than 30 days after the 

2 completion of the assessment required under subsection 

3 (a), the Bureau shall make available on a publicly acces4 sible website— 

5 (1) the findings of the assessment under sub6 section (a); 

7 (2) a list of all covered persons that use certain 

8 educational data; and 

9 (3) a list of all covered persons that use an un10 derwriting process that involves gathering data 

11 points and creating applicant profiles, including 

12 automated or algorithmic processes, to determine the 

13 creditworthiness of an applicant. 

14 (d) DEFINITIONS.—In this section: 

15 (1) APPLICANT’S BACKGROUND.—The term 

16 ‘‘applicant’s background’’ includes data related to or 

17 derived from the following: 

18 (A) Attendance at an academic institution. 

19 (B) Academic majors pursued at an aca20 demic institution. 

21 (C) Grades or test scores from or used for 

22 admission into an academic institution. 

23 (D) Educational attainment. 

24 (2) CERTAIN EDUCATIONAL DATA.—The term 

25 ‘‘certain educational data’’ means data, including 


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1 non-individualized data, that indicates or is created, 

2 derived, or inferred from an applicant’s background 

3 including whether an applicant has attended any of 

4 the following: 

5 (A) An eligible institution. 

6 (B) A junior or community college. 

7 (3) COVERED PERSON.—The term ‘‘covered 

8 person’’ has the meaning given such term in section 

9 1002 of the Consumer Financial Protection Act of 

10 2010 (12 U.S.C. 5481). 

11 (4) ELIGIBLE INSTITUTION.—The term ‘‘eligi12 ble institution’’ has the meaning given that term in 

13 section 371(a) of the Higher Education Act of 1965 

14 (20 U.S.C. 1067q(a)). 

15 (5) JUNIOR OR COMMUNITY COLLEGE.—The 

16 term ‘‘junior or community college’’ has the meaning 

17 given that term in section 312(f) of the Higher Edu18 cation Act of 1965 (20 U.S.C. 1058(f)). 

Æ 


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