I 

111TH CONGRESS 

1ST SESSION H. R. 1479 

To enhance the availability of capital, credit, and other banking and financial 

services for all citizens and communities, to ensure that community 

reinvestment requirements are updated to account for changes in the 

financial industry and that reinvestment requirements keep 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 12, 2009 

Ms. EDDIE BERNICE JOHNSON of Texas introduced the following bill; which 

was referred to the Committee on Financial Services, and in addition to 

the Committee on Rules, for a period to be subsequently determined by 

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

A BILL 

To enhance the availability of capital, credit, and other banking and financial services for all citizens and communities, to ensure that community reinvestment requirements are updated to account for changes in the financial industry and that reinvestment requirements keep 

pace as banks, securities firms, and other financial service providers become affiliates as a result of the enactment of the Gramm-Leach-Bliley Act, and for other purposes. 


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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

5 ‘‘Community Reinvestment Modernization Act of 2009’’. 

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

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Findings. 

Sec. 3. Purposes. 

TITLE I—MODERNIZATION OF COMMUNITY REINVESTMENT ACT 

OF 1977 AND COMMUNITY SERVICE OBLIGATIONS 

Sec. 101. Repeal of recent regulatory changes to the application of the Community Reinvestment Act of 1977 and restoration of comprehensive examinations. 

Sec. 102. Extension of community reinvestment obligations within a financial 

holding company. 

Sec. 103. Provisions relating to improved responsiveness of insured depository 

institutions to Community Reinvestment Act of 1977. 

Sec. 104. Reduction of CRA rating due to predatory lending and other negative 

credit practices. 

Sec. 105. Small business loan data collection. 

Sec. 106. Data collection of deposit accounts. 

Sec. 107. Responsiveness to community needs for securities and investment 

services. 

Sec. 108. Responsiveness to community needs for mortgages and mortgage related services by mortgage banks. 

Sec. 109. Responsiveness to community needs for insurance services. 

Sec. 110. Satisfactory ratings required by securities company, mortgage bank, 

and insurance company affiliates of financial holding companies. 

Sec. 111. Responsiveness to community needs by credit unions. 

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. 


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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 

Sec. 221. Maintenance and disclosure of information by the Financial Institutions Examination Council. 

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. Branch closure requirements. 

Sec. 305. CRA examination schedule for small banks. 

Sec. 306. CRA sunshine requirements. 

Sec. 307. Continuing community reinvestment requirement for financial holding 

companies. 

Sec. 308. Changes in reporting requirements under the Home Mortgage Disclosure Act of 1975. 

Sec. 309. Annual report and congressional hearings. 

1 SEC. 2. FINDINGS. 

2 The Congress finds as follows: 

3 (1) Because the Community Reinvestment Act 

4 of 1977 requires that community needs be met in a 

5 safe and sound manner, the Act must be updated 

6 and applied to nonbank financial institutions as well 

7 as depository institutions. 

8 (2) The Community Reinvestment Act of 1977 

9 promotes community development through financing 

10 activities including affordable housing (rental and 

11 homeowner), small businesses, and economic devel12 opment. 


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1 (3) It is necessary to increase homeownership 

2 and small business ownership for low- and moderate3 income borrowers and persons of color through safe 

4 and sound lending. It also is necessary to close the 

5 wealth gap in the United States and to increase ac6 cess to insurance and securities products. 

7 (4) The Community Reinvestment Act of 1977 

8 has been effective in increasing access to credit and 

9 capital because it imposes an affirmative and con10 tinual obligation on banks and thrifts to meet the 

11 needs of the local communities in which they are 

12 chartered. 

13 (5) The Community Reinvestment Act of 1977 

14 has leveraged more than $6,000,000,000,000 in 

15 loans and investments for low- and moderate-income 

16 communities according to the National Community 

17 Reinvestment Coalition. 

18 (6) Major studies, including those conducted by 

19 the Secretary of the Treasury, the Board of Gov20 ernors of the Federal Reserve System, and Harvard 

21 University, have found that the Community Rein22 vestment Act of 1977 increases home mortgage lend23 ing to minority and low- and moderate-income com24 munities and that this lending is profitable. 


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1 (7) The Community Reinvestment Act of 1977 

2 has leveraged a tremendous increase in home mort3 gage lending to minority and low- and moderate-in4 come borrowers as compared to Whites and middle5 income borrowers; from 1993 through 2002, home 

6 mortgage lending has increased by 79.5 percent to 

7 Blacks, by 185.8 percent to Hispanics, by 29.6 per8 cent to Whites, by 90.6 percent to low- and mod9 erate-income borrowers, and by 51.4 percent to mid10 dle-income borrowers. 

11 (8) As recorded by data required by the Com12 munity Reinvestment Act of 1977, the annual dollar 

13 amount of community development loans more than 

14 tripled—from $17,700,000,000 in 1996 to 

15 $63,800,000,000 in 2007. Depository institutions 

16 also made 14,800,000 small business loans totaling 

17 more than $581,000,000,000 in low- and moderate18 income neighborhoods from 1996 through 2007. 

19 (9) Yet, inequalities in access to credit and bar20 riers to healthy product choice remain: the Board of 

21 Governors of the Federal Reserve System documents 

22 that lenders covered by the Community Reinvest23 ment Act of 1977 are less likely to offer high-cost 

24 and risky loan products such as piggyback loans 

25 than lenders which are not subject to such Act. 


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1 (10) The disproportionate amount of high-cost 

2 lending in minority and working class communities 

3 would be reduced if the Community Reinvestment 

4 Act of 1977 was expanded to non-bank institutions 

5 currently not covered by the Act. 

6 (11) Wealth inequalities are stark, and could be 

7 reduced in reinvestment requirements were extended 

8 to other segments of the financial industry. 

9 (12) In 2002, the median net worth for His10 panic and African-American households was $7,932 

11 and $5,988 respectively, while, in sharp contrast, the 

12 median net worth for White households was 

13 $88,651. 

14 (13) Access to insurance remains unequal, as 

15 research conducted by the chief economist of the Na16 tional Association of Insurance Commissioners found 

17 that after controlling for risk of loss, a 10 percent18 age point increase in the number of minorities in a 

19 zip code is associated with a 2 percentage point in20 crease in the number of ‘‘FAIR plans’’, which are 

21 Government-sponsored insurance plans of last resort 

22 for those who cannot obtain insurance in the private 

23 market. 

24 (14) In order to increase access to credit, 

25 wealth and insurance, it is necessary to modernize 


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1 the Community Reinvestment Act of 1977 to reflect 

2 shifting trends in the financial services industry as 

3 mergers among banks and non-bank financial insti4 tutions as well as changes in banking and lending 

5 practices. 

6 SEC. 3. PURPOSES. 

7 The purposes of this Act are as follows: 

8 (1) To enhance the availability of financial serv9 ices to citizens of all economic circumstances and in 

10 all geographic areas. 

11 (2) To enhance the ability of financial institu12 tions to meet the capital and credit needs, and needs 

13 for other banking and financial services of all citi14 zens and communities, including and especially mi15 nority and low- and moderate-income communities 

16 and populations. 

17 (3) To ensure that community reinvestment 

18 keeps pace with developments in the financial indus19 try and with the affiliation of banks, securities 

20 firms, and other financial service providers, as pro21 vided by the Gramm-Leach-Bliley Act. 


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1 TITLE I—MODERNIZATION OF 

2 COMMUNITY REINVESTMENT 

3 ACT OF 1977 AND COMMUNITY 

4 SERVICE OBLIGATIONS 

5 SEC. 101. REPEAL OF RECENT REGULATORY CHANGES TO 

6 THE APPLICATION OF THE COMMUNITY RE7 INVESTMENT ACT OF 1977 AND RESTORATION 

8 OF COMPREHENSIVE EXAMINATIONS. 

9 (a) IN GENERAL.—The revisions to the regulations 

10 of the Comptroller of the Currency, the Board of Gov11 ernors of the Federal Reserve System, the Federal Deposit 

12 Insurance Corporation, and the Director of the Office of 

13 Thrift Supervision that are described in subsection (b) 

14 shall cease to be effective as of such date and the regula15 tions of such agencies in effect before the date of the pub16 lication of the regulations described in subsection (b) shall 

17 apply after such date of enactment. 

18 (b) REGULATIONS DESCRIBED.—The regulations re19 ferred to in subsection (a) are any of the following regula20 tions: 

21 (1) The regulations published jointly in final 

22 form on August 2, 2005, 70 Federal Register 44256 

23 et seq.— 


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1 (A) by the Comptroller of the Currency, 

2 amending 12 Code of Federal Regulations part 

3 25; 

4 (B) by the Board of Governors of the Fed5 eral Reserve System, amending 12 Code of Fed6 eral Regulations part 228; and 

7 (C) by the Federal Deposit Insurance Cor8 poration, amending 12 Code of Federal Regula9 tions part 345. 

10 (2) The regulation published as a final regula11 tion on August 18, 2004, 69 Federal Register 

12 51155, et seq., by the Director of the Office of 

13 Thrift Supervision, amending 12 Code of Federal 

14 Regulations part 563e. 

15 (3) The regulation published as a final regula16 tion on March 2, 2005, 70 Federal Register 10023, 

17 et seq., by the Director of the Office of Thrift Su18 pervision, also amending 12 Code of Federal Regula19 tions part 563e. 

20 (4) The regulation published as a final regula21 tion on March 22, 2007, 72, Federal Register 

22 13429, et seq., by the Director of the Office of 

23 Thrift Supervision, also amending 12 Code of Fed24 eral Regulations part 563e. 


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1 SEC. 102. EXTENSION OF COMMUNITY REINVESTMENT OB2 LIGATIONS WITHIN A FINANCIAL HOLDING 

3 COMPANY. 

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

5 1956 (12 U.S.C. 1843(l)) is amended by adding at the 

6 end the following new paragraph: 

7 ‘‘(4) COMMUNITY NEEDS.— 

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

9 of any bank holding company that engage in 

10 lending or offer banking products or services, 

11 and all other nonbank financial institution af12 filiates of any bank holding company (including 

13 insurance companies and securities firms), shall 

14 be subject to the Community Reinvestment Act 

15 of 1977 in accordance with this paragraph and 

16 in the same manner as a regulated financial in17 stitution (as defined in such Act) and the 

18 record of any such affiliate in meeting commu19 nity credit, investment, and consumer needs 

20 shall be taken into account by the Federal regu21 latory agency with jurisdiction over the affili22 ate’s bank holding company in the course of re23 viewing the activities of the bank holding com24 pany or any application by such affiliate. 


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1 ‘‘(B) BANKING PRODUCTS AND SERVICES

2 DEFINED.—For purposes of this paragraph, the 

3 term ‘banking products and services’ includes— 

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

5 section 3 of the Federal Deposit Insurance 

6 Act) and related deposit services; 

7 ‘‘(ii) consumer loans and extensions of 

8 credit and the servicing such loans and ex9 tensions of credit; 

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

11 construct, improve, or repair domestic resi12 dential housing or manufactured housing, 

13 including single-family and multifamily 

14 residential housing loans and home-equity 

15 loans, and the servicing of such loans; 

16 ‘‘(iv) small business and commercial 

17 loans and the servicing of such loans; and 

18 ‘‘(v) checking accounts, savings ac19 counts, and related accounts or instru20 ments, including accounts from which the 

21 owner may make withdrawals by negotiable 

22 or transferable instruments for the purpose 

23 of making payments to third parties.’’. 


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1 SEC. 103. PROVISIONS RELATING TO IMPROVED RESPON2 SIVENESS OF INSURED DEPOSITORY INSTITU3 TIONS TO COMMUNITY REINVESTMENT ACT 

4 OF 1977. 

5 (a) RATING REQUIRED FOR EACH STATE, METRO6 POLITAN AREA, AND SERVICE AREA.—Section 807(b)(1) 

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

8 2906(b)(1)) is amended by striking subparagraph (B) and 

9 inserting the following new subparagraphs: 

10 ‘‘(B) INITIAL SEPARATE EVALUATION AND

11 RATING FOR STATE, METROPOLITAN, OTHER

12 SERVICE AREAS REQUIRED.—The information 

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

14 (A) with respect to any regulated financial in15 stitution shall be presented separately, and an 

16 initial rating shall be determined separately, 

17 for— 

18 ‘‘(i) each metropolitan area in which 

19 the regulated financial institution main20 tains 1 or more domestic branches; 

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

22 financial institution maintains 1 or more 

23 domestic branches outside of a metropoli24 tan area; 

25 ‘‘(iii) each community in which the 

26 regulated financial institution makes more 


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1 than 0.5 percent of the total amount of 

2 loans; and 

3 ‘‘(iv) the communities rated by the 

4 evaluation shall include the communities in 

5 which the great majority of loans have 

6 been issued. 

7 ‘‘(C) CONTENT OF SEPARATE EVALUA8 TION.—A written evaluation to which subpara9 graph (B) applies shall describe how the Fed10 eral financial supervisory agency has performed 

11 the examination of the regulated financial insti12 tution, including a list of the individual domes13 tic branches examined. 

14 ‘‘(D) LOW AND HIGH SATISFACTORY RAT15 INGS.—In assigning ratings under subpara16 graphs (A) and (B), a Federal financial super17 visory agency may assign a rating of ‘low satis18 factory record of meeting community credit 

19 needs’ or ‘high satisfactory record of meeting 

20 community credit needs’ in lieu of the rating re21 ferred to in paragraph (2)(B). 

22 ‘‘(E) CRA IMPROVEMENT PLAN.— 

23 ‘‘(i) IN GENERAL.—Whenever a regu24 lated financial institution receives a rating 

25 of ‘low satisfactory’ or lower in any State, 


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1 metropolitan area, or other community in 

2 which it made more than 0.5 percent of 

3 total amount of loans, the financial institu4 tion shall submit a CRA improvement 

5 plan, subject to public notice and com6 ment, to the appropriate Federal financial 

7 supervisory agency. 

8 ‘‘(ii) CONTENTS OF PLAN.—Any CRA 

9 improvement plan submitted to an appro10 priate Federal financial supervisory agency 

11 by a regulated financial institution pursu12 ant to clause (i) shall describe how the in13 stitution intends to improve its perform14 ance in meeting the credit needs, including 

15 minority and low- and moderate-income 

16 neighborhoods, in the service areas where 

17 the institution received a rating of ‘low sat18 isfactory’ or lower. 

19 ‘‘(iii) REVIEW OF PLAN.—Any appro20 priate Federal financial supervisory agency 

21 regulatory agency which receives a CRA 

22 improvement plan under clause (i) from a 

23 regulated financial institution shall review 

24 the plan and either approve the plan or 

25 send it back to the institution for revisions. 


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1 ‘‘(iv) QUARTERLY REPORTS.—After 

2 an appropriate Federal financial super3 visory regulatory agency which receives a 

4 CRA improvement plan under clause (i) 

5 from a regulated financial institution ap6 proves the plan, the financial institution 

7 shall submit reports and data to the agen8 cy on a quarterly basis so that the regu9 latory agency and the general public can 

10 monitor CRA performance. 

11 ‘‘(v) ADDITIONAL LIMITATIONS.—If 

12 any regulated financial institution receives 

13 a rating of ‘Needs-to-improve’ or ‘Substan14 tial noncompliance’ in any assessment 

15 area, the appropriate Federal financial su16 pervisory agency may not accept or ap17 prove any application by such institution 

18 or any merger applications involving such 

19 institution until the institution improves 

20 this performance on a subsequent evalua21 tion. 

22 ‘‘(vi) CONSIDERATION OF PERFORM23 ANCE IN CERTAIN REVIEWS.—The appro24 priate Federal financial supervisory agency 

25 shall consider the progress of a regulated 


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1 financial institution that submits a CRA 

2 improvement plan in meeting the goals de3 scribed in such plan as an integral factor 

4 in reviews of any application by such insti5 tution or any merger applications involving 

6 such institution. 

7 ‘‘(vii) CRA IMPROVEMENT PLAN.— 

8 For purposes of this paragraph, the term 

9 ‘CRA improvement plan’ means a plan of 

10 a regulated financial institution to improve 

11 its performance in meeting the credit 

12 needs, including minority and low- and 

13 moderate-income neighborhoods, in the 

14 service areas where the institution received 

15 a rating of ‘low satisfactory’ or lower.’’. 

16 (b) ADDITIONAL PERFORMANCE FACTORS.—Section 

17 804(a)(1) of the Community Reinvestment Act of 1977 

18 (12 U.S.C. 2903(a)(1)) is amended— 

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

20 racial characteristics’’ after ‘‘low- and moderate-in21 come neighborhoods’’; and 

22 (2) by inserting ‘‘, taking into account the insti23 tution’s share of the total amount of credit extended 

24 in neighborhoods of different racial and income 


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1 characteristics within such community’’ before the 

2 semicolon at the end. 

3 (c) TECHNICAL AND CONFORMING AMENDMENTS.— 

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

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

6 2906(b)(1)(A)(iii)) is amended— 

7 (A) by inserting ‘‘overall’’ after ‘‘the insti8 tution’s’’; and 

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

10 each of the initial ratings determined under 

11 subparagraph (B) for each State, metropolitan, 

12 and service area in which the institution makes 

13 more than 0.5 percent of the total amount of 

14 loans’’ before the period at the end. 

15 (2) Section 807 of the Community Reinvest16 ment Act of 1977 (12 U.S.C. 2906) is amended— 

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

18 (B) by redesignating subsection (e) as sub19 section (d). 

20 SEC. 104. REDUCTION OF CRA RATING DUE TO PREDATORY 

21 LENDING AND OTHER NEGATIVE CREDIT 

22 PRACTICES. 

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

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

25 by adding at the end the following new subsections: 


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1 ‘‘(d) TREATMENT OF PREDATORY LENDING AND

2 OTHER DISCRIMINATORY CREDIT PRACTICES.— 

3 ‘‘(1) IN GENERAL.—In the case of a regulated 

4 financial institution, or an affiliate or business part5 ner of any such institution, which the appropriate 

6 Federal financial supervisory agency determines has 

7 engaged in any credit practice or securitization ac8 tivity which has a negative impact on a community 

9 or neighborhood, such as predatory lending or abu10 sive payday lending, or has engaged in any other 

11 practice or service in a manner which unlawfully dis12 criminates against any person or against minority or 

13 low- and moderate-income neighborhoods, the agen14 cy— 

15 ‘‘(A) may not take any such practice or 

16 service into account in assessing the institu17 tion’s record of meeting the credit needs of its 

18 entire community; and 

19 ‘‘(B) shall reduce the rating that would 

20 otherwise obtain under section 807 with respect 

21 to such institution after consideration of the ex22 tent of such negative or discriminatory practice 

23 or service. 

24 ‘‘(2) UNLAWFUL DISCRIMINATION AND PREDA25 TORY LENDING.—For purposes of paragraph (1), 


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1 the terms ‘predatory lending’ and ‘unlawfully dis2 criminates’ include any lending or discriminatory 

3 practice those that violates the Fair Housing Act, 

4 the Equal Credit Opportunity Act, the Truth in 

5 Lending Act, the Real Estate Settlement Procedures 

6 Act, the Federal Trade Commission Act, or any 

7 other consumer and fair lending law, including the 

8 law of any State or political subdivision of any 

9 State. 

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

11 purposes of determining whether a regulated financial in12 stitution engages in any practice or service described in 

13 subsection (d), an appropriate Federal financial super14 visory agency may require, by regulation, regulated finan15 cial institutions to maintain records of the terms and con16 ditions of credit extended by the institution or the terms 

17 and conditions at which credit was offered even though 

18 no credit was extended.’’. 

19 SEC. 105. SMALL BUSINESS LOAN DATA COLLECTION. 

20 (a) IN GENERAL.—The Equal Credit Opportunity 

21 Act (15 U.S.C. 1691 et seq.) is amended by inserting after 

22 section 704A the following new section: 

23 ‘‘SEC. 704B. SMALL BUSINESS LOAN DATA COLLECTION. 

24 ‘‘(a) IN GENERAL.—Subject to the requirements of 

25 this section, in the case of any application to a depository 


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1 institution for credit for a small business, the depository 

2 institution shall— 

3 ‘‘(1) inquire whether the business is a women4 or minority-owned business, without regard to 

5 whether such application is received in person, by 

6 mail, by telephone, by electronic mail or other form 

7 of electronic transmission, or by any other means 

8 and whether or not such application is in response 

9 to a solicitation by the depository institution; and 

10 ‘‘(2) maintain a record of the responses to such 

11 inquiry separate from the application and accom12 panying information. 

13 ‘‘(b) RIGHT TO REFUSE.—Any applicant for credit 

14 may refuse to provide any information requested pursuant 

15 to subsection (a) in connection with any application for 

16 credit. 

17 ‘‘(c) NO ACCESS BY UNDERWRITERS.—No loan un18 derwriter or other officer or employee of a depository insti19 tution, or any affiliate of a depository institution, involved 

20 in making any determination concerning an application for 

21 credit shall have access to any information provided by 

22 the applicant pursuant to a request under subsection (a) 

23 in connection with such application. 

24 ‘‘(d) FORM AND MANNER OF INFORMATION.— 


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1 ‘‘(1) IN GENERAL.—Each depository institution 

2 shall compile and maintain, in accordance with regu3 lations of the Board, a record of the information 

4 provided by any loan applicant pursuant to a request 

5 under subsection (a). 

6 ‘‘(2) ITEMIZED.—Information compiled and 

7 maintained under paragraph (1) shall also be 

8 itemized in order to clearly and conspicuously dis9 close the following: 

10 ‘‘(A) The number of the application and 

11 the date the application was received. 

12 ‘‘(B) The type and purpose of the loan or 

13 other credit being applied for. 

14 ‘‘(C) The amount of the credit or credit 

15 limit applied for and the amount of the credit 

16 transaction or the credit limit approved for such 

17 applicant. 

18 ‘‘(D) The type of action taken with respect 

19 to such application and the date of such action. 

20 ‘‘(E) The census tract in which is located 

21 the principal place of business of the small busi22 ness loan applicant. 

23 ‘‘(F) The gross annual revenue of the busi24 ness in the last fiscal year of the small business 


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1 loan applicant preceding the date of the appli2 cation. 

3 ‘‘(3) NO PERSONALLY IDENTIFIABLE INFORMA4 TION.—In compiling and maintaining any record of 

5 information under this section, a depository institu6 tion may not include in such record the name, spe7 cific address (other than the census tract required 

8 under paragraph (1)(E)), telephone number, elec9 tronic mail address, and any other personally identi10 fiable information concerning any individual who is, 

11 or is connected with, the small business loan appli12 cant. 

13 ‘‘(e) AVAILABILITY OF INFORMATION.— 

14 ‘‘(1) SUBMISSION TO AGENCIES.—The data re15 quired to be compiled and maintained under this 

16 section by any depository institution shall be sub17 mitted annually to the agency to whom the enforce18 ment of the requirements of this title are committed 

19 under section 704. 

20 ‘‘(2) AVAILABILITY OF INFORMATION.—Infor21 mation compiled and maintained under this section 

22 shall be retained for not less than 3 years after the 

23 date of preparation and shall be made available to 

24 the public, upon request, in the form required under 


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1 regulations prescribed by the Board. In addition, the 

2 Board shall annually provide this data to the public. 

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

4 following definitions shall apply: 

5 ‘‘(1) DEPOSITORY INSTITUTION.—The term ‘de6 pository institution’— 

7 ‘‘(A) has the meaning given the term in 

8 section 3 of the Federal Deposit Insurance Act; 

9 and 

10 ‘‘(B) includes any credit union. 

11 ‘‘(2) MINORITY-OWNED BUSINESS.—The term 

12 ‘minority-owned business’ means a business— 

13 ‘‘(A) more than 50 percent of the owner14 ship or control of which is held by 1 or more 

15 minority individuals; and 

16 ‘‘(B) more than 50 percent of the net prof17 it or loss of which accrues to 1 or more minor18 ity individuals. 

19 ‘‘(3) WOMEN-OWNED BUSINESS.—The term 

20 ‘women-owned business’ means a business— 

21 ‘‘(A) more than 50 percent of the owner22 ship or control of which is held by 1 or more 

23 women; and 

24 ‘‘(B) more than 50 percent of the net prof25 it or loss of which accrues to 1 or more women. 


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1 ‘‘(4) MINORITY.—The term ‘minority’ has the 

2 meaning given to such term by section 1204(c)(3) of 

3 the Financial Institutions Reform, Recovery and En4 forcement Act of 1989. 

5 ‘‘(5) SMALL BUSINESS LOAN.—The term ‘small 

6 business loan’ includes any loan described or defined 

7 as a small business loan under any of the following 

8 provisions of title 12 of the Code of Federal Regula9 tions: 

10 ‘‘(A) Section 25.12(u) of subpart A of part 

11 25. 

12 ‘‘(B) Section 228.12(u) of part 228. 

13 ‘‘(C) Section 345.12(u) of part 345. 

14 ‘‘(D) Section 563e.12(t) of part 563e.’’. 

15 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

16 Section 701(b) of the Equal Credit Opportunity Act (15 

17 U.S.C. 1691(b)) is amended— 

18 (1) by striking ‘‘or’’ after the semicolon at the 

19 end of paragraph (3); 

20 (2) in paragraph (4), by striking the period at 

21 the end and inserting ‘‘; or’’; and 

22 (3) by inserting after paragraph (4), the fol23 lowing new paragraph: 

24 ‘‘(5) to make an inquiry under section 704B in 

25 accordance with the requirements of such section.’’. 


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1 (c) CLERICAL AMENDMENT.—The table of sections 

2 for title VII of the Consumer Credit Protection Act is 

3 amended by inserting after the item relating to section 

4 704A the following new item: 

‘‘704B. Small business loan data collection.’’. 

5 (d) EFFECTIVE DATE.—This section and the amend6 ments made by this section shall take effect at the end 

7 of the 6-month period beginning on the date of the enact8 ment of this Act. 

9 SEC. 106. DATA COLLECTION OF DEPOSIT ACCOUNTS. 

10 (a) IN GENERAL.— 

11 (1) RECORDS REQUIRED.—For each branch, 

12 automated teller machine at which deposits are ac13 cepted, and other deposit taking service facility with 

14 respect to any depository institution, the depository 

15 institution shall maintain records of the number and 

16 dollar amounts of deposit accounts of customers. 

17 (2) GEOCODED ADDRESSES OF DEPOSITORS.— 

18 The customers’ addresses shall be geocoded so that 

19 data shall be collected regarding the census tracts of 

20 the residence or business location of the customers. 

21 (3) IDENTIFICATION OF TYPE OF DEPOSITOR.— 

22 In maintaining records on any depositor under this 

23 paragraph, the depository institution shall also re24 port whether the deposit account is for a residential 

25 or commercial customer. 


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1 (4) PUBLIC AVAILABILITY.— 

2 (A) IN GENERAL.—The following informa3 tion shall be publicly available on an annual 

4 basis: 

5 (i) The address and census tracts of 

6 each branch, automated teller machine at 

7 which deposits are accepted, and other de8 posit taking service facility with respect to 

9 any depository institution. 

10 (ii) The type of deposit account in11 cluding whether the account was a check12 ing or savings account. 

13 (iii) Data on the number and dollar 

14 amounts of the accounts, presented by cen15 sus tract location of the residential and 

16 commercial customers, shall also be col17 lected and disseminated. 

18 (B) PROTECTION OF IDENTITY.—In the 

19 publicly available data, any personally identifi20 able data element shall be removed so as to pro21 tect the identities of the commercial and resi22 dential customers. 

23 (b) AVAILABILITY OF INFORMATION.— 

24 (1) SUBMISSION TO AGENCIES.—The data re25 quired to be compiled and maintained under this 


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1 section by any depository institution shall be sub2 mitted annually to the agency to whom the enforce3 ment of the requirements of this title are committed. 

4 (2) AVAILABILITY OF INFORMATION.—Informa5 tion compiled and maintained under this section 

6 shall be retained for not less than 3 years after the 

7 date of preparation and shall be made available to 

8 the public, upon request, in the form required under 

9 regulations prescribed by the Board. 

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

11 following definitions shall apply: 

12 (1) DEPOSITORY INSTITUTION.—The term ‘‘de13 pository institution’’— 

14 (A) has the meaning given the term in sec15 tion 3 of the Federal Deposit Insurance Act; 

16 and 

17 (B) includes any credit union. 

18 (2) DEPOSIT ACCOUNT.—The term ‘‘deposit ac19 count’’ includes any checking, savings, and other 

20 types of accounts, as defined by the Board of Gov21 ernors of the Federal Reserve System. 

22 (d) AGENCY USE.—Any Federal agency with jurisdic23 tion over any depository institution shall— 

24 (1) use the data on branches and deposit ac25 counts acquired under this section as part of the exVerDate Nov 24 2008 21:21 Mar 16, 2009 Jkt 079200 PO 00000 Frm 00027 Fmt 6652 Sfmt 6201 E:\BILLS\H1479.IH H1479

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1 amination of the depository institution under the 

2 Community Reinvestment Act of 1977; and 

3 (2) assess the distribution of residential and 

4 commercial accounts at such depository institution 

5 across income and minority level of census tracts. 

6 SEC. 107. RESPONSIVENESS TO COMMUNITY NEEDS FOR 

7 SECURITIES AND INVESTMENT SERVICES. 

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

9 section is to recognize that each securities company has, 

10 with respect to each community comprising an assessment 

11 area of such company, a continuing and affirmative obliga12 tion to meet the need for financial services in such commu13 nities, including the needs of low- and moderate-income 

14 neighborhoods and persons of modest means. 

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

16 following definitions shall apply: 

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

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

19 each community, including a State, metropolitan 

20 areas, and rural counties, in which such company— 

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

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

24 total market in securities; or 


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1 (C) the communities constituting assess2 ment areas shall include the communities in 

3 which the great majority of securities have been 

4 issued. 

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) SECURITIES COMPANY.—The term ‘‘securi14 ties company’’ means any person who is— 

15 (A) a broker or dealer that is registered 

16 under the Securities Exchange Act of 1934; 

17 (B) a registered investment adviser, prop18 erly registered by or on behalf of either the Se19 curities and Exchange Commission, with re20 spect to the investment advisory activities of 

21 such investment adviser and activities incidental 

22 to such investment advisory activities; or 

23 (C) an investment company that is reg24 istered under the Investment Company Act of 

25 1940. 


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1 (c) PROGRAM.— 

2 (1) IN GENERAL.—The Securities and Ex3 change Commission, in consultation with the Sec4 retary of the Treasury, shall develop a program to 

5 ensure that securities companies meet the obliga6 tions described in subsection (a) and the require7 ments of the program under this subsection. 

8 (2) FACTORS TO BE INCLUDED.— 

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

11 for evaluating a securities company’s record of 

12 helping to meet the securities investment needs 

13 of its assessment area, including— 

14 (i) the number and distribution of 

15 customers throughout the community, in16 cluding minority and low- and moderate-in17 come customers and the dollar amounts of 

18 the investments made by such customers; 

19 (ii) the number and distribution of 

20 customers residing in minority and low21 and moderate-income census tracts; and 

22 (iii) the extent to which the company 

23 has adopted innovative and flexible mar24 keting methods, such as low minimum 

25 amounts to open accounts and low transVerDate Nov 24 2008 21:21 Mar 16, 2009 Jkt 079200 PO 00000 Frm 00030 Fmt 6652 Sfmt 6201 E:\BILLS\H1479.IH H1479

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1 action fees, that facilitate the sale of secu2 rities to low- and moderate-income cus3 tomers. 

4 (B) COMMUNITY DEVELOPMENT INVEST5 MENTS.—The program shall include, as appro6 priate, a method for evaluating a securities 

7 company’s record of community development in8 vestment in each assessment area, including— 

9 (i) the number and dollar amount of 

10 community development investments in the 

11 assessment area; and 

12 (ii) the responsiveness of the securi13 ties company, through community develop14 ment investments, to the credit, capital, 

15 and community development needs of the 

16 assessment area, including low- and mod17 erate-income neighborhoods. 

18 (C) SERVICE PERFORMANCE.—The pro19 gram shall include, as appropriate, a method 

20 for evaluating a securities company’s record of 

21 providing access to securities services in each 

22 assessment area, including— 

23 (i) the distribution of the company’s 

24 retail offices by income level and minority 

25 level of census tract and the range of servVerDate Nov 24 2008 21:21 Mar 16, 2009 Jkt 079200 PO 00000 Frm 00031 Fmt 6652 Sfmt 6201 E:\BILLS\H1479.IH H1479

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1 ices offered by retail offices across census 

2 tracts by income level and minority level; 

3 (ii) the company’s record of opening 

4 or closing retail offices in the assessment 

5 area; 

6 (iii) the extent to which the securities 

7 company has adopted effective alternate 

8 service systems in minority and low- and 

9 moderate-income neighborhoods, such as 

10 providing the means for minority and low11 and moderate-income individuals to gain 

12 electronic access to the company at work13 places, community centers, and similar lo14 cations in low- and moderate-income neigh15 borhoods; and 

16 (iv) the extent to which the securities 

17 company has provided investment edu18 cation and other investment services, such 

19 as financial counseling classes, in minority 

20 and low- and moderate-income neighbor21 hoods in the assessment area. 

22 (3) RATING.— 

23 (A) IN GENERAL.—At least once in each 2- 

24 year period beginning after the date of the enVerDate Nov 24 2008 21:21 Mar 16, 2009 Jkt 079200 PO 00000 Frm 00032 Fmt 6652 Sfmt 6201 E:\BILLS\H1479.IH H1479

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1 actment of this Act, the program shall provide 

2 for— 

3 (i) an evaluation and an initial rating 

4 of the performance of each securities com5 pany in meeting the obligation established 

6 under subsection (a) in each assessment 

7 area of the company; and 

8 (ii) an overall rating, based on the ini9 tial ratings pursuant to clause (i) of the 

10 overall achievement of the securities com11 pany in meeting such obligation. 

12 (B) RATING CATEGORIES.—The rating cat13 egories used in rating the performance of any 

14 securities company shall include ‘‘Outstanding’’, 

15 ‘‘High Satisfactory’’, ‘‘Satisfactory’’, ‘‘Low Sat16 isfactory’’, ‘‘Needs-to-Improve’’, and ‘‘Substan17 tial Noncompliance’’. 

18 (C) TREATMENT OF INVESTMENT PRAC19 TICES WITH NEGATIVE IMPACTS.—In the case 

20 of any securities company which the Securities 

21 and Exchange Commission determines has en22 gaged in securities and investment practices 

23 which have a negative impact on any assess24 ment area of the company or has otherwise en25 gaged in any practice or provided any service in 


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1 a manner which unlawfully discriminates 

2 against any person or against low- and mod3 erate-income neighborhoods, the Commission— 

4 (i) may not take any such practice 

5 into account in assessing the extent to 

6 which such company has met its obligation 

7 under subsection (a); and 

8 (ii) shall reduce the rating that would 

9 otherwise obtain under subparagraph (A) 

10 with respect to such company, after consid11 ering the extent of such negative or dis12 criminatory practice or service. 

13 (D) MAINTENANCE OF CERTAIN

14 RECORDS.—For purposes of determining wheth15 er a securities company engages in any practice 

16 or service described in subparagraph (B), the 

17 Securities and Exchange Commission may re18 quire, by regulation, securities companies to 

19 maintain records of the terms and conditions at 

20 which securities products and services were pro21 vided by the company and the terms and condi22 tions at which such securities products or serv23 ices were offered by the company even though 

24 no transaction occurred. 

25 (E) IMPROVEMENT PLAN.— 


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1 (i) IN GENERAL.—Whenever a securi2 ties company receives a rating of ‘‘low sat3 isfactory’’ or lower in any assessment area, 

4 the company shall submit a improvement 

5 plan, subject to public notice and com6 ment, to the Commission. 

7 (ii) CONTENTS OF PLAN.—Any im8 provement plan submitted to the Commis9 sion by a securities company pursuant to 

10 clause (i) shall describe how the institution 

11 intends to improve its performance in any 

12 assessment area where the company re13 ceived a rating of ‘‘low satisfactory’’ or 

14 lower. 

15 (iii) REVIEW OF PLAN.—The Commis16 sion shall review any improvement sub17 mitted under clause (i) by a securities com18 pany and either approve the plan or send 

19 it back to the company for revisions. 

20 (iv) QUARTERLY REPORTS.—After the 

21 Commission approves a improvement plan 

22 submitted by a securities company under 

23 clause (i), the company shall submit re24 ports and data on a quarterly basis so that 


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•HR 1479 IH

1 the Commission and the general public can 

2 monitor performance. 

3 (v) ADDITIONAL LIMITATIONS.—If 

4 any securities company receives a rating of 

5 ‘‘Needs-to-improve’’ or ‘‘Substantial non6 compliance’’ in any assessment area, the 

7 Commission may not accept or approve 

8 any application by such securities company 

9 or any merger applications involving such 

10 company until the securities company im11 proves performance on a subsequent eval12 uation. 

13 (vi) CONSIDERATION OF PERFORM14 ANCE IN CERTAIN REVIEWS.—The Com15 mission shall consider the progress in 

16 meeting the goals described in any im17 provement plan as an integral factor in re18 views of any application by such securities 

19 company or any merger applications involv20 ing such company. 

21 (4) CONSIDERATION OF SECURITIES COMPANY

22 RATING.—Whenever the Commission considers an 

23 application to the Commission by a securities com24 pany, the Securities and Exchange Commission 

25 shall— 


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1 (A) take into account the overall rating of 

2 the securities company under this section and 

3 any improvement plans submitted pursuant to 

4 this section; 

5 (B) provide opportunity for public com6 ment on such rating (at least a 30 day public 

7 comment period); and 

8 (C) take into account changes in the com9 munity reinvestment performance of such com10 pany since the last overall rating and the likely 

11 future community reinvestment performance of 

12 such company. 

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

14 the Securities and Exchange Commission in connection 

15 with the program under subsection (c) shall be made pub16 licly available by the Commission in a format similar to 

17 the format for public disclosure of information under the 

18 Home Mortgage Disclosure Act of 1975, as determined 

19 to be appropriate by the Commission. 

20 SEC. 108. RESPONSIVENESS TO COMMUNITY NEEDS FOR 

21 MORTGAGES AND MORTGAGE RELATED 

22 SERVICES BY MORTGAGE BANKS. 

23 (a) AFFIRMATIVE OBLIGATION.—Each mortgage 

24 bank shall have, with respect to each community com25 prising an assessment area of such mortgage bank, a conVerDate Nov 24 2008 21:21 Mar 16, 2009 Jkt 079200 PO 00000 Frm 00037 Fmt 6652 Sfmt 6201 E:\BILLS\H1479.IH H1479

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•HR 1479 IH

1 tinuing and affirmative obligation to meet the mortgage 

2 credit and mortgage service needs of such communities, 

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

4 neighborhoods of such communities. 

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

6 following definitions shall apply: 

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

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

9 community, including a State, metropolitan areas, 

10 and rural counties, in which such company— 

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

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

14 total market in housing-related loans; or 

15 (C) the communities constituting assess16 ment areas shall include the communities in 

17 which the great majority of loans have been 

18 issued. 

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 housVerDate Nov 24 2008 21:21 Mar 16, 2009 Jkt 079200 PO 00000 Frm 00038 Fmt 6652 Sfmt 6201 E:\BILLS\H1479.IH H1479

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•HR 1479 IH

1 ing, community services, small-business development, 

2 and economic development. 

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

4 bank’’ means any lender who does not accept depos5 its (as defined in section 3 of the Federal Deposit 

6 Insurance Act) and originates housing-related loans. 

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

8 the Secretary of Housing and Urban Development. 

9 (c) PROGRAM.— 

10 (1) IN GENERAL.—The Secretary, in consulta11 tion with the Secretary of the Treasury, shall de12 velop a program to ensure that mortgage banks 

13 meet the obligations described in subsection (a) and 

14 the requirements of the program under this sub15 section. 

16 (2) FACTORS TO BE INCLUDED.— 

17 (A) CUSTOMER EVALUATION.—The pro18 gram shall include, as appropriate, a method 

19 for evaluating a mortgage bank’s record of 

20 helping to meet the mortgage credit and mort21 gage service needs of its assessment area, in22 cluding— 

23 (i) the number and distribution of 

24 customers throughout the community, in25 cluding minority and low- and moderate-inVerDate Nov 24 2008 21:21 Mar 16, 2009 Jkt 079200 PO 00000 Frm 00039 Fmt 6652 Sfmt 6201 E:\BILLS\H1479.IH H1479

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•HR 1479 IH

1 come customers and the dollar amounts of 

2 the mortgage credit extended to such cus3 tomers by the mortgage bank; 

4 (ii) the number and distribution of 

5 customers residing in minority and low6 and moderate-income neighborhoods and 

7 the dollar amounts of the mortgage credit 

8 extended to such customers by the mort9 gage bank; 

10 (iii) the mortgage bank’s market 

11 share in neighborhoods of different racial 

12 and income characteristics; 

13 (iv) the mortgage bank’s market share 

14 to borrowers of different racial and income 

15 characteristics; 

16 (v) a comparison of the rate at which 

17 the mortgage bank rejects applications 

18 from minority and White applicants; 

19 (vi) any evidence of illegal discrimina20 tory credit practices, including steering, or 

21 offering less favorable loan products to ap22 plicants of different racial backgrounds; 

23 and 

24 (vii) the extent to which the mortgage 

25 bank has adopted innovative and flexible 


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•HR 1479 IH

1 marketing methods and products that fa2 cilitate the extension of mortgage credit on 

3 a nondiscriminatory basis to low- and mod4 erate-income customers. 

5 (B) COMMUNITY DEVELOPMENT INVEST6 MENTS.—The program shall include, as appro7 priate, a method for evaluating a mortgage 

8 bank’s record of community development invest9 ment in each assessment area, including— 

10 (i) the number and dollar amount of 

11 community development investments in the 

12 assessment area; and 

13 (ii) the responsiveness of the mort14 gage bank, through community develop15 ment investments, to the credit, capital, 

16 and community development needs of the 

17 assessment area, including low- and mod18 erate-income neighborhoods. 

19 (C) SERVICE PERFORMANCE.—The pro20 gram shall include, as appropriate, a method 

21 for evaluating a mortgage bank’s record of pro22 viding access to mortgage credit and mortgage 

23 services in each assessment area, including— 

24 (i) the distribution of the mortgage 

25 bank’s retail offices by income level and 


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•HR 1479 IH

1 minority level of census tract and the 

2 range of services offered by retail offices 

3 across census tracts by income level and 

4 minority level; 

5 (ii) the bank’s record of opening or 

6 closing retail offices in the assessment 

7 area; 

8 (iii) the extent to which the mortgage 

9 bank has adopted effective alternate serv10 ice systems in minority and low- and mod11 erate-income neighborhoods, such as pro12 viding the means for low- and moderate-in13 come individuals to gain electronic access 

14 to the mortgage bank at workplaces, com15 munity centers, and similar locations in 

16 minority and low- and moderate-income 

17 neighborhoods; and 

18 (iv) the extent to which the mortgage 

19 bank has provided home purchaser and 

20 home owner education and other coun21 seling services, such as financial counseling 

22 classes, in minority and low- and mod23 erate-income neighborhoods in the assess24 ment area. 

25 (3) RATING.— 


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•HR 1479 IH

1 (A) IN GENERAL.—The program shall pro2 vide for— 

3 (i) an evaluation and an initial rating 

4 of the performance of each mortgage bank 

5 in meeting the obligation established under 

6 subsection (a) in each assessment area of 

7 the bank; and 

8 (ii) an overall rating, based on the ini9 tial ratings pursuant to clause (i) of the 

10 overall achievement of the mortgage bank 

11 in meeting such obligation. 

12 (B) RATING CATEGORIES.—The rating cat13 egories used in rating the performance of any 

14 mortgage bank shall include ‘‘Outstanding’’, 

15 ‘‘High Satisfactory’’, ‘‘Satisfactory’’, ‘‘Low Sat16 isfactory’’, ‘‘Needs-to-Improve’’, and ‘‘Substan17 tial Noncompliance’’. 

18 (C) TREATMENT OF CREDIT PRACTICES

19 WITH NEGATIVE IMPACTS.— 

20 (i) IN GENERAL.—In the case of any 

21 mortgage bank which the Secretary deter22 mines has engaged in credit practices 

23 which have a negative impact on any indi24 viduals or any assessment area of the com25 pany, such as predatory mortgage lending, 


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•HR 1479 IH

1 or has otherwise engaged in any practice 

2 or provided any service in a manner which 

3 unlawfully discriminates against any per4 son or against minority or low- and mod5 erate-income neighborhoods, the Sec6 retary— 

7 (I) may not take any such prac8 tice into account in assessing the ex9 tent to which such company has met 

10 its obligation under subsection (a); 

11 and 

12 (II) shall reduce the rating that 

13 would otherwise obtain under sub14 paragraph (A) with respect to such 

15 company, after considering the extent 

16 of such negative or discriminatory 

17 practice or service. 

18 (ii) UNLAWFUL DISCRIMINATION AND

19 PREDATORY MORTGAGE LENDING.—For 

20 purposes of (i), the terms ‘‘predatory mort21 gage lending’’ and ‘‘unlawfully discrimi22 nates’’ include any lending or discrimina23 tory practice those that violates the Fair 

24 Housing Act, the Equal Credit Oppor25 tunity Act, the Truth in Lending Act, the 


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•HR 1479 IH

1 Real Estate Settlement Procedures Act, 

2 the Federal Trade Commission Act, or any 

3 other consumer and fair lending law, in4 cluding the law of any State or political 

5 subdivision of any State. 

6 (D) 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 (E) IMPROVEMENT PLAN.— 

19 (i) IN GENERAL.—Whenever a mort20 gage bank receives a rating of ‘‘low satis21 factory’’ or lower in any assessment area, 

22 the bank shall submit a improvement plan, 

23 subject to public notice and comment, to 

24 the Secretary. 


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•HR 1479 IH

1 (ii) CONTENTS OF PLAN.—Any im2 provement plan submitted to the Secretary 

3 by a mortgage bank pursuant to clause (i) 

4 shall describe how the bank intends to im5 prove its performance in any assessment 

6 area where the bank received a rating of 

7 ‘‘low satisfactory’’ or lower. 

8 (iii) REVIEW OF PLAN.—The Sec9 retary shall review any improvement sub10 mitted under clause (i) by a mortgage 

11 bank and either approve the plan or send 

12 it back to the bank for revisions. 

13 (iv) QUARTERLY REPORTS.—After the 

14 Secretary approves a improvement plan 

15 submitted by a mortgage bank under 

16 clause (i), the bank shall submit reports 

17 and data on a quarterly basis so that the 

18 Secretary and the general public can mon19 itor performance. 

20 (v) ADDITIONAL LIMITATIONS.—If 

21 any mortgage bank receives a rating of 

22 ‘‘Needs-to-improve’’ or ‘‘Substantial non23 compliance’’ in any assessment area, the 

24 Secretary may not accept or approve any 

25 application by such mortgage bank or any 


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•HR 1479 IH

1 merger applications involving such bank 

2 until performance improves on a subse3 quent evaluation. 

4 (vi) CONSIDERATION OF PERFORM5 ANCE IN CERTAIN REVIEWS.—The Sec6 retary shall consider the progress in meet7 ing the goals described in any improvement 

8 plan as an integral factor in reviews of any 

9 application by such mortgage bank or any 

10 merger applications involving such bank. 

11 (d) CONSIDERATION OF MORTGAGE BANK’S RAT12 ING.— 

13 (1) REVIEW OF RATING.—At least once in each 

14 2-year period beginning after the date of the enact15 ment of this Act, the Secretary shall— 

16 (A) conduct an examination of, and assign 

17 ratings to, mortgage banks under this sub18 section; 

19 (B) review the overall rating of each mort20 gage bank under this subsection; 

21 (C) provide opportunity for public com22 ment on such rating; and 

23 (D) review changes in the community rein24 vestment performance of such mortgage bank 

25 since the last overall rating and the likely fuVerDate Nov 24 2008 21:21 Mar 16, 2009 Jkt 079200 PO 00000 Frm 00047 Fmt 6652 Sfmt 6201 E:\BILLS\H1479.IH H1479

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1 ture community reinvestment performance of 

2 such mortgage bank. 

3 (2) CONSIDERATION OF MORTGAGE BANK’S

4 RATING.—Whenever the Secretary considers an ap5 plication by a mortgage bank, the Secretary shall— 

6 (A) take into account the overall rating of 

7 the mortgage company under this section and 

8 any improvement plans submitted pursuant to 

9 this section; 

10 (B) provide opportunity for public com11 ment on such rating (at least a 30 day public 

12 comment period); and 

13 (C) take into account changes in the com14 munity reinvestment performance of such com15 pany since the last overall rating and the likely 

16 future community reinvestment performance of 

17 such company. 

18 (3) NOTIFICATION OF UNSATISFACTORY PER19 FORMANCE.—If, in conjunction with a review pursu20 ant to paragraph (1), the Secretary determines that 

21 a mortgage bank has failed to meet the bank’s obli22 gations described in subsection (a) and the require23 ments of the program under this subsection or failed 

24 to make satisfactory improvements in meeting such 

25 obligations and requirements, the Secretary shall noVerDate Nov 24 2008 21:21 Mar 16, 2009 Jkt 079200 PO 00000 Frm 00048 Fmt 6652 Sfmt 6201 E:\BILLS\H1479.IH H1479

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1 tify the mortgage bank of such determination, de2 scribing the conditions giving rise to the notice. 

3 (4) AGREEMENT TO CORRECT CONDITIONS RE4 QUIRED.—Not later than 45 days after the date of 

5 receipt by a mortgage bank of a notice given under 

6 paragraph (3) (or such additional period as the Sec7 retary may permit), the mortgage bank shall execute 

8 an agreement, based on an improvement plan, with 

9 the Secretary to comply with the obligations and re10 quirements applicable to the mortgage bank under 

11 this section. 

12 (5) SECRETARY MAY IMPOSE LIMITATIONS.— 

13 Until the conditions described in a notice to a mort14 gage bank under paragraph (3) are corrected, the 

15 Secretary may impose such limitations on the extent 

16 to which mortgage loans originated, held, or serviced 

17 by such mortgage bank may be acquired by the Fed18 eral Home Mortgage Corporation, the Federal Na19 tional Mortgage Association, or the Government Na20 tional Mortgage Association, as the Secretary deter21 mines to be appropriate under the circumstances 

22 and consistent with the purposes of this section. 

23 (6) FAILURE TO CORRECT.—If the conditions 

24 described in a notice to a mortgage bank under 

25 paragraph (3) are not corrected within 180 days 


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•HR 1479 IH

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

2 notice under paragraph (3), the Secretary shall pro3 hibit the Federal Home Mortgage Corporation, the 

4 Federal National Mortgage Association, or the Gov5 ernment National Mortgage Association from acquir6 ing any mortgage loan originated, held, or serviced 

7 by such mortgage bank. 

8 (7) CONSULTATION.—In taking any action 

9 under this subsection, the Secretary shall consult 

10 with all relevant Federal and State regulatory agen11 cies and authorities. 

12 SEC. 109. RESPONSIVENESS TO COMMUNITY NEEDS FOR IN13 SURANCE SERVICES. 

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

15 section is to recognize that each insurance company has, 

16 with respect to each community comprising an assessment 

17 area of such company, a continuing and affirmative obliga18 tion to meet the need for insurance services in such com19 munities, including the needs of low- and moderate-income 

20 neighborhoods and persons of modest means. 

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 an insurance company, 


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1 each community, including a State, metropolitan 

2 areas, and rural counties, in which such company— 

3 (A) maintains a retail office or is rep4 resented by an agent; 

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

6 total market in insurance; or 

7 (C) the communities constituting assess8 ment areas shall include the communities in 

9 which the great majority of policies have been 

10 issued. 

11 (2) COMMUNITY DEVELOPMENT INVEST12 MENT.—The term ‘‘community development invest13 ment’’ means investment in activities that revitalize 

14 and stabilize low- and moderate-income neighbor15 hoods and directly benefit low- and moderate-income 

16 individuals, including investment in affordable hous17 ing, community services, small-business development, 

18 and economic development. 

19 (3) INSURANCE COMPANY.—The term ‘‘insur20 ance company’’ includes any person engaged in the 

21 business of insurance to the extent of such activities. 

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

23 the Secretary of Housing and Urban Development. 

24 (c) PROGRAM.— 


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1 (1) IN GENERAL.—The Secretary, in consulta2 tion with the Secretary of the Treasury, shall de3 velop a program to ensure that insurance companies 

4 meet the obligations described in subsection (a) and 

5 the requirements of the program under this sub6 section. 

7 (2) FACTORS TO BE INCLUDED.— 

8 (A) CUSTOMER EVALUATION.—The pro9 gram shall include, as appropriate, a method 

10 for evaluating an insurance company’s record of 

11 helping to meet the insurance needs of its as12 sessment area, including— 

13 (i) the number and distribution of 

14 customers throughout the community, in15 cluding minority and low- and moderate-in16 come customers, and the dollar amounts of 

17 the insurance policies held by such cus18 tomers; 

19 (ii) the number and distribution of 

20 customers residing in minority and low21 and moderate-income neighborhoods and 

22 the dollar amounts of the insurance poli23 cies held by such customers; and 

24 (iii) the extent to which the company 

25 has adopted innovative and flexible marVerDate Nov 24 2008 21:21 Mar 16, 2009 Jkt 079200 PO 00000 Frm 00052 Fmt 6652 Sfmt 6201 E:\BILLS\H1479.IH H1479

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1 keting methods and products that facilitate 

2 the sale of insurance on a nondiscrim3 inatory basis to minority and low- and 

4 moderate-income customers. 

5 (B) COMMUNITY DEVELOPMENT INVEST6 MENTS.—The program shall include, as appro7 priate, a method for evaluating an insurance 

8 company’s record of community development in9 vestment in each assessment area, including— 

10 (i) the number and dollar amount of 

11 community development investments in the 

12 assessment area; and 

13 (ii) the responsiveness of the insur14 ance company, through community devel15 opment investments, to the credit, capital, 

16 and community development needs of the 

17 assessment area, including low- and mod18 erate-income neighborhoods. 

19 (C) SERVICE PERFORMANCE.—The pro20 gram shall include, as appropriate, a method 

21 for evaluating an insurance company’s record of 

22 providing access to insurance services in each 

23 assessment area, including— 

24 (i) the distribution of the insurance 

25 company’s retail offices by income level 


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1 and minority level of census tract and the 

2 range of services offered by retail offices 

3 across census tracts by income level and 

4 minority level; 

5 (ii) the company’s record of opening 

6 or closing retail offices or affiliating with 

7 agents in the assessment area; 

8 (iii) the extent to which the insurance 

9 company has adopted effective alternate 

10 servicing systems in minority and low- and 

11 moderate-income neighborhoods, such as 

12 providing the means for minority and low13 and moderate-income individuals to gain 

14 electronic access to the company at work15 places, community centers, and similar lo16 cations in minority and low- and moderate17 income neighborhoods; and 

18 (iv) the extent to which the insurance 

19 company has provided insurance education 

20 and other insurance services, such as fi21 nancial counseling classes, in minority and 

22 low- and moderate-income neighborhoods 

23 in the assessment areas. 

24 (3) RATING.— 


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1 (A) IN GENERAL.—The program shall pro2 vide for— 

3 (i) an evaluation and an initial rating 

4 of the performance of each insurance com5 pany in meeting the obligation established 

6 under subsection (a) in each assessment 

7 area of the company; and 

8 (ii) an overall rating, based on the ini9 tial ratings pursuant to clause (i) of the 

10 overall achievement of the insurance com11 pany in meeting such obligation. 

12 (B) RATING CATEGORIES.—The rating cat13 egories used in rating the performance of any 

14 insurance company shall include ‘‘Out15 standing’’, ‘‘High Satisfactory’’, ‘‘Satisfactory’’, 

16 ‘‘Low Satisfactory’’, ‘‘Needs-to-Improve’’, and 

17 ‘‘Substantial Noncompliance’’. 

18 (C) TREATMENT OF INSURANCE PRAC19 TICES WITH NEGATIVE IMPACTS.—In the case 

20 of any insurance company which the Secretary 

21 determines has engaged in practices which have 

22 a negative impact in any assessment area of the 

23 company or has otherwise engaged in any prac24 tice or provided any service in a manner which 

25 unlawfully discriminates against any person or 


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1 against any minority or low- or moderate-in2 come neighborhood, the Secretary— 

3 (i) may not take any such practice 

4 into account in assessing the extent to 

5 which such company has met its obligation 

6 under subsection (a); and 

7 (ii) shall reduce the rating that would 

8 otherwise obtain under subparagraph (A) 

9 with respect to such company after consid10 eration of the extent of such negative or 

11 discriminatory practice or service. 

12 (D) MAINTENANCE OF CERTAIN

13 RECORDS.—For purposes of determining wheth14 er an insurance company engages in any prac15 tice or service described in subparagraph (B), 

16 the Secretary may require, by regulation, insur17 ance companies to maintain records of the 

18 terms and conditions at which insurance prod19 ucts and services were provided by the company 

20 and the terms and conditions at which such in21 surance products or services were offered by the 

22 company even though no transaction occurred. 

23 (E) IMPROVEMENT PLAN.— 

24 (i) IN GENERAL.—Whenever an insur25 ance company receives a rating of ‘‘low 


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1 satisfactory’’ or lower in any assessment 

2 area, the company shall submit an im3 provement plan, subject to public notice 

4 and comment, to the Secretary. 

5 (ii) CONTENTS OF PLAN.—Any im6 provement plan submitted to the Secretary 

7 by an insurance company pursuant to 

8 clause (i) shall describe how the institution 

9 intends to improve its performance in any 

10 assessment area where the company re11 ceived a rating of ‘‘low satisfactory’’ or 

12 lower. 

13 (iii) REVIEW OF PLAN.—The Sec14 retary shall review any improvement sub15 mitted under clause (i) by an insurance 

16 company and either approve the plan or 

17 send it back to the company for revisions. 

18 (iv) QUARTERLY REPORTS.—After the 

19 Secretary approves an improvement plan 

20 submitted by an insurance company under 

21 clause (i), the company shall submit re22 ports and data on a quarterly basis so that 

23 the Secretary and the general public can 

24 monitor performance. 


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1 (v) ADDITIONAL LIMITATIONS.—If 

2 any insurance company receives a rating of 

3 ‘‘Needs-to-improve’’ or ‘‘Substantial non4 compliance’’ in any assessment area, the 

5 Secretary may not accept or approve any 

6 application by such insurance company or 

7 any merger applications involving such 

8 company until performance improves on a 

9 subsequent evaluation. 

10 (vi) CONSIDERATION OF PERFORM11 ANCE IN CERTAIN REVIEWS.—The Sec12 retary shall consider the progress in meet13 ing the goals described in any improvement 

14 plan as an integral factor in reviews of any 

15 application by such insurance company or 

16 any merger applications involving such 

17 company. 

18 (d) CONSIDERATION OF INSURANCE COMPANY’S

19 RATING.— 

20 (1) REVIEW OF RATING.—At least once in each 

21 2-year period beginning after the date of the enact22 ment of this Act, the Secretary shall— 

23 (A) conduct an examination of and assign 

24 ratings to each insurance company under this 

25 section; 


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1 (B) provide opportunity for public com2 ment on such rating; and 

3 (C) review changes in the community rein4 vestment performance of such insurance com5 pany since the last overall rating and the likely 

6 future community reinvestment performance of 

7 such insurance company. 

8 (2) CONSIDERATION OF INSURANCE COMPANY

9 RATING.—Whenever the Secretary considers an ap10 plication to the agency by an insurance company, 

11 the agency shall— 

12 (A) take into account the overall rating of 

13 the insurance company under this section and 

14 any improvement plans submitted pursuant to 

15 this section; 

16 (B) provide opportunity for public com17 ment on such rating (at least a 30 day public 

18 comment period); and 

19 (C) take into account changes in the com20 munity reinvestment performance of such com21 pany since the last overall rating and the likely 

22 future community reinvestment performance of 

23 such company. 

24 (3) NOTIFICATION OF UNSATISFACTORY PER25 FORMANCE.—If, in conjunction with a review pursuVerDate Nov 24 2008 21:21 Mar 16, 2009 Jkt 079200 PO 00000 Frm 00059 Fmt 6652 Sfmt 6201 E:\BILLS\H1479.IH H1479

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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 (4) 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 (3) (or such additional period as 

15 the Secretary may permit), the insurance company 

16 shall execute an agreement, based on an improve17 ment plan, with the Secretary to comply with the ob18 ligations and requirements applicable to the insur19 ance company under this section. 

20 (5) SECRETARY MAY IMPOSE LIMITATIONS.— 

21 Until the conditions described in a notice to an in22 surance company under paragraph (3) are corrected, 

23 the Secretary may impose such limitations on the ex24 tent to which mortgage loans secured by real prop25 erty insured by such insurance company may be acVerDate Nov 24 2008 21:21 Mar 16, 2009 Jkt 079200 PO 00000 Frm 00060 Fmt 6652 Sfmt 6201 E:\BILLS\H1479.IH H1479

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1 quired by the Federal Home Mortgage Corporation, 

2 the Federal National Mortgage Association, or the 

3 Government National Mortgage Association, as the 

4 Secretary determines to be appropriate under the 

5 circumstances and consistent with the purposes of 

6 this section. 

7 (6) FAILURE TO CORRECT.—If the conditions 

8 described in a notice to an insurance company under 

9 paragraph (3) are not corrected within 180 days 

10 after the date of receipt by the insurance company 

11 of a notice under paragraph (3), the Secretary 

12 shall— 

13 (A) prohibit the Federal Home Mortgage 

14 Corporation, the Federal National Mortgage 

15 Association, and the Government National 

16 Mortgage Association from acquiring any mort17 gage loan secured by real property insured by 

18 such insurance company; 

19 (B) publish notice of such failure to cor20 rect in the Federal Register; and 

21 (C) notify each appropriate State insur22 ance regulator of such failure to correct. 

23 (7) CONSULTATION.—In taking any action 

24 under this subsection, the Secretary shall consult 


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1 with all relevant Federal and State regulatory agen2 cies and authorities. 

3 (e) HEALTH AND LIFE INSURANCE LINES NOT IN4 CLUDED.—This section and section 110 shall not apply 

5 to life or health lines of insurance or to insurance compa6 nies that provide only life or health insurance products. 

7 SEC. 110. SATISFACTORY RATINGS REQUIRED BY SECURI8 TIES COMPANY, MORTGAGE BANK, AND IN9 SURANCE COMPANY AFFILIATES OF FINAN10 CIAL HOLDING COMPANIES. 

11 (a) IN GENERAL.—Section 4(l)(1) of the Bank Hold12 ing Company Act of 1956 (12 U.S.C. 1843(l)(1)) is 

13 amended— 

14 (1) by striking ‘‘and’’ at the end of subpara15 graph (B); 

16 (2) by redesignating subparagraph (C) as sub17 paragraph (F); and 

18 (3) by inserting after subparagraph (B) the fol19 lowing new subparagraphs: 

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

21 of the bank holding company have a satisfac22 tory rating of meeting community needs under 

23 section 107 of the Community Reinvestment 

24 Modernization Act of 2009; 


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

2 the bank holding company have a satisfactory 

3 rating of meeting community needs under sec4 tion 108 of the Community Reinvestment Mod5 ernization Act of 2009; 

6 ‘‘(E) all of the insurance company affili7 ates of the bank holding company have a satis8 factory rating of meeting community needs 

9 under section 109 of the Community Reinvest10 ment Modernization Act of 2009; and’’. 

11 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

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

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

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

15 4(l)(1)(F)’’. 

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

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

18 amended by striking ‘‘section 4(l)(1)(C)’’ and insert19 ing ‘‘section 4(l)(1)(F)’’. 

20 SEC. 111. RESPONSIVENESS TO COMMUNITY NEEDS BY 

21 CREDIT UNIONS. 

22 Title II of the Federal Credit Union Act (12 U.S.C. 

23 1781 et seq.) is amended by adding at the end the fol24 lowing new section: 


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1 ‘‘SEC. 217. AFFIRMATIVE OBLIGATION TO MEET THE CRED2 IT NEEDS OF THE COMMUNITY. 

3 ‘‘(a) CONTINUING AND AFFIRMATIVE OBLIGATION.— 

4 The purpose of this section is to reaffirm that covered 

5 credit unions have a continuing and affirmative obligation 

6 to meet the needs of its assessment area, including minor7 ity and low- and moderate-income neighborhoods, con8 sistent with safe and sound operation. 

9 ‘‘(b) DEFINITIONS.—For purposes of this section the 

10 following definitions shall apply: 

11 ‘‘(1) ASSESSMENT AREA.—The term ‘assess12 ment area’ means an area delineated by a covered 

13 credit union consistent with the requirements de14 scribed in subsection (d). 

15 ‘‘(2) COVERED CREDIT UNION.—The term ‘cov16 ered credit union’— 

17 ‘‘(A) means an insured credit union (as de18 fined in section 101); and 

19 ‘‘(B) does not include a credit union des20 ignated by the Board as a low-income credit 

21 union for purposes of the Community Develop22 ment Credit Union Revolving Loan Fund 

23 Transfer Act. 

24 ‘‘(3) FEDERAL BANKING AGENCIES.—The term 

25 ‘Federal banking agencies’ has the same meaning as 

26 in section 3 of the Federal Deposit Insurance Act. 


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1 ‘‘(4) LOW-INCOME AND MODERATE-INCOME.— 

2 The term ‘low-income and moderate-income’ shall be 

3 defined by the Board, by regulation, consistent with 

4 the definition of such terms in regulations prescribed 

5 by the Federal banking agencies to implement the 

6 Community Reinvestment Act of 1977. 

7 ‘‘(5) CRA IMPROVEMENT PLAN.—The term 

8 ‘CRA improvement plan’ means a plan of a covered 

9 credit union to improve its performance in meeting 

10 the credit needs, including minority and low- and 

11 moderate-income neighborhoods, in the service areas 

12 where the credit union received a rating of ‘low sat13 isfactory’ or lower. 

14 ‘‘(c) ASSESSMENT OF RECORD OF MEETING COMMU15 NITY CREDIT NEEDS.— 

16 ‘‘(1) REGULATIONS.—The Board shall prescribe 

17 regulations for evaluating not less than once every 

18 two years a covered credit union’s record of meeting 

19 its obligations described in subsection (a). 

20 ‘‘(2) PERFORMANCE TESTS.—The regulations 

21 prescribed under paragraph (1) shall 

22 ‘‘(A) include performance criteria for lend23 ing, investment, services tests, and other tests 

24 substantially similar to such tests established in 

25 regulations prescribed by the Federal banking 


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1 agencies to implement the Community Reinvest2 ment Act of 1977; and 

3 ‘‘(B) ensure that the criteria established 

4 pursuant to subparagraph (A) include an as5 sessment of the covered credit union’s home 

6 mortgage, small business, and consumer lending 

7 activities, including to low- and moderate-in8 come individuals. 

9 ‘‘(3) ASSESSMENT INFORMATION.—In addition 

10 to the criteria prescribed under paragraph (2), the 

11 Board’s evaluation of a covered credit union shall in12 clude consideration, for purposes of subsections (a) 

13 and (f), of— 

14 ‘‘(A) any information about lending, in15 vestment, and service opportunities maintained 

16 by the covered credit union or obtained from 

17 community organizations, state, local, and tri18 bunal governments, economic development 

19 agencies, or other sources; 

20 ‘‘(B) a covered credit union’s investment in 

21 community development financial institutions 

22 pursuant to the Community Development Bank23 ing and Financial Institutions Act of 1994; 

24 ‘‘(C) a covered credit union’s lending and 

25 investment activities that revitalize and stabilize 


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1 minority or low- and moderate-income neighbor2 hoods, or directly benefit minority or low- and 

3 moderate-income individuals, including financ4 ing and investment in affordable housing, com5 munity services, and economic development; 

6 ‘‘(D) a covered credit union‘s lending activ7 ity in its assessment area in comparison to the 

8 credit union’s total lending activity and such 

9 relative percentage shall be taken into consider10 ation for purposes of the credit union’s lending 

11 test under paragraph (2)(A); 

12 ‘‘(E) the covered credit union’s perform13 ance in comparison to similarly situated lend14 ers, including banks, savings associations and 

15 credit unions, based on information contained 

16 in such lenders’ public file, data collected pur17 suant to the Home Mortgage Disclosure Act, 

18 and any other publicly available information 

19 that may assist the Board in a meaningful com20 parison; and 

21 ‘‘(F) any written comments about the cov22 ered credit union’s record of performance under 

23 this section submitted to the credit union or to 

24 the Board. 


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1 ‘‘(4) MEETING OBLIGATIONS.—A single com2 mon-bond credit union with fewer than 3,000 mem3 bers in which the common-bond is not based on em4 ployment in a trade, industry, or profession shall be 

5 considered to have met its obligation under sub6 section (a). 

7 ‘‘(d) ASSESSMENT AREA.— 

8 ‘‘(1) CRITERIA FOR DELINEATING.—The Board 

9 shall, by regulation, prescribe criteria for a covered 

10 credit union to use in delineating 1 or more assess11 ment areas. 

12 ‘‘(2) CRITERIA FOR REGULATIONS.—Regula13 tions prescribed pursuant to paragraph (1) shall— 

14 ‘‘(A) be consistent with regulations pre15 scribed by the Federal banking agencies under 

16 the Community Reinvestment Act of 1977; 

17 ‘‘(B) take into consideration, as appro18 priate, the differences between common-bond 

19 and community credit unions to the extent that 

20 such differences affect a covered credit union’s 

21 delineation of an assessment area; 

22 ‘‘(C) ensure that the assessment area in23 cludes areas in which a covered credit union in24 cludes membership permitted by section 

25 109(c)(2); 


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1 ‘‘(D) provide for consideration of a covered 

2 credit union’s shared branch; 

3 ‘‘(E) provide that if the covered credit 

4 union’s field of membership is based on a com5 mon-bond other than geography the credit 

6 union may delineate such field of membership 

7 as its assessment area; and 

8 ‘‘(F) provide that the delineation of a cov9 ered credit union’s assessment area may include 

10 a combination of geographic boundaries and 

11 field of membership, such as a covered credit 

12 union that includes membership permitted by 

13 section 109(c)(2). 

14 ‘‘(3) FACILITATING COMPLIANCE.—The Board 

15 shall ensure that any assessment area of a covered 

16 credit union is delineated in a manner that— 

17 ‘‘(A) does not permit the covered credit 

18 union to evade its obligations under this sec19 tion; and 

20 ‘‘(B) reflects the spirit and intent of this 

21 section. 

22 ‘‘(4) PROHIBITIONS.—A covered credit union’s 

23 assessment area shall not— 

24 ‘‘(A) reflect illegal discrimination; or 


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1 ‘‘(B) exclude minority or low- or moderate2 income segments of, or communities in, the cov3 ered credit union’s field of membership. 

4 ‘‘(e) WRITTEN EVALUATIONS.—Upon the conclusion 

5 of each examination of a covered credit union the Board 

6 shall prepare a written evaluation of the credit union’s 

7 record of meeting the credit needs of its entire community, 

8 including minority and low- and moderate-income neigh9 borhoods. 

10 ‘‘(1) PUBLIC SECTION.—Each written evalua11 tion required by this subsection shall have a public 

12 section. 

13 ‘‘(2) PUBLIC SECTION.—The public section of 

14 the written evaluation shall— 

15 ‘‘(A) state the conclusion for each perform16 ance test identified in the regulations prescribed 

17 pursuant to subsection (c); 

18 ‘‘(B) discuss the facts and data supporting 

19 such conclusions; and 

20 ‘‘(C) contain the credit union’s rating and 

21 an explanation describing the basis for the rat22 ing. 

23 ‘‘(3) RATINGS.—The covered credit union’s rat24 ing referred to in paragraph (2)(C) shall be one of 

25 the following: 


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1 ‘‘(A) Outstanding record of meeting com2 munity needs. 

3 ‘‘(B) High Satisfactory record of meeting 

4 community needs. 

5 ‘‘(C) Satisfactory record of meeting com6 munity needs. 

7 ‘‘(D) Low Satisfactory record of meeting 

8 community needs. 

9 ‘‘(E) Needs to improve record of meeting 

10 community needs. 

11 ‘‘(F) Substantial noncompliance in meeting 

12 community needs. 

13 ‘‘(f) INITIAL SEPARATE EVALUATION AND RATING

14 FOR STATE, METROPOLITAN, OTHER SERVICE AREAS RE15 QUIRED.—The information required by this act with re16 spect to any credit union shall be presented separately, 

17 and an initial rating shall be determined separately, for— 

18 ‘‘(1) each metropolitan area in which the credit 

19 union maintains 1 or more domestic branches; 

20 ‘‘(2) each State in which the credit union main21 tains 1 or more domestic branches outside of a met22 ropolitan area; 

23 ‘‘(3) each community in which the credit union 

24 makes more than 0.5 percent of the total amount of 

25 loans; and 


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1 ‘‘(4) the communities and assessment areas 

2 rated by the evaluation shall include the commu3 nities and assessment areas in which the great ma4 jority of loans have been issued. 

5 ‘‘(g) EFFECT OF PERFORMANCE ON APPLICA6 TIONS.—The Board shall provide a 30-day public com7 ment period on applications submitted by credit unions. 

8 The Board shall take into account a covered credit union’s 

9 performance, or expected performance in connection with 

10 a new charter, under this section when considering— 

11 ‘‘(1) an application for the credit union to— 

12 ‘‘(A) convert to an insured Federal credit 

13 union; 

14 ‘‘(B) convert to an insured State credit 

15 union; or 

16 ‘‘(C) convert to a new field of membership 

17 charter; 

18 ‘‘(2) an application by a covered credit union to 

19 alter or expand its field of membership; 

20 ‘‘(3) a merger with another credit union; and 

21 ‘‘(4) an application to establish or relocate a 

22 branch. 

23 ‘‘(h) CRA IMPROVEMENT PLAN.— 

24 ‘‘(1) IN GENERAL.—Whenever a credit union 

25 receives a rating of ‘low satisfactory’ or lower in any 


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1 State, metropolitan area, or other community in 

2 which it made more than 0.5 percent of total 

3 amount of loans, the credit union shall submit a 

4 CRA improvement plan, subject to public notice and 

5 comment, to the appropriate Federal financial super6 visory agency. 

7 ‘‘(2) CONTENTS OF PLAN.—Any CRA improve8 ment plan submitted to the Board by the credit 

9 union pursuant to paragraph (1) shall describe how 

10 the institution intends to improve its performance in 

11 meeting the credit needs, including minority and 

12 low- and moderate-income neighborhoods, in the 

13 service areas where the institution received a rating 

14 of ‘low satisfactory’ or lower. 

15 ‘‘(3) REVIEW OF PLAN.—The Board which re16 ceives a CRA improvement plan under paragraph 

17 (1) from a credit union shall review the plan and ei18 ther approve the plan or send it back to the credit 

19 union for revisions. 

20 ‘‘(4) QUARTERLY REPORTS.—After the Board 

21 receives a CRA improvement plan under paragraph 

22 (1) from a credit union approves the plan, the credit 

23 union shall submit reports and data to the agency 

24 on a quarterly basis so that the regulatory agency 

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1 ance of the credit union in meeting the credit needs, 

2 including minority and low- and moderate-income 

3 neighborhoods, in the service areas where the insti4 tution received a rating of ‘low satisfactory’ or lower. 

5 ‘‘(5) ADDITIONAL LIMITATIONS.—If any credit 

6 union receives a rating of ‘Needs-to-improve’ or 

7 ‘Substantial noncompliance’ in any assessment area, 

8 the Board may not accept or approve any applica9 tion by such institution or any merger applications 

10 involving such institution until performance im11 proves on a subsequent evaluation. 

12 ‘‘(6) CONSIDERATION OF PERFORMANCE IN

13 CERTAIN REVIEWS.—The Board shall consider the 

14 progress of the institution in meeting the goals de15 scribed in any CRA improvement plan as an integral 

16 factor in reviews of any application by such institu17 tion or any merger applications involving such insti18 tution. 

19 ‘‘(i) REPORTING AND PUBLICATION.— 

20 ‘‘(1) ANNUAL REPORTS.—The Board shall in21 clude in its annual report to the Congress under sec22 tion 102(d) a description of actions the Board has 

23 taken to carry out its responsibilities under this sec24 tion. 


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1 ‘‘(2) PUBLICATION OF EXAM SCHEDULE.—The 

2 Board shall publish at least 30 days in advance of 

3 the beginning of each calendar quarter a list of cov4 ered credit unions scheduled for examinations re5 quired by this section in that quarter. 

6 ‘‘(j) REPORT ON IMPLEMENTATION.— 

7 ‘‘(1) REPORT TO THE CONGRESS.—Within 90 

8 days of final issuance of the regulations required 

9 under this section, the Board shall report to the 

10 Congress on— 

11 ‘‘(A) the implementation of the regulations 

12 required under this section; 

13 ‘‘(B) reasons for instances where the 

14 Board’s regulations deviate from regulations 

15 prescribed by the Federal banking agencies pur16 suant to the Community Reinvestment Act of 

17 1977; and 

18 ‘‘(C) the manner in which the Board will 

19 measure whether a covered credit union is 

20 meeting the credit needs of individuals located 

21 in an underserved area, including low-income 

22 individuals in such underserved area. 

23 ‘‘(2) GENERAL ACCOUNTING OFFICE STUDY.— 

24 Before the end of the three-year period beginning on 

25 the date of final issuance of regulations required 


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1 under this section, the Comptroller General of the 

2 United States shall— 

3 ‘‘(A) conduct a study detailing the effec4 tiveness of the Board’s implementation of this 

5 act; and 

6 ‘‘(B) submit a report containing the find7 ings and conclusions of the Comptroller General 

8 in connection with the study required by sub9 paragraph (A), together with recommendations 

10 the Comptroller General may determine are 

11 necessary to improve the Board’s regulations to 

12 serve the spirit and intent of this act.’’. 

13 TITLE II—DATA DISCLOSURE 

14 REQUIREMENTS 

15 Subtitle A—Disclosure of Insurance 

16 Availability and Insurer Invest17 ment Information 

18 SEC. 201. SHORT TITLE. 

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

20 Act’’. 

21 SEC. 202. ESTABLISHMENT OF GENERAL REQUIREMENTS 

22 TO SUBMIT INFORMATION. 

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

24 Urban Development shall, by regulation, establish require25 ments for insurers to compile and submit information to 


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1 the Secretary for each annual reporting period, in accord2 ance with this title. 

3 (b) CONSULTATION.—In establishing the require4 ments for the submission of information under this title, 

5 the Secretary shall consult with Federal agencies having 

6 appropriate expertise, the National Association of Insur7 ance Commissioners, State insurance regulators, statis8 tical agents, representatives of small businesses, rep9 resentatives of insurance agents (including minority insur10 ance agents), representatives of property and casualty in11 surers, and community, consumer, and civil rights organi12 zations, as appropriate. 

13 (c) HEALTH AND LIFE INSURANCE LINES NOT IN14 CLUDED.—This title shall not apply to life or health lines 

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

16 insurance products. 

17 SEC. 203. REPORTING OF NONCOMMERCIAL INSURANCE IN18 FORMATION. 

19 (a) IN GENERAL.—The requirements established pur20 suant to section 202 to carry out this section shall— 

21 (1) be designed to ensure that information is 

22 submitted and compiled under this section as may be 

23 necessary to permit analysis and comparison of— 

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1 surance coverage, by census tract, including mi2 nority and low- and moderate-income neighbor3 hoods, and the race and gender of policyholders; 

4 and 

5 (B) the location of the principal place of 

6 business of insurance agents, and the location 

7 of the principal place of business of insurance 

8 agents terminated, by census tract, including 

9 minority and low- and moderate-income neigh10 borhoods; and 

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

13 the definitions of the data elements. 

14 (b) INSURERS.— 

15 (1) AGGREGATE INFORMATION.—The regula16 tions issued under section 202 shall require that 

17 each insurer for a designated line of insurance under 

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

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

21 (A) the total number of policies issued in 

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

24 policies, by designated line and by census tract, 

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1 come neighborhoods, in which the insured risk 

2 is located; 

3 (B) the total number of cancellations and 

4 nonrenewals (expressed in terms of policies or 

5 exposures, as determined by the Secretary), by 

6 designated line and by census tract, including 

7 minority and low- and moderate-income neigh8 borhoods, in which the insured risk is located; 

9 (C) the total number of— 

10 (i) licensed agents of such insurer sell11 ing insurance in the designated line, by 

12 census tract, including minority and low13 and moderate-income neighborhoods, in 

14 which the agent’s principal place of busi15 ness is located; and 

16 (ii) such agents who were terminated 

17 by the insurer, by census tract in which 

18 the agent’s principal place of business was 

19 located; and 

20 (D) for such designated line of insurance, 

21 information that will enable the Secretary to as22 sess the aggregate loss experience for the in23 surer, by census tract, including minority and 

24 low- and moderate-income neighborhoods, in 

25 which the insured risk is located. 


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1 (2) SPECIFICATION OF INFORMATION FOR

2 ITEMIZED DISCLOSURE.— 

3 (A) IN GENERAL.—The regulations issued 

4 under section 202 regarding annual reporting 

5 requirements for insurers for a designated line 

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

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

8 issued under the designated line or exposure 

9 units covered by such policies, as determined by 

10 the Secretary— 

11 (i) specify the data elements that shall 

12 be submitted; 

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

15 (iii) provide for the submission of the 

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

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

22 (v) require reporting by census tract, 

23 including minority and low- and moderate24 income neighborhoods, in which the in25 sured risk is located; 


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1 (vi) provide for the submission of in2 formation that— 

3 (I) identifies the designated line, 

4 and subline or coverage type; and 

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

7 under each such subline or coverage 

8 type that provides full replacement 

9 cost and all other bases for computing 

10 claims, such as actual cash value and 

11 fair market value; 

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

16 (viii) specify— 

17 (I) whether information shall be 

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

20 (II) whether information, when 

21 submitted, shall be aggregated by like 

22 policyholders with like policies, except 

23 that the Secretary shall not permit 

24 such aggregation if it will adversely 


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1 affect the accuracy of the information 

2 reported; 

3 (ix) in addition to reporting approvals, 

4 provide for the submission of information 

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

7 the designated line by census tract in 

8 which the insured risk is located, by race, 

9 gender, and income of the policyholder, 

10 and by whether the policy was issued in a 

11 voluntary or residual market; and 

12 (x) provide for the submission of in13 formation on the racial characteristics, 

14 gender, and income levels of policyholders 

15 at the level of detail comparable to that re16 quired by the Home Mortgage Disclosure 

17 Act of 1975 (and the regulations issued 

18 thereunder). 

19 (B) RULES REGARDING OBTAINING RACIAL

20 INFORMATION.— 

21 (i) WRITING REQUIREMENT.—The in22 formation specified in subparagraph (A)(x) 

23 relating to the racial characteristics of ap24 plicants for, and policyholders of, insur25 ance shall be obtained only in accordance 


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1 with the procedures for requesting and re2 cording racial information established in 

3 Regulation C of the Board of Governors of 

4 the Federal Reserve System under the 

5 Home Mortgage Disclosure Act of 1975, as 

6 in effect on the date of the enactment of 

7 this Act. 

8 (ii) NOTICE OF VOLUNTARY NATURE

9 OF QUESTION.—Any such written question 

10 shall clearly indicate that a response to the 

11 question is voluntary on the part of the ap12 plicant or policyholder, but encouraged, 

13 and that the information is being re14 quested by the Federal Government to 

15 monitor the availability and affordability of 

16 insurance. 

17 (iii) PROVISION OF INFORMATION BY

18 AGENT OR INSURER.—If an applicant for, 

19 or policyholder of, insurance declines to 

20 provide such information, the agent or in21 surer for such insurance may provide such 

22 information. 

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

24 insurer for a designated line shall submit— 


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1 (A) information required under subpara2 graphs (A), (B), and (D) of paragraph (1) and 

3 information required pursuant to paragraph 

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

5 located within each census tract any part of 

6 which is located in a State for which the insurer 

7 is offering the designated line; and 

8 (B) information required under paragraph 

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

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

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

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

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

18 shall provide that the information compiled and submitted 

19 under this section shall be compiled and submitted on the 

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

21 located. 

22 SEC. 205. WAIVER OF REPORTING REQUIREMENTS. 

23 (a) WAIVER FOR STATES COLLECTING EQUIVALENT

24 INFORMATION.— 


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1 (1) AUTHORITY.—Subject to the requirements 

2 under this section, the Secretary shall provide, by 

3 regulation, for the waiver of the applicability of the 

4 provisions of sections 203 and 204 for each insurer 

5 transacting business within a State referred to in 

6 paragraph (2) of this subsection, but only with re7 spect to information required to be submitted under 

8 such sections that relates to agents or insured risks 

9 located in the State. 

10 (2) REQUIREMENTS.—The Secretary may make 

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

13 in effect a law or other requirement that— 

14 (A) requires insurers to submit to the 

15 State information that is at least the same or 

16 equivalent to the information that is required to 

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

19 (B) provides for adequate enforcement of 

20 such law or other requirements; and 

21 (C) provides for the same annual reporting 

22 period used by the Secretary under this title 

23 and for submission of the information to the 

24 Secretary in a timely fashion, as determined by 

25 the Secretary. 


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

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

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

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

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

9 made, the provisions of this title requiring submission of 

10 information to the Secretary regarding such tract or area 

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

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

13 been made. 

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

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

17 does not submit to the Secretary the information required 

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

19 not complete, the Secretary shall require the insurers 

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

22 SEC. 206. REPORTING BY PRIVATE MORTGAGE INSURERS. 

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

24 Financial Institutions Examination Council shall deter25 mine the extent to which each insurer providing private 


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1 mortgage insurance is making available to the public and 

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

4 regarding mortgages required to be reported under the 

5 Home Mortgage Disclosure Act of 1975. 

6 (b) REPORTING UNDER THIS TITLE.— 

7 (1) CERTIFICATION OF NONCOMPLIANCE.—If, 

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

9 such Council determines that any insurer providing 

10 private mortgage insurance is not making available 

11 to the public or submitting the information referred 

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

13 available or submitted is not equivalent information 

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

15 notify the insurer of such noncompliance. If, after 

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

18 satisfaction of the Council, then the Council shall 

19 immediately certify such noncompliance to the Sec20 retary. 

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

23 by order, require such insurer to submit to the Sec24 retary information regarding such insurance that 


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1 complies with the provisions of section 206 that are 

2 applicable to such insurance. 

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

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

6 Urban Development shall, by regulation, require that each 

7 insurer that makes an investment in a property or busi8 ness or extends credit shall compile and submit to the Sec9 retary for each annual reporting period, the following in10 formation: 

11 (1) DIRECT LOANS.— 

12 (A) COMMERCIAL REAL ESTATE LOANS.— 

13 The total number of loans for the purchase of 

14 commercial real estate made by the insurer, the 

15 aggregate amount of such loans, and the 

16 amount of each such loan, by census tract, in17 cluding minority and low- and moderate-income 

18 neighborhoods, in which the real estate for 

19 which the loan was made is located. 

20 (B) SINGLE-FAMILY MORTGAGES.—The 

21 total number of mortgage loans for the pur22 chase of 1- to 4-family dwellings made by the 

23 insurer, the aggregate amount of such loans, 

24 and the amount of each such loan, by census 

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1 erate-income neighborhoods, in which the dwell2 ing for which the loan was made is located, 

3 which information shall be disaggregated by ra4 cial characteristics, income level, and gender of 

5 the borrower under the loan. 

6 (C) COMMERCIAL AND INDUSTRIAL

7 LOANS.—The total number of commercial and 

8 industrial loans made by the insurer, the aggre9 gate amount of such loans, and the amount of 

10 each such loan, by census tract, including mi11 nority and low- and moderate-income neighbor12 hoods, in which the property or business in13 volved in the loan is located, which information 

14 shall be disaggregated by the size of business of 

15 the borrower under the loan and by the owner16 ship characteristic of the business, which shall 

17 be classified as either minority-owned, women18 owned, or otherwise-owned. 

19 (2) LOAN PURCHASES.— 

20 (A) COMMERCIAL REAL ESTATE LOANS.— 

21 The total number of loans for the purchase of 

22 commercial real estate purchased by the in23 surer, the aggregate amount of such loans, and 

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

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1 come neighborhoods, in which the real estate 

2 for which the loan was made is located. 

3 (B) SINGLE-FAMILY MORTGAGES.—The 

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

6 the insurer, the aggregate amount of such 

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

8 census tract, including minority and low- and 

9 moderate-income neighborhoods, in which the 

10 dwelling for which the loan was made is located, 

11 which information shall be disaggregated by ra12 cial characteristics, income level, and gender of 

13 the borrower under the loan. 

14 (C) COMMERCIAL AND INDUSTRIAL

15 LOANS.—The total number of commercial and 

16 industrial loans purchased by the insurer, the 

17 aggregate amount of such loans, and the 

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

22 shall be disaggregated by the size of business of 

23 the borrower under the loan and by the owner24 ship characteristic of the business, which shall 


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1 be classified as either minority-owned, women2 owned, or otherwise-owned. 

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

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

7 such investments, and the amount of each such in8 vestment, by census tract, including minority and 

9 low- and moderate-income neighborhoods, in which 

10 the property or business involved in the investment 

11 is located, as determined by the Secretary, which in12 formation shall be disaggregated by the size of busi13 ness of the borrower under the loan and by the own14 ership characteristic of the business, which shall be 

15 classified as either minority-owned, women-owned, or 

16 otherwise-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 minority and low- and moderate-income families 

3 and persons, small businesses in distressed commu4 nities, or minority- or women-owned businesses, and 

5 (B) activities and investments that contribute to the 

6 creation of jobs and economic development of dis7 tressed 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. 

6 (b) PUBLIC ACCESS SYSTEM.— 

7 (1) IMPLEMENTATION.—The Secretary shall 

8 implement a system to facilitate access to any infor9 mation required to be made available to the public 

10 under this title. 

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

12 provide access in the following manners: 

13 (A) ACCESS TO ITEMIZED INFORMATION.— 

14 With respect to information submitted under by 

15 insurers, on the basis of the insurer submitting 

16 the information, on the basis of the census 

17 tract, including minority and low- and mod18 erate-income neighborhoods, and on any other 

19 basis the Secretary considers feasible and ap20 propriate. 

21 (B) ACCESS TO AGGREGATE INFORMA22 TION.—With respect to aggregate information 

23 compiled by the Secretary, on the basis of (i) 

24 the insurer submitting the information, and (ii) 

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1 and moderate-income neighborhoods, and on 

2 any other basis the Secretary considers feasible 

3 and appropriate. 

4 (c) PROTECTIONS REGARDING LOSS INFORMA5 TION.— 

6 (1) PROHIBITION OF DISCLOSURE OF LOSS IN7 FORMATION.—Notwithstanding any other provision 

8 of this title, the Secretary may not make available 

9 to the public or otherwise disclose any information 

10 submitted under this title regarding the amount or 

11 number of claims paid by any insurer, the amount 

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

13 any insurer, except in the form of a loss ratio (ex14 pressing the relationship of claims paid to pre15 miums) for the industry aggregate on a census tract 

16 level. 

17 (2) PROTECTION OF IDENTITY OF INSURER.— 

18 In making available to the public or otherwise dis19 closing a loss ratio for an insurer— 

20 (A) the Secretary may not identify the in21 surer to which the loss ratio relates; and 

22 (B) the Secretary may disclose the loss 

23 ratio only in a manner that does not allow any 

24 party to determine the identity of the specific 

25 insurer to which the loss ratio relates, except 


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1 parties having access to information under 

2 paragraph (3). 

3 (3) CONFIDENTIALITY OF INFORMATION DIS4 CLOSED TO GOVERNMENTAL AGENCIES.—The Sec5 retary may make information referred to in para6 graph (1) and the identity of the specific insurer to 

7 which such information relates available to any Fed8 eral entity and any State agency responsible for reg9 ulating insurance in a State and may otherwise dis10 close such information to any such entity or agency, 

11 but only to the extent such entity or agency agrees 

12 not to make any such information available or dis13 close such information to any other person. 

14 SEC. 210. DESIGNATIONS. 

15 (a) DESIGNATION OF LINES OF INSURANCE.— 

16 (1) IN GENERAL.—The Secretary shall, by reg17 ulation, designate lines of insurance as designated 

18 lines for purposes of this title, as follows: 

19 (A) AUTOMOBILE.—The Secretary shall 

20 designate private passenger automobile insur21 ance and shall also designate any sublines and 

22 coverage types of private passenger automobile 

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1 ability, affordability, and type of coverage in 

2 such line among applicable regions. 

3 (B) NONCOMMERCIAL INSURANCE FOR

4 RESIDENTIAL PROPERTY.—The Secretary shall 

5 designate homeowners insurance and dwelling 

6 fire and allied lines, and shall distinguish the 

7 coverage types in such lines by the perils cov8 ered and by market or replacement value. For 

9 purposes of this title, homeowners insurance 

10 shall include any renters coverage or coverage 

11 for the personal property of a condominium 

12 owner 

13 (2) REPORT.—At any time the Secretary deter14 mines that any line of insurance not described in 

15 paragraph (1) should be a designated line because 

16 disparities in coverage provided under such line exist 

17 among geographic areas having different income lev18 els or racial composition, the Secretary shall submit 

19 a report recommending designating such line of in20 surance as a designated line for purposes of this title 

21 to the Committee on Financial Services of the House 

22 of Representatives and the appropriate Committees 

23 of the Senate. 

24 (3) DURATION.— 


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

2 subparagraph (B), the Secretary shall make the 

3 designations under this subsection once every 5 

4 years, by regulation, and each line and subline 

5 or coverage type designated under such regula6 tions shall be designated for each of the first 5 

7 successive annual reporting periods occurring 

8 after issuance of the regulations. 

9 (B) ALTERATION.—During any 5-year pe10 riod referred to in subparagraph (A) in which 

11 designations are in effect, the Secretary may 

12 amend or revise the designated lines, sublines, 

13 and coverage types only by regulation and only 

14 in accordance with the requirements of this 

15 subsection. Such regulations amending or revis16 ing designations shall apply only to annual re17 porting periods beginning after the expiration 

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

19 issuance of the regulations. 

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

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

22 and notify interested parties during the 6-month period 

23 ending 6 months before the commencement of the first 

24 annual reporting period to which such designations apply. 


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1 (c) OBTAINING INFORMATION.—The Secretary may 

2 require insurers to submit to the Secretary such informa3 tion as the Secretary considers necessary to make designa4 tions specifically required under this title. The Secretary 

5 may not require insurers to submit any information under 

6 this subsection that relates to any line of insurance not 

7 specifically authorized to be designated pursuant to this 

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

9 under subsection (a)(2). 

10 SEC. 211. ENFORCEMENT. 

11 (a) CIVIL PENALTIES.—Any insurer who is deter12 mined by the Secretary, after providing opportunity for 

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

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

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

16 violation continues. 

17 (b) INJUNCTION.—The Secretary may bring an ac18 tion in an appropriate United States district court for ap19 propriate declaratory and injunctive relief against any in20 surer who violates the requirements referred to in sub21 section (a). 

22 (c) INSURER LIABILITY.—An insurer shall be respon23 sible under subsections (a) and (b) for any violation of 

24 a statistical agent acting on behalf of the insurer. 


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

2 (a) EXEMPTION FOR UNITED STATES PROGRAMS.— 

3 Reporting shall not be required under this title with re4 spect to insurance provided by any program underwritten 

5 or administered by the United States. 

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

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

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

9 to public disclosure, submission of information, and rec10 ordkeeping or exempting any insurer subject to this title 

11 from any obligation under, or an obligation to comply 

12 with, any such law. 

13 SEC. 213. REGULATIONS. 

14 (a) AUTHORIZATION.— 

15 (1) IN GENERAL.—The Secretary shall issue 

16 any regulations required under this title and any 

17 other regulations that may be necessary to carry out 

18 this title. 

19 (2) SUBSTANTIVE REGULATIONS.—The regula20 tions shall be issued in accordance with the proce21 dures under section 553 of title 5, United States 

22 Code, for substantive regulations. 

23 (3) EFFECTIVE DATE.—Except as otherwise 

24 provided in this title, such final regulations shall be 

25 issued before the end of the 18-month period begin26 ning on the date of the enactment of this Act. 


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

2 Secretary shall take into consideration the administrative, 

3 paperwork, and other burdens on insurance agents, includ4 ing independent insurance agents, involved in complying 

5 with the requirements of this title and shall minimize the 

6 burdens imposed by such requirements with respect to 

7 such agents. 

8 SEC. 214. DEFINITIONS. 

9 For purposes of this subtitle, the following definitions 

10 shall apply: 

11 (1) AGENT.—The term ‘‘agent’’— 

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

13 agent licensed by a State who sells property and 

14 casualty insurance; and 

15 (B) includes agents who are employees of 

16 the insurer, agents who are independent con17 tractors working exclusively for the insurer, and 

18 agents who are independent contractors ap19 pointed to represent the insurer on a nonexclu20 sive basis. 

21 (2) COMMERCIAL INSURANCE.—The term 

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

23 and casualty insurance, except private passenger 

24 automobile, homeowner’s insurance and dwelling fire 


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1 and allied lines, and other personal lines of insur2 ance. 

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

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

5 and payment bonds designated by the Secretary 

6 under section 210(a). 

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

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

9 an insurance policy, an expression of an exposure 

10 unit covered under the policy compared to the dura11 tion of the policy (pursuant to standards established 

12 by the Secretary for uniform reporting of expo13 sures). 

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

15 units’’ means, for purposes of section 203, an auto16 mobile or dwelling covered under an insurance policy 

17 for private passenger automobile or homeowners or 

18 dwelling fire and allied lines coverage. 

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

20 property and casualty insurance. Such term includes 

21 primary insurance, surplus lines insurance, and any 

22 other arrangement for the shifting and distributing 

23 of risks that is determined to be insurance under the 

24 law of any State in which the insurer or insurer 

25 group engages in an insurance business. 


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1 (7) INSURER.—The term ‘‘insurer’’— 

2 (A) means any corporation, association, so3 ciety, order, firm, company, mutual, partner4 ship, individual, aggregation of individuals, or 

5 any other legal entity that is authorized to 

6 transact the business of property or casualty in7 surance in any State or that is engaged in a 

8 property or casualty insurance business; and 

9 (B) does not include an individual or entity 

10 which represents an insurer as agent solely for 

11 the purpose of selling or which represents a 

12 consumer as a broker solely for the purpose of 

13 buying insurance. 

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

15 respect to an insurance policy, newly issued or re16 newed. 

17 (9) JOINT UNDERWRITING ASSOCIATION.—The 

18 term ‘‘joint underwriting association’’ means an un19 incorporated association of insurers established to 

20 provide a particular form of insurance to the public. 

21 (10) MORTGAGE INSURANCE.—The term 

22 ‘‘mortgage insurance’’ means insurance against the 

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

24 for residential or commercial property. 


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1 (11) PRIVATE MORTGAGE INSURANCE.—The 

2 term ‘‘private mortgage insurance’’ means mortgage 

3 insurance other than mortgage insurance made 

4 available under the National Housing Act, title 38 of 

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

6 Act of 1949. 

7 (12) PROPERTY AND CASUALTY INSURANCE.— 

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

9 (A) means insurance against loss of or 

10 damage to property, insurance against loss of 

11 income or extra expense incurred because of 

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

13 against third party liability claims caused by 

14 negligence or imposed by statute or contract; 

15 and 

16 (B) does not include workers’ compensa17 tion, professional liability, or title insurance. 

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

19 market’’— 

20 (A) means an assigned risk plan, joint un21 derwriting association, or any similar mecha22 nism designed to make insurance available to 

23 those unable to obtain it in the voluntary mar24 ket; and 


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1 (B) includes each statewide plan under 

2 part A of title XII of the National Housing Act 

3 to assure fair access to insurance requirements. 

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

5 means any area that— 

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

7 (B) has a continuous boundary; and 

8 (C) contains only areas that are rural 

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

10 the Housing Act of 1949 (except that clause 

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

12 purposes of this title). 

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

14 means the Secretary of Housing and Urban Develop15 ment. 

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

17 State, the District of Columbia, the Commonwealth 

18 of Puerto Rico, the Northern Mariana Islands, the 

19 Virgin Islands, American Samoa, and the Trust Ter20 ritory of the Pacific Islands. 

21 SEC. 215. EFFECTIVE DATE. 

22 The requirements of this title relating to reporting 

23 of information by insurers shall take effect with respect 

24 to the first annual reporting period that begins more than 

25 24 months after the date of the enactment of this Act. 


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1 Subtitle B—Improvements in Other 

2 Data Disclosure Requirements 

3 SEC. 221. MAINTENANCE AND DISCLOSURE OF INFORMA4 TION BY THE FINANCIAL INSTITUTIONS EX5 AMINATION COUNCIL. 

6 (a) IN GENERAL.—In collecting information from fi7 nancial institutions, and affiliates of financial institutions, 

8 under the Community Reinvestment Act of 1977 and the 

9 Home Mortgage Disclosure Act of 1975 relating to farm, 

10 small business, and home loans, and maintaining such in11 formation on and disclosing such information from the na12 tional information center database, the Financial Institu13 tions Examination Council shall identify whether the fi14 nancial institution or affiliate is transmitting such infor15 mation pursuant to the Community Reinvestment Act of 

16 1977 or the Home Mortgage Disclosure Act of 1975. 

17 (b) MAINTENANCE OF DATABASE.—The Financial 

18 Institutions Examination Council shall maintain a com19 prehensive database containing the hierarchical structure 

20 of organizations including financial holding companies, 

21 bank holding companies, depository institutions, and non22 depository institutions. 


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1 TITLE III—REGULATORY AND 

2 STRUCTURAL REFORMS 

3 SEC. 301. ANTIREDLINING REQUIREMENT FOR FINANCIAL 

4 HOLDING COMPANIES. 

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

6 1956 (12 U.S.C. 1843(l)(1)) (as amended by section 108 

7 of this Act) is amended— 

8 (1) by striking ‘‘and’’ at the end of subpara9 graph (E); 

10 (2) by striking the period at the end of sub11 paragraph (F) (as so redesignated by such section 

12 110 of title I) and inserting ‘‘; and’’; and 

13 (3) by adding at the end the following new sub14 paragraph: 

15 ‘‘(G) in the case of any bank holding com16 pany which underwrites or sells, or any affiliate 

17 of which underwrites or sells, annuities con18 tracts or contracts insuring, guaranteeing, or 

19 indemnifying against loss, harm, damage, ill20 ness, disability, or death— 

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

22 been adjudicated in any Federal court, and 

23 has not entered into a consent decree filed 

24 in a Federal court or into a settlement 

25 agreement, premised upon a violation of 


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1 the Fair Housing Act for the activities de2 scribed in this subparagraph; or 

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

4 entered into any such consent decree or 

5 settlement agreement, the company or the 

6 affiliate is not in violation of the decree or 

7 settlement agreement as determined by a 

8 court of competent jurisdiction or the 

9 agency with which the decree or agreement 

10 was entered into.’’. 

11 SEC. 302. NOTICE AND PUBLIC COMMENT REQUIRED BE12 FORE ESTABLISHING A FINANCIAL HOLDING 

13 COMPANY. 

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

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

16 to read as follows: 

17 ‘‘(6) NOTICE AND OPPORTUNITY FOR COMMENT

18 REQUIRED.— 

19 ‘‘(A) IN GENERAL.—No financial holding 

20 company shall directly or indirectly acquire, and 

21 no company that becomes a financial holding 

22 company shall directly or indirectly acquire con23 trol of, any company in the United States, in24 cluding through merger, consolidation, or other 

25 type of business combination, that is engaged in 


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1 activities permitted under this subsection or 

2 subsection (n) or (o), unless— 

3 ‘‘(i) such holding company has pro4 vided notice to the Board, not later than 

5 60 days prior to such proposed acquisition 

6 or prior to becoming a financial holding 

7 company, and during that time period, or 

8 such longer time period not exceeding an 

9 additional 60 days, as established by the 

10 Board; 

11 ‘‘(ii) the Board has provided public 

12 notice and opportunity for comment for 

13 not less than 30 days; and 

14 ‘‘(iii) the Board has not issued a no15 tice disapproving the proposed acquisition 

16 or retention. 

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

18 reviewing any prior notice filed under this para19 graph, the Board shall take into consider20 ation— 

21 ‘‘(i) whether the company is in com22 pliance with all applicable criteria set forth 

23 in subsection (b) and the provisions of sub24 section (d); 


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1 ‘‘(ii) whether the proposed combina2 tion represents an undue aggregation of 

3 resources; 

4 ‘‘(iii) whether the proposed combina5 tion poses a risk to the deposit insurance 

6 system; 

7 ‘‘(iv) whether the proposed combina8 tion poses a risk to State insurance guar9 anty funds; 

10 ‘‘(v) whether the proposed combina11 tion can reasonably be expected to be in 

12 the best interests of depositors or policy13 holders of the respective entities; 

14 ‘‘(vi) whether the proposed trans15 action can reasonably be expected to fur16 ther the purposes of this Act and produce 

17 benefits to the public; 

18 ‘‘(vii) whether, and the extent to 

19 which, the proposed combination poses an 

20 undue risk to the stability of the financial 

21 system in the United States; and 

22 ‘‘(viii) the community reinvestment 

23 record of all parties to the proposed trans24 action. 


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1 ‘‘(C) REQUIRED INFORMATION.—The 

2 Board may disapprove any prior notice filed 

3 under this paragraph if the company submitting 

4 such notice neglects, fails, or refuses to furnish 

5 to the Board all relevant information required 

6 by the Board. 

7 ‘‘(D) SOLICITATION OF VIEWS OF OTHER

8 SUPERVISORY AGENCIES.— 

9 ‘‘(i) IN GENERAL.—Upon receiving a 

10 prior notice under this paragraph, in order 

11 to provide for the submission of their views 

12 and recommendations, the Board shall give 

13 notice of the proposal to— 

14 ‘‘(I) the appropriate Federal 

15 banking agency of any bank involved; 

16 ‘‘(II) the appropriate functional 

17 regulator of any functionally regulated 

18 nondepository institution (as defined 

19 in section 5(c)(1)(C)) involved; and 

20 ‘‘(III) the Secretary of the Treas21 ury, the Attorney General, and the 

22 Federal Trade Commission. 

23 ‘‘(ii) TIMING.—The views and rec24 ommendations of any agency provided no25 tice under this paragraph shall be subVerDate Nov 24 2008 21:21 Mar 16, 2009 Jkt 079200 PO 00000 Frm 00111 Fmt 6652 Sfmt 6201 E:\BILLS\H1479.IH H1479

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1 mitted to the Board not later than 30 cal2 endar days after the date on which notice 

3 to the agency was given, unless the Board 

4 determines that another shorter time pe5 riod is appropriate.’’. 

6 SEC. 303. PUBLIC MEETINGS FOR BANK ACQUISITIONS AND 

7 MERGERS. 

8 (a) BANK HOLDING COMPANY ACT OF 1956.—Sec9 tion 3(c)(2) of the Bank Holding Company Act of 1956 

10 (12 U.S.C. 1842(c)(2)) is amended— 

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

12 inserting ‘‘FACTORS.— 

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

14 (2) by adding at the end the following new sub15 paragraphs: 

16 ‘‘(B) MEETINGS.—Upon the request of any 

17 person that commented on the application, the 

18 Board shall— 

19 ‘‘(i) hold a meeting involving the com20 menters and the institution; and 

21 ‘‘(ii) gather and consider additional 

22 information discussed at the meeting. 

23 ‘‘(C) PUBLIC HEARINGS.— 

24 ‘‘(i) IN GENERAL.—In the case of 

25 each application for approval under this 


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1 section, the Board shall, as necessary and 

2 on a timely basis, conduct public hearings 

3 in 1 or more areas where the Board be4 lieves there will be a substantial public im5 pact. 

6 ‘‘(ii) NUMBER.—When a significant 

7 number of members of the general public 

8 request a public hearing, the Board shall 

9 hold 1 or more public hearings, the num10 ber of which are to be determined by the 

11 number of requesters of the hearing and 

12 the areas in which the merger is likely to 

13 have a substantial public impact. 

14 ‘‘(iii) OPPORTUNITY TO BE HEARD ON

15 IMPACT OF ACQUISITION OR MERGER.— 

16 Public hearings shall provide an oppor17 tunity for commenters and other members 

18 of the general public to speak as witnesses 

19 regarding the impacts of the acquisition or 

20 merger.’’. 

21 (b) FEDERAL DEPOSIT INSURANCE ACT.—Section 

22 18(c) of the Federal Deposit Insurance Act (12 U.S.C. 

23 1828(c)) is amended by adding at the end the following 

24 new paragraphs: 


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1 (12) MEETINGS.—Upon the request of any per2 son(s) that commented on the application, the agen3 cy shall hold a meeting involving the commenters 

4 and the institution. The agency shall gather and 

5 consider additional information discussed at the 

6 meeting. 

7 ‘‘(13) MEETINGS.—Upon the request of any 

8 person that commented on an application, the re9 sponsible agency shall— 

10 ‘‘(A) hold a meeting involving the com11 menters and any insured depository institution 

12 involved; and 

13 ‘‘(B) gather and consider additional infor14 mation discussed at the meeting. 

15 ‘‘(14) PUBLIC HEARINGS.— 

16 ‘‘(A) IN GENERAL.—In each merger trans17 action involving 1 or more insured depository 

18 institutions, the responsible agency shall, as 

19 necessary and on a timely basis, conduct public 

20 hearings in 1 or more areas where the agency 

21 believes there will be a substantial public im22 pact. 

23 ‘‘(B) NUMBER.—When a significant num24 ber of members of the general public request a 

25 public hearing, the agency shall hold 1 or more 


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1 public hearings, the number of which are to be 

2 determined by the number of requesters of the 

3 hearing and the areas in which the merger is 

4 likely to have a substantial public impact. 

5 ‘‘(C) OPPORTUNITY TO BE HEARD ON IM6 PACT OF ACQUISITION OR MERGER.—Public 

7 hearings shall provide an opportunity for com8 menters and other members of the general pub9 lic to speak as witnesses regarding the impacts 

10 of the acquisition or merger.’’. 

11 (c) NATIONAL BANK CONSOLIDATION AND MERGER

12 ACT.—The National Bank Consolidation and Merger Act 

13 (12 U.S.C. 215 et seq.) is amended by adding at the end 

14 the following new section: 

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

16 AND MERGERS. 

17 ‘‘(a) MEETINGS.—Upon the request of any person 

18 that commented on the application of any national bank, 

19 the Comptroller of the Currency shall— 

20 ‘‘(1) hold a meeting involving the commenters 

21 and the bank; and 

22 ‘‘(2) gather and consider additional information 

23 discussed at the meeting. 

24 ‘‘(b) PUBLIC HEARINGS.— 


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1 ‘‘(1) IN GENERAL.—In each case of a consolida2 tion or merger under this Act, the Comptroller shall, 

3 as necessary and on a timely basis, conduct public 

4 hearings in 1 or more areas where the Comptroller 

5 believes, there will be a substantial public impact. 

6 ‘‘(2) NUMBER.—When a significant number of 

7 members of the general public request a public hear8 ing, the Comptroller shall hold 1 or more public 

9 hearings, the number of which are to be determined 

10 by the number of requesters of the hearing and the 

11 areas in which the merger is likely to have a sub12 stantial public impact. 

13 ‘‘(3) OPPORTUNITY TO BE HEARD ON IMPACT

14 OF ACQUISITION OR MERGER.—Public hearings shall 

15 provide an opportunity for commenters and other 

16 members of the general public to speak as witnesses 

17 regarding the impacts of the acquisition or merger.’’. 

18 (d) HOME OWNERS’ LOAN ACT.—Section 10(e) of 

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

20 by adding at the end the following new paragraphs: 

21 ‘‘(7) PUBLIC MEETINGS FOR DEPOSITORY IN22 STITUTION ACQUISITIONS AND MERGERS.— 

23 ‘‘(A) MEETINGS.—Upon the request of any 

24 person(s) that commented on the application, 

25 the Director shall hold a meeting involving the 


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1 commenters and the institution. The Director 

2 shall gather and consider additional information 

3 discussed at the meeting. 

4 ‘‘(B) PUBLIC HEARINGS.— 

5 ‘‘(i) IN GENERAL.—In each case in6 volving an application under this sub7 section, the Director shall, as necessary 

8 and on a timely basis, conduct public hear9 ings in 1 or more areas where the Director 

10 believes there will be a substantial public 

11 impact. 

12 ‘‘(ii) NUMBER.—When a significant 

13 number of members of the general public 

14 request a public hearing, the Director shall 

15 hold 1 or more public hearings, the num16 ber of which are to be determined by the 

17 number of requesters of the hearing and 

18 the areas in which the merger is likely to 

19 have a substantial public impact. 

20 ‘‘(iii) OPPORTUNITY TO BE HEARD ON

21 IMPACT OF ACQUISITION OR MERGER.— 

22 Public hearings shall provide an oppor23 tunity for commenters and other members 

24 of the general public to speak as witnesses 

25 regarding the impacts of the merger.’’. 


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1 SEC. 304. BRANCH CLOSURE REQUIREMENTS. 

2 Subsection (a) of section 42 of the Federal Deposit 

3 Insurance Act (12 U.S.C. 1831r–1(a)) is amended by add4 ing at the end the following new paragraphs: 

5 ‘‘(3) PUBLIC COMMENT.—Upon receiving a no6 tice from an insured depository institution pursuant 

7 to paragraph (1), the appropriate Federal agency 

8 shall— 

9 ‘‘(A) promptly initiate a 60-day period for 

10 receiving public comment on the proposed clos11 ing of a branch of the depository institution; 

12 and 

13 ‘‘(B) provide adequate notice of such pub14 lic comment period in media of general circula15 tion or public broadcast in the area served by 

16 such branch. 

17 ‘‘(4) PUBLIC MEETING FOR DISCUSSION OF AL18 TERNATIVES.—If, during any period for public com19 ment under paragraph (3) on the proposed closing 

20 of a branch of the depository institution, the appro21 priate Federal banking agency soliciting such com22 ments receives a request for a public hearing on the 

23 proposal, the agency shall promptly schedule a pub24 lic meeting to be held at least 30 days before the 

25 date of the proposed closure at a convenient location 


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1 in the vicinity of such branch so that alternatives to 

2 closure can be considered by all stakeholders.’’. 

3 SEC. 305. CRA EXAMINATION SCHEDULE FOR SMALL 

4 BANKS. 

5 Section 809(a) of the Community Reinvestment Act 

6 of 1977 (12 U.S.C. 2908(a)) is amended to read as fol7 lows: 

8 ‘‘(a) IN GENERAL.—All regulated financial institu9 tions shall be examined under this title at least once in 

10 each 2-year period and the scheduling of regularly occur11 ring examinations may not take into account the size or 

12 the aggregate assets of the financial institution.’’. 

13 SEC. 306. CRA SUNSHINE REQUIREMENTS. 

14 Section 48 of the Federal Deposit Insurance Act (12 

15 U.S.C. 1831y) (as added by section 711 of the Gramm16 Leach-Bliley Act) is hereby repealed. 

17 SEC. 307. CONTINUING COMMUNITY REINVESTMENT RE18 QUIREMENT FOR FINANCIAL HOLDING COM19 PANIES. 

20 (a) IN GENERAL.—Section 4(l)(2) of the Bank Hold21 ing Company Act of 1956 (12 U.S.C. 1843(l)(2)) is 

22 amended— 

23 (1) in subparagraph (A), by inserting ‘‘or con24 tinuing’’ after ‘‘commencing’’; and 


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1 (2) in subparagraph (B), by inserting ‘‘or main2 taining’’ after ‘‘acquiring’’. 

3 (b) TECHNICAL AND CONFORMING AMENDMENT.— 

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

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

6 1843(m)(1)) is amended by striking ‘‘subsection 

7 (l)(1)’’ and inserting ‘‘paragraph (1) or (2) of sub8 section (l)’’. 

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

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

11 1843(m)(2)) is amended by striking ‘‘subsection 

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

13 subsection (l)’’. 

14 SEC. 308. CHANGES IN REPORTING REQUIREMENTS UNDER 

15 THE HOME MORTGAGE DISCLOSURE ACT OF 

16 1975. 

17 (a) PROHIBITION ON REGULATORY EXEMPTIONS

18 FROM REPORTING REQUIREMENTS.—Section 304 of the 

19 Home Mortgage Disclosure Act of 1975 (12 U.S.C. 2803) 

20 is amended by adding at the end the following new sub21 section: 

22 ‘‘(n) PROHIBITION ON REGULATORY EXEMPTIONS

23 FROM REPORTING REQUIREMENTS.—Subject to sub24 section (i)— 


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

2 as authorizing the Board, the Secretary, or any 

3 other Federal agency to exempt any depository insti4 tution from the requirements of this title; and 

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

6 this title provided in any regulation, such as the ex7 emption provided in Appendix A to part 203 of the 

8 Code of Federal Regulations for lending institutions 

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

10 amount of purchase loans originated in any year did 

11 not exceed 10 percent of the total dollar amount of 

12 all loan originations by such institution in such year, 

13 shall cease to be effective as of the date of the enact14 ment of the Community Reinvestment Modernization 

15 Act of 2009.’’. 

16 (b) REPORTING OF ADDITIONAL DATA REQUIRED.— 

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

18 1975 (12 U.S.C. 2803(b)) is amended— 

19 (1) by striking ‘‘and’’ at the end of paragraph 

20 (3); 

21 (2) by striking the period at the end of para22 graph (4) and inserting a semicolon; and 

23 (3) by adding at the following new paragraph: 

24 ‘‘(5) information on loan pricing and terms, in25 cluding interest rates, annual percentage rates, bona 


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1 fide discount points, origination fees, other fees re2 quired to be disclosed in the Good Faith Estimate 

3 and the HUD–1 document, yield-spread premiums, 

4 financing of lump sum insurance premium pay5 ments, balloon payment, prepayment penalties, loan6 to-value ratios, debt-to-income ratios, housing pay7 ment-to-income ratios, and credit score information, 

8 information on whether the loan is a fixed-rate loan 

9 or a variable rate mortgage loan (and if it is a vari10 able rate mortgage loan, the length of any initial 

11 rate, and how often the rate adjusts); information on 

12 whether the financial institution required full docu13 mentation of borrower income; information on the 

14 loan channel, including whether a broker received 

15 the loan application and approved or rejected the ap16 plication; and’’. 

17 (c) REPORTING ON MANUFACTURED HOME LOANS

18 THAT ARE NOT TREATED BY THE DEPOSITORY INSTITU19 TION AS REAL ESTATE LOANS.— 

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

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

22 2803(b)) is amended by inserting after paragraph 

23 (5) (as added by subsection (B) of this section) the 

24 following new paragraph: 


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1 ‘‘(6) the number and dollar amount of mort2 gage loans secured by manufactured homes (as de3 fined in section 603 of the National Manufactured 

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

5 (2) MORTGAGE LOAN DEFINED TO INCLUDE

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

7 the Home Mortgage Disclosure Act of 1975 (12 

8 U.S.C. 2802(1)) is amended by inserting ‘‘or a man9 ufactured home’’ after ‘‘residential real property’’. 

10 (d) CREATION OF DATABASE ON LOAN PERFORM11 ANCE.— 

12 (1) IN GENERAL.—The Board of Governors of 

13 the Federal Reserve System shall— 

14 (A) create a database on loan performance 

15 (whether loans are current, delinquent, or in de16 fault or foreclosure); 

17 (B) link the database on loan performance 

18 with data collected pursuant to the Home Mort19 gage Disclosure Act of 1975; and 

20 (C) make such information publicly avail21 able. 

22 (2) OTHER INFORMATION.—The database es23 tablished pursuant to paragraph (1)(A) shall also 

24 contain information on loan modifications, including 

25 the type of loan modification, such as interest rate 


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1 reductions, principal loan balance reductions, repay2 ment plans, forbearance, and modifications that in3 crease outstanding balance owed. 

4 (3) COLLABORATION AND COLLECTION.—The 

5 Board of Governors of the Federal Reserve System 

6 shall— 

7 (A) collaborate with other relevant Federal 

8 and State agencies; and 

9 (B) collect information for the database on 

10 loan performance from loan servicers and other 

11 financial institutions. 

12 (e) ENFORCEMENT POWERS FOR SECRETARY.—Sec13 tion 305 of the Home Mortgage Disclosure Act of 1975 

14 (12 U.S.C. 2804) is amended by inserting at the end the 

15 following new subsection: 

16 ‘‘(d) AUTHORITY TO CARRY OUT SUBSECTION

17 (b)(4).—For purposes of enforcing compliance with the re18 quirements of this title pursuant to subsection (b)(4)— 

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

20 the Federal Deposit Insurance Act shall apply to de21 pository institutions described in section 303(2)(B) 

22 in the same manner they apply to depository institu23 tions (as defined in section 3 of the Federal Deposit 

24 Insurance Act); and 


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

2 and duties under such subsections with respect to 

3 depository institutions described in section 

4 303(2)(B) as an appropriate Federal banking agen5 cy (as defined in such Act) has with respect to de6 pository institutions (as defined in section 3 of the 

7 Federal Deposit Insurance Act).’’. 

8 SEC. 309. ANNUAL REPORT AND CONGRESSIONAL HEAR9 INGS. 

10 (a) IN GENERAL.—On an annual basis, the Com11 mittee on Financial Services of the House of Representa12 tives and the Committee on Banking, Housing, and Urban 

13 Affairs of the Senate shall hold hearings to consider the 

14 effectiveness of implementation of this Act by the Federal 

15 agencies with responsibilities under this Act. 

16 (b) CONSIDERATION OF FURTHER AMENDMENTS.— 

17 The Committee on Financial Services of the House of 

18 Representatives and the Committee on Banking, Housing, 

19 and Urban Affairs of the Senate shall consider, as appro20 priate, any enhancements or modifications to this Act to 

21 increase the effectiveness of the objectives and purposes 

22 of this Act and the amendments made by this Act to other 

23 provisions of law. 


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1 (c) RULES OF HOUSE OF REPRESENTATIVES AND

2 SENATE.—Subsections (a) and (b) are enacted by the 

3 Congress— 

4 (1) as an exercise of the rulemaking power of 

5 the Senate and House of Representatives, respec6 tively, and as such it is deemed a part of the rules 

7 of each House, respectively, but applicable only with 

8 respect to the procedure to be followed in that 

9 House and it supersedes other rules only to the ex10 tent that it is inconsistent with such rules; and 

11 (2) with full recognition of the constitutional 

12 right of either House to change the rules (so far as 

13 relating to the procedure of that House) at any time, 

14 in the same manner, and to the same extent as in 

15 the case of any other rule of that House. 

Æ 


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