I 

110TH CONGRESS 

1ST SESSION H. R. 1289 

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

securities firms, and other financial service providers become affiliates 

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

other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 1, 2007 

Ms. EDDIE BERNICE JOHNSON of Texas (for herself, Mr. GUTIERREZ, Ms. 

SCHAKOWSKY, Mr. CARNAHAN, Mr. CONYERS, Mr. FATTAH, Mr. BRADY

of Pennsylvania, Mrs. JONES of Ohio, Ms. CORRINE BROWN of Florida, 

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

Committee on Financial Services 

A BILL 

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

financial service providers become affiliates as a result 

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

for other purposes. 

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


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1 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

3 ‘‘Community Reinvestment Modernization Act of 2007’’. 

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

5 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Findings. 

Sec. 3. Purposes. 

TITLE I—MODERNIZATION OF COMMUNITY REINVESTMENT ACT 

OF 1977 AND COMMUNITY SERVICE OBLIGATIONS 

Sec. 101. 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. Responsiveness to community needs for securities and investment 

services. 

Sec. 106. Responsiveness to community needs for mortgages and mortgage related services by mortgage banks. 

Sec. 107. Responsiveness to community needs for insurance services. 

Sec. 108. Satisfactory ratings required by securities company, mortgage bank, 

and insurance company affiliates of financial holding companies. 

TITLE II—DATA DISCLOSURE REQUIREMENTS 

Subtitle A—Disclosure of Insurance Availability and Insurer Investment 

Information 

Sec. 201. Short title. 

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

Sec. 203. Reporting of noncommercial insurance information. 

Sec. 204. Reporting of rural insurance information. 

Sec. 205. Waiver of reporting requirements. 

Sec. 206. Reporting by private mortgage insurers. 

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

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

Sec. 209. Availability and access system. 

Sec. 210. Designations. 

Sec. 211. Enforcement. 

Sec. 212. Exemption and relation to State laws. 

Sec. 213. Regulations. 

Sec. 214. Definitions. 

Sec. 215. Effective date. 


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Subtitle B—Improvements in Other Data Disclosure Requirements 

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

TITLE III—REGULATORY AND STRUCTURAL REFORMS 

Sec. 301. Antiredlining requirement for financial holding companies. 

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

holding company. 

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

Sec. 304. 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. 

1 SEC. 2. FINDINGS. 

2 The Congress finds as follows: 

3 (1) It is necessary to increase homeownership 

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

6 necessary to close the wealth gap in the United 

7 States and to increase access to insurance and secu8 rities products. 

9 (2) The Community Reinvestment Act of 1977 

10 has been effective in increasing access to credit and 

11 capital because it imposes an affirmative and con12 tinual obligation on banks and thrifts to meet the 

13 needs of the local communities in which they are 

14 chartered. 

15 (3) The Community Reinvestment Act of 1977 

16 has leveraged more than $4,000,000,000,000 in 

17 loans and investments for low- and moderate-income 


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1 communities according to the National Community 

2 Reinvestment Coalition. 

3 (4) Major studies, including those conducted by 

4 the Secretary of the Treasury, the Board of Gov5 ernors of the Federal Reserve System, and Harvard 

6 University, have found that the Community Rein7 vestment Act of 1977 increases home mortgage lend8 ing to minority and low- and moderate-income com9 munities and that this lending is profitable. 

10 (5) The Community Reinvestment Act of 1977 

11 has leveraged a tremendous increase in home mort12 gage lending to minority and low- and moderate-in13 come borrowers as compared to whites and middle14 income borrowers; from 1993 through 2002, home 

15 mortgage lending has increased by 79.5 percent to 

16 Blacks, by 185.8 percent to Hispanics, by 29.6 per17 cent to whites, by 90.6 percent to low- and mod18 erate-income borrowers, and by 51.4 percent to mid19 dle-income borrowers. 

20 (6) While the Community Reinvestment Act of 

21 1977 has been effective, significant wealth dispari22 ties remain; in the fourth quarter of 2004, the white 

23 homeownership rate was 76.2 percent while the Afri24 can-American and Hispanic homeownership rates 

25 were 49.1 percent and 48.9 percent, respectively. 


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1 (7) In 2002, the median net worth for Hispanic 

2 and African-American households was $7,932 and 

3 $5,988 respectively, while, in sharp contrast, the me4 dian net worth for White households was $88,651. 

5 (8) Research conducted by the chief economist 

6 of the National Association of Insurance Commis7 sioners found that after controlling for risk of loss, 

8 a 10 percentage point increase in the number of mi9 norities in a zip code is associated with a 2 percent10 age point increase in the number of ‘FAIR plans’, 

11 which are government-sponsored insurance plans of 

12 last resort for those who cannot obtain insurance in 

13 the private market. 

14 (9) In order to increase access to credit, wealth 

15 and insurance, it is necessary to modernize the Com16 munity Reinvestment Act of 1977 to reflect shifting 

17 trends in the financial services industry since, cur18 rently, only about 40 percent of the assets in the fi19 nancial industry reside in bank and thrifts and are 

20 covered by the Community Reinvestment Act of 

21 1977, which is down from about 60 percent in the 

22 early 1980s. 

23 SEC. 3. PURPOSES. 

24 The purposes of this Act are as follows: 


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1 (1) To enhance the availability of financial serv2 ices to citizens of all economic circumstances and in 

3 all geographic areas. 

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

8 (3) To ensure that community reinvestment 

9 keeps pace with the affiliation of banks, securities 

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

12 TITLE I—MODERNIZATION OF 

13 COMMUNITY REINVESTMENT 

14 ACT OF 1977 AND COMMUNITY 

15 SERVICE OBLIGATIONS 

16 SEC. 101. REPEAL OF RECENT REGULATORY CHANGES TO 

17 THE APPLICATION OF THE COMMUNITY RE18 INVESTMENT ACT OF 1977 AND RESTORATION 

19 OF COMPREHENSIVE EXAMINATIONS. 

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

21 of the Comptroller of the Currency, the Board of Gov22 ernors of the Federal Reserve System, the Federal Deposit 

23 Insurance Corporation, and the Director of the Office of 

24 Thrift Supervision that are described in subsection (b) 

25 shall cease to be effective as of such date and the regulaVerDate Aug 31 2005 22:30 Mar 03, 2007 Jkt 059200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H1289.IH H1289

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1 tions of such agencies in effect before the date of the pub2 lication of the regulations described in subsection (b) shall 

3 apply after such date of enactment. 

4 (b) REGULATIONS DESCRIBED.—The regulations re5 ferred to in subsection (a) are any of the following regula6 tions: 

7 (1) The regulations published jointly in final 

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

9 et seq.— 

10 (A) by the Comptroller of the Currency, 

11 amending 12 Code of Federal Regulations part 

12 25; 

13 (B) by the Board of Governors of the Fed14 eral Reserve System, amending 12 Code of Fed15 eral Regulations part 228; and 

16 (C) by the Federal Deposit Insurance Cor17 poration, amending 12 Code of Federal Regula18 tions part 345. 

19 (2) The regulation published as a final regula20 tion on August 18, 2004, 69 Federal Register 

21 51155, et seq., by the Director of the Office of 

22 Thrift Supervision, amending 12 Code of Federal 

23 Regulations part 563e. 

24 (3) The regulation published as a final regula25 tion on March 2, 2005, 70 Federal Register 10023, 


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1 et seq., by the Director of the Office of Thrift Su2 pervision, also amending 12 Code of Federal Regula3 tions part 563e. 

4 SEC. 102. EXTENSION OF COMMUNITY REINVESTMENT OB5 LIGATIONS WITHIN A FINANCIAL HOLDING 

6 COMPANY. 

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

8 1956 (12 U.S.C. 1843(l)) is amended by adding at the 

9 end the following new paragraph: 

10 ‘‘(4) COMMUNITY NEEDS.— 

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

12 of bank holding companies that engage in lend13 ing or offer banking products or services 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; and 

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. 

3 ‘‘(C) CONTENT OF SEPARATE EVALUA4 TION.—A written evaluation to which subpara5 graph (B) applies shall describe how the Fed6 eral financial supervisory agency has performed 

7 the examination of the regulated financial insti8 tution, including a list of the individual domes9 tic branches examined. 

10 ‘‘(D) LOW AND HIGH SATISFACTORY RAT11 INGS.—In assigning ratings under subpara12 graphs (A) and (B), a Federal financial super13 visory agency may assign a rating of ‘low satis14 factory record of meeting community credit 

15 needs’ or ‘high satisfactory record of meeting 

16 community credit needs’ in lieu of the rating re17 ferred to in paragraph (2)(B). 

18 ‘‘(E) CRA IMPROVEMENT PLAN.— 

19 ‘‘(i) IN GENERAL.—Whenever a regu20 lated financial institution receives a rating 

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

22 metropolitan area, or other community in 

23 which it made more than 0.5 percent of 

24 total amount of loans, the financial institu25 tion shall submit a CRA improvement 


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1 plan, subject to public notice and com2 ment, to the appropriate Federal financial 

3 supervisory agency. 

4 ‘‘(ii) CONTENTS OF PLAN.—Any CRA 

5 improvement plan submitted to an appro6 priate Federal financial supervisory agency 

7 by a regulated financial institution pursu8 ant to clause (i) shall describe how the in9 stitution intends to improve its perform10 ance in meeting the credit needs, including 

11 low- and moderate-income neighborhoods, 

12 in the service areas where the institution 

13 received a rating of ‘low satisfactory’ or 

14 lower. 

15 ‘‘(iii) REVIEW OF PLAN.—Any appro16 priate Federal financial supervisory agency 

17 regulatory agency which receives a CRA 

18 improvement plan under clause (i) from a 

19 regulated financial institution shall review 

20 the plan and either approve the plan or 

21 send it back to the institution for revisions. 

22 ‘‘(iv) QUARTERLY REPORTS.—After 

23 an appropriate Federal financial super24 visory agency regulatory agency which re25 ceives a CRA improvement plan under 


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1 clause (i) from a regulated financial insti2 tution approves the plan, the financial in3 stitution shall submit reports and data to 

4 the agency on a quarterly basis so that the 

5 regulatory agency and the general public 

6 can monitor CRA performance. 

7 ‘‘(v) ADDITIONAL LIMITATIONS.—If 

8 any regulated financial institution receives 

9 a rating of ‘Needs-to-improve’ or ‘Substan10 tial noncompliance’ in any service area, the 

11 appropriate Federal financial supervisory 

12 agency may not accept or approve any ap13 plication by such institution or any merger 

14 applications involving such institution. 

15 ‘‘(vi) CONSIDERATION OF PERFORM16 ANCE IN CERTAIN REVIEWS.—If any regu17 lated financial institution receives a rating 

18 of ‘low satisfactory’ in any service area, the 

19 appropriate Federal financial supervisory 

20 agency shall consider the progress of the 

21 institution in meeting the goals described 

22 in the CRA improvement plan as an inte23 gral factor in reviews of any application by 

24 such institution or any merger applications 

25 involving such institution.’’. 


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1 (b) ADDITIONAL PERFORMANCE FACTORS.—Section 

2 804(a)(1) of the Community Reinvestment Act of 1977 

3 (12 U.S.C. 2903(a)(1)) is amended— 

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

5 racial characteristics’’ after ‘‘low- and moderate-in6 come neighborhoods’’; and 

7 (2) By inserting ‘‘, taking into account the in8 stitution’s share of the total amount of credit ex9 tended in neighborhoods of different racial and in10 come characteristics within such community’’ before 

11 the semicolon at the end. 

12 (c) TECHNICAL AND CONFORMING AMENDMENTS.— 

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

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

15 2906(b)(1)(A)(iii)) is amended— 

16 (A) by inserting ‘‘overall’’ after ‘‘the insti17 tution’s’’; and 

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

19 each of the initial ratings determined under 

20 subparagraph (B) for each State, metropolitan, 

21 and service area in which the institution makes 

22 more than 0.5 percent of the total amount of 

23 loans’’ before the period at the end. 

24 (2) Section 807 of the Community Reinvest25 ment Act of 1977 (12 U.S.C. 2906) is amended— 


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

2 (B) by redesignating subsection (e) as sub3 section (d). 

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

5 LENDING AND OTHER NEGATIVE CREDIT 

6 PRACTICES. 

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

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

9 by adding at the end the following new subsections: 

10 ‘‘(d) TREATMENT OF PREDATORY LENDING AND

11 OTHER DISCRIMINATORY CREDIT PRACTICES.— 

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

13 financial institution, or an affiliate or business part14 ner of any such institution, which the appropriate 

15 Federal financial supervisory agency determines has 

16 engaged in any credit practice which has a negative 

17 impact on a community or neighborhood, such as 

18 predatory lending or abusive payday lending, or has 

19 engaged in any other lending practice or service in 

20 a manner which unlawfully discriminates against 

21 any person or against minority or low- and mod22 erate-income neighborhoods, the agency— 

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

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1 tion’s record of meeting the credit needs of its 

2 entire community; and 

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

4 otherwise obtain under section 807 with respect 

5 to such institution after consideration of the ex6 tent of such negative or discriminatory practice 

7 or service. 

8 ‘‘(2) UNLAWFUL DISCRIMINATION AND PREDA9 TORY LENDING.—For purposes of paragraph (1), 

10 the terms ‘predatory lending’ and ‘unlawfully dis11 criminates’ include any lending or discriminatory 

12 practice those that violates the Fair Housing Act, 

13 the Equal Credit Opportunity Act, the Truth in 

14 Lending Act, the Real Estate Settlement Procedures 

15 Act, the Federal Trade Commission Act, or any 

16 other consumer and fair lending law, including the 

17 law of any State or political subdivision of any 

18 State. 

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

20 purposes of determining whether a regulated financial in21 stitution engages in any practice or service described in 

22 subsection (d), an appropriate Federal financial super23 visory agency may require, by regulation, regulated finan24 cial institutions to maintain records of the terms and con25 ditions of credit extended by the institution or the terms 


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1 and conditions at which credit was offered even though 

2 no credit was extended.’’. 

3 SEC. 105. RESPONSIVENESS TO COMMUNITY NEEDS FOR 

4 SECURITIES AND INVESTMENT SERVICES. 

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

6 section is to recognize that each securities company has, 

7 with respect to each community comprising an assessment 

8 area of such company, a continuing and affirmative obliga9 tion to meet the need for financial services in such commu10 nities, including the needs of low- and moderate-income 

11 neighborhoods and persons of modest means. 

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

13 following definitions shall apply: 

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

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

16 each community in which such company— 

17 (A) maintains a retail office or is rep18 resented by an agent; or 

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

20 total market in securities. 

21 (2) COMMUNITY DEVELOPMENT INVEST22 MENT.—The term ‘‘community development invest23 ment’’ means investment in activities that revitalize 

24 and stabilize low- and moderate-income neighbor25 hoods and directly benefit low- and moderate-income 


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1 individuals, including investment in affordable hous2 ing, community services, small-business development, 

3 and economic development. 

4 (3) SECURITIES COMPANY.—The term ‘‘securi5 ties company’’ means any person who is— 

6 (A) a broker or dealer that is registered 

7 under the Securities Exchange Act of 1934; 

8 (B) a registered investment adviser, prop9 erly registered by or on behalf of either the Se10 curities and Exchange Commission, with re11 spect to the investment advisory activities of 

12 such investment adviser and activities incidental 

13 to such investment advisory activities; or 

14 (C) an investment company that is reg15 istered under the Investment Company Act of 

16 1940. 

17 (c) PROGRAM.— 

18 (1) IN GENERAL.—The Securities and Ex19 change Commission, in consultation with the Sec20 retary of the Treasury, shall develop a program to 

21 ensure that securities companies meet the obliga22 tions described in subsection (a) and the require23 ments of the program under this subsection. 

24 (2) FACTORS TO BE INCLUDED.— 


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1 (A) CUSTOMER EVALUATION.—The pro2 gram shall include, as appropriate, a method 

3 for evaluating a securities company’s record of 

4 helping to meet the securities investment needs 

5 of its assessment area, including— 

6 (i) the number and distribution of 

7 customers throughout the community, in8 cluding minority and low- and moderate-in9 come customers and the dollar amounts of 

10 the investments made by such customers; 

11 (ii) the number and distribution of 

12 customers residing in minority and low13 and moderate-income census tracts; and 

14 (iii) the extent to which the company 

15 has adopted innovative and flexible mar16 keting methods, such as low minimum 

17 amounts to open accounts and low trans18 action fees, that facilitate the sale of secu19 rities to low- and moderate-income cus20 tomers. 

21 (B) COMMUNITY DEVELOPMENT INVEST22 MENTS.—The program shall include, as appro23 priate, a method for evaluating a securities 

24 company’s record of community development in25 vestment in each assessment area, including— 


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1 (i) the number and dollar amount of 

2 community development investments in the 

3 assessment area; and 

4 (ii) the responsiveness of the securi5 ties company, through community develop6 ment investments, to the credit, capital, 

7 and community development needs of the 

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

10 (C) SERVICE PERFORMANCE.—The pro11 gram shall include, as appropriate, a method 

12 for evaluating a securities company’s record of 

13 providing access to securities services in each 

14 assessment area, including— 

15 (i) the distribution of the company’s 

16 retail offices by income level and minority 

17 level of census tract and the range of serv18 ices offered by retail offices across census 

19 tracts by income level and minority level; 

20 (ii) the company’s record of opening 

21 or closing retail offices in the assessment 

22 area; 

23 (iii) the extent to which the securities 

24 company has adopted effective alternate 

25 service systems in minority and low- and 


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1 moderate-income neighborhoods, such as 

2 providing the means for minority and low3 and moderate-income individuals to gain 

4 electronic access to the company at work5 places, community centers, and similar lo6 cations in low- and moderate-income neigh7 borhoods; and 

8 (iv) the extent to which the securities 

9 company has provided investment edu10 cation and other investment services, such 

11 as financial counseling classes, in minority 

12 and low- and moderate-income neighbor13 hoods in the assessment area. 

14 (3) RATING.— 

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

16 year period beginning after the date of the en17 actment of this Act, the program shall provide 

18 for— 

19 (i) an evaluation and an initial rating 

20 of the performance of each securities com21 pany in meeting the obligation established 

22 under subsection (a) in each assessment 

23 area of the company; and 

24 (ii) an overall rating, based on the ini25 tial ratings pursuant to clause (i) of the 


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1 overall achievement of the securities com2 pany in meeting such obligation. 

3 (B) RATING CATEGORIES.—The rating cat4 egories used in rating the performance of any 

5 securities company shall include ‘‘Outstanding’’, 

6 ‘‘High Satisfactory’’, ‘‘Satisfactory’’, ‘‘Low Sat7 isfactory’’, ‘‘Needs-to-Improve’’, and ‘‘Substan8 tial Noncompliance’’ or such other categories as 

9 the Commission may establish by regulation. 

10 (C) TREATMENT OF INVESTMENT PRAC11 TICES WITH NEGATIVE IMPACTS.—In the case 

12 of any securities company which the Securities 

13 and Exchange Commission determines has en14 gaged in securities and investment practices 

15 which have a negative impact on any assess16 ment area of the company or has otherwise en17 gaged in any practice or provided any service in 

18 a manner which unlawfully discriminates 

19 against any person or against low- and mod20 erate-income neighborhoods, the Commission— 

21 (i) may not take any such practice 

22 into account in assessing the extent to 

23 which such company has met its obligation 

24 under subsection (a); and 


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1 (ii) shall reduce the rating that would 

2 otherwise obtain under subparagraph (A) 

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

6 (D) MAINTENANCE OF CERTAIN

7 RECORDS.—For purposes of determining wheth8 er a securities company engages in any practice 

9 or service described in subparagraph (B), the 

10 Securities and Exchange Commission may re11 quire, by regulation, securities companies to 

12 maintain records of the terms and conditions at 

13 which securities products and services were pro14 vided by the company and the terms and condi15 tions at which such securities products or serv16 ices were offered by the company even though 

17 no transaction occurred. 

18 (E) IMPROVEMENT PLAN.— 

19 (i) IN GENERAL.—Whenever a securi20 ties company receives a rating of ‘‘low sat21 isfactory’’ or lower in any assessment area, 

22 the company shall submit a improvement 

23 plan, subject to public notice and com24 ment, to the Commission. 


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1 (ii) CONTENTS OF PLAN.—Any im2 provement plan submitted to the Commis3 sion by a securities company pursuant to 

4 clause (i) shall describe how the institution 

5 intends to improve its performance in any 

6 assessment area where the company re7 ceived a rating of ‘‘low satisfactory’’ or 

8 lower. 

9 (iii) REVIEW OF PLAN.—The Commis10 sion shall review any improvement sub11 mitted under clause (i) by a securities com12 pany and either approve the plan or send 

13 it back to the company for revisions. 

14 (iv) QUARTERLY REPORTS.—After the 

15 Commission approves a improvement plan 

16 submitted by a securities company under 

17 clause (i), the company shall submit re18 ports and data on a quarterly basis so that 

19 the Commission and the general public can 

20 monitor performance. 

21 (v) ADDITIONAL LIMITATIONS.—If 

22 any securities company receives a rating of 

23 ‘‘Needs-to-improve’’ or ‘‘Substantial non24 compliance’’ in any assessment area, the 

25 Commission may not accept or approve 


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1 any application by such securities company 

2 or any merger applications involving such 

3 company. 

4 (vi) CONSIDERATION OF PERFORM5 ANCE IN CERTAIN REVIEWS.—If any secu6 rities company receives a rating of ‘‘low 

7 satisfactory’’ rating in any assessment area 

8 while such company is operating under an 

9 approved improvement plan, the Commis10 sion shall consider the progress in meeting 

11 the goals described in the improvement 

12 plan as an integral factor in reviews of any 

13 application by such securities company or 

14 any merger applications involving such 

15 company. 

16 (4) CONSIDERATION OF SECURITIES COMPANY

17 RATING.—Whenever the Commission considers an 

18 application to the Commission by a securities com19 pany, the Securities and Exchange Commission 

20 shall— 

21 (A) take into account the overall rating of 

22 the securities company under this section and 

23 any improvement plans submitted pursuant to 

24 this section; 


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

3 (C) take into account changes in the com4 munity reinvestment performance of such com5 pany since the last overall rating and the likely 

6 future community reinvestment performance of 

7 such company. 

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

9 the Securities and Exchange Commission in connection 

10 with the program under subsection (c) shall be made pub11 licly available by the Commission in a format similar to 

12 the format for public disclosure of information under the 

13 Home Mortgage Disclosure Act of 1975, as determined 

14 to be appropriate by the Commission. 

15 SEC. 106. RESPONSIVENESS TO COMMUNITY NEEDS FOR 

16 MORTGAGES AND MORTGAGE RELATED 

17 SERVICES BY MORTGAGE BANKS. 

18 (a) AFFIRMATIVE OBLIGATION.—Each mortgage 

19 bank shall have, with respect to each community com20 prising an assessment area of such mortgage bank, a con21 tinuing and affirmative obligation to meet the mortgage 

22 credit and mortgage service needs of such communities, 

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

24 neighborhoods of such communities. 


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

2 following definitions shall apply: 

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

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

5 community in which such company— 

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

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

9 total market in housing-related loans. 

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

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

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

17 and economic development. 

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

19 bank’’ means any lender who does not accept depos20 its (as defined in section 3 of the Federal Deposit 

21 Insurance Act) and originates housing-related loans. 

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 mortgage banks 

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 a mortgage bank’s record of 

11 helping to meet the mortgage credit and mort12 gage service needs of its assessment area, in13 cluding— 

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 mortgage credit extended to such cus19 tomers by the mortgage bank; 

20 (ii) the number and distribution of 

21 customers residing in minority and low22 and moderate-income neighborhoods and 

23 the dollar amounts of the mortgage credit 

24 extended to such customers by the mort25 gage bank; 


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1 (iii) the mortgage bank’s market 

2 share in neighborhoods of different racial 

3 and income characteristics; 

4 (iv) the mortgage bank’s market share 

5 to borrowers of different racial and income 

6 characteristics; 

7 (v) a comparison of the rate at which 

8 the mortgage bank rejects applications 

9 from minority and white applicants; 

10 (vi) any evidence of illegal discrimina11 tory credit practices, including 

12 prescreening, or offering less favorable 

13 loan products to applicants of different ra14 cial backgrounds; and 

15 (vii) the extent to which the mortgage 

16 bank has adopted innovative and flexible 

17 marketing methods and products that fa18 cilitate the extension of mortgage credit on 

19 a nondiscriminatory basis to low- and mod20 erate-income customers. 

21 (B) COMMUNITY DEVELOPMENT INVEST22 MENTS.—The program shall include, as appro23 priate, a method for evaluating a mortgage 

24 bank’s record of community development invest25 ment in each assessment area, including— 


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1 (i) the number and dollar amount of 

2 community development investments in the 

3 assessment area; and 

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

7 and community development needs of the 

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

10 (C) SERVICE PERFORMANCE.—The pro11 gram shall include, as appropriate, a method 

12 for evaluating a mortgage bank’s record of pro13 viding access to mortgage credit and mortgage 

14 services in each assessment area, including— 

15 (i) the distribution of the mortgage 

16 bank’s retail offices by income level and 

17 minority level of census tract and the 

18 range of services offered by retail offices 

19 across census tracts by income level and 

20 minority level; 

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

22 closing retail offices in the assessment 

23 area; 

24 (iii) the extent to which the mortgage 

25 bank has adopted effective alternate servVerDate Aug 31 2005 22:30 Mar 03, 2007 Jkt 059200 PO 00000 Frm 00030 Fmt 6652 Sfmt 6201 E:\BILLS\H1289.IH H1289

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1 ice systems in minority and low- and mod2 erate-income neighborhoods, such as pro3 viding the means for low- and moderate-in4 come individuals to gain electronic access 

5 to the mortgage bank at workplaces, com6 munity centers, and similar locations in 

7 minority and low- and moderate-income 

8 neighborhoods; 

9 (iv) the extent to which the mortgage 

10 bank has provided home purchaser and 

11 home owner education and other coun12 seling services, such as financial counseling 

13 classes, in minority and low- and mod14 erate-income neighborhoods in the assess15 ment area; 

16 (v) the mortgage bank’s market share 

17 in neighborhoods of different racial and in18 come characteristics; 

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

21 and low- and moderate-income persons; 

22 (vii) a comparison of the rate at which 

23 the mortgage bank rejects applications 

24 from minority and white applicants; and 


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1 (viii) any evidence of illegal discrimi2 natory credit practices, including 

3 prescreening, or offering less favorable 

4 loan products to applicants of different ra5 cial backgrounds. 

6 (3) RATING.— 

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

9 (i) an evaluation and an initial rating 

10 of the performance of each mortgage bank 

11 in meeting the obligation established under 

12 subsection (a) in each assessment area of 

13 the bank; and 

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

16 overall achievement of the mortgage bank 

17 in meeting such obligation. 

18 (B) RATING CATEGORIES.—The rating cat19 egories used in rating the performance of any 

20 mortgage bank shall include ‘‘Outstanding’’, 

21 ‘‘High Satisfactory’’, ‘‘Satisfactory’’, ‘‘Low Sat22 isfactory’’, ‘‘Needs-to-Improve’’, and ‘‘Substan23 tial Noncompliance’’ or such other categories as 

24 the Secretary may establish by regulation. 


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1 (C) TREATMENT OF CREDIT PRACTICES

2 WITH NEGATIVE IMPACTS.— 

3 (i) IN GENERAL.—In the case of any 

4 mortgage bank which the Secretary deter5 mines has engaged in credit practices 

6 which have a negative impact on any indi7 viduals or any assessment area of the com8 pany, such as prescreening or predatory 

9 mortgage lending, or has otherwise en10 gaged in any practice or provided any serv11 ice in a manner which unlawfully discrimi12 nates against any person or against minor13 ity or low- and moderate-income neighbor14 hoods, the Secretary— 

15 (I) may not take any such prac16 tice into account in assessing the ex17 tent to which such company has met 

18 its obligation under subsection (a); 

19 and 

20 (II) shall reduce the rating that 

21 would otherwise obtain under sub22 paragraph (A) with respect to such 

23 company, after considering the extent 

24 of such negative or discriminatory 

25 practice or service. 


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1 (ii) UNLAWFUL DISCRIMINATION AND

2 PREDATORY MORTGAGE LENDING.—For 

3 purposes of (i), the terms ‘‘predatory mort4 gage lending’’ and ‘‘unlawfully discrimi5 nates’’ include any lending or discrimina6 tory practice those that violates the Fair 

7 Housing Act, the Equal Credit Oppor8 tunity Act, the Truth in Lending Act, the 

9 Real Estate Settlement Procedures Act, 

10 the Federal Trade Commission Act, or any 

11 other consumer and fair lending law, in12 cluding the law of any State or political 

13 subdivision of any State. 

14 (D) MAINTENANCE OF CERTAIN

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

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

19 banks to maintain records of the terms and 

20 conditions at which mortgage loans and other 

21 services were provided by the company and the 

22 terms and conditions at which such mortgage 

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

25 occurred. 


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1 (E) IMPROVEMENT PLAN.— 

2 (i) IN GENERAL.—Whenever a mort3 gage bank receives a rating of ‘‘low satis4 factory’’ or lower in any assessment area, 

5 the bank shall submit a improvement plan, 

6 subject to public notice and comment, to 

7 the Secretary. 

8 (ii) CONTENTS OF PLAN.—Any im9 provement plan submitted to the Secretary 

10 by a mortgage bank pursuant to clause (i) 

11 shall describe how the bank intends to im12 prove its performance in any assessment 

13 area where the bank received a rating of 

14 ‘‘low satisfactory’’ or lower. 

15 (iii) REVIEW OF PLAN.—The Sec16 retary shall review any improvement sub17 mitted under clause (i) by a mortgage 

18 bank and either approve the plan or send 

19 it back to the bank for revisions. 

20 (iv) QUARTERLY REPORTS.—After the 

21 Secretary approves a improvement plan 

22 submitted by a mortgage bank under 

23 clause (i), the bank shall submit reports 

24 and data on a quarterly basis so that the 


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•HR 1289 IH

1 Secretary and the general public can mon2 itor performance. 

3 (v) ADDITIONAL LIMITATIONS.—If 

4 any mortgage bank receives a rating of 

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

7 Secretary may not accept or approve any 

8 application by such mortgage bank or any 

9 merger applications involving such bank. 

10 (vi) CONSIDERATION OF PERFORM11 ANCE IN CERTAIN REVIEWS.—If any mort12 gage bank receives a rating of ‘‘low satis13 factory’’ rating in any assessment area, the 

14 Secretary shall consider the progress in 

15 meeting the goals described in the improve16 ment plan as an integral factor in reviews 

17 of any application by such mortgage bank 

18 or any merger applications involving such 

19 bank. 

20 (d) CONSIDERATION OF MORTGAGE BANK’S RAT21 ING.— 

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

23 2-year period beginning after the date of the enact24 ment of this Act, the Secretary shall— 


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1 (A) conduct an examination of, and assign 

2 ratings to, mortgage banks under this sub3 section; 

4 (B) review the overall rating of each mort5 gage bank under this subsection; 

6 (C) provide opportunity for public com7 ment on such rating; and 

8 (D) review changes in the community rein9 vestment performance of such mortgage bank 

10 since the last overall rating and the likely fu11 ture community reinvestment performance of 

12 such mortgage bank. 

13 (2) NOTIFICATION OF UNSATISFACTORY PER14 FORMANCE.—If, in conjunction with a review pursu15 ant to paragraph (1), the Secretary determines that 

16 a mortgage bank has failed to meet the bank’s obli17 gations described in subsection (a) and the require18 ments of the program under this subsection or failed 

19 to make satisfactory improvements in meeting such 

20 obligations and requirements, the Secretary shall no21 tify the mortgage bank of such determination, de22 scribing the conditions giving rise to the notice. 

23 (3) AGREEMENT TO CORRECT CONDITIONS RE24 QUIRED.—Not later than 45 days after the date of 

25 receipt by a mortgage bank of a notice given under 


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•HR 1289 IH

1 paragraph (2) (or such additional period as the Sec2 retary may permit), the mortgage bank shall execute 

3 an agreement, based on an improvement plan, with 

4 the Secretary to comply with the obligations and re5 quirements applicable to the mortgage bank under 

6 this section. 

7 (4) SECRETARY MAY IMPOSE LIMITATIONS.— 

8 Until the conditions described in a notice to a mort9 gage bank under paragraph (2) are corrected, the 

10 Secretary may impose such limitations on the extent 

11 to which mortgage loans originated, held, or serviced 

12 by such mortgage bank may be acquired by the Fed13 eral Home Mortgage Corporation, the Federal Na14 tional Mortgage Association, or the Government Na15 tional Mortgage Association, as the Secretary deter16 mines to be appropriate under the circumstances 

17 and consistent with the purposes of this section. 

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

19 described in a notice to a mortgage bank under 

20 paragraph (2) are not corrected within 180 days 

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

22 notice under paragraph (2), the Secretary shall pro23 hibit the Federal Home Mortgage Corporation, the 

24 Federal National Mortgage Association, or the Gov25 ernment National Mortgage Association from acquirVerDate Aug 31 2005 22:30 Mar 03, 2007 Jkt 059200 PO 00000 Frm 00038 Fmt 6652 Sfmt 6201 E:\BILLS\H1289.IH H1289

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•HR 1289 IH

1 ing any mortgage loan originated, held, or serviced 

2 by such mortgage bank. 

3 (6) CONSULTATION.—In taking any action 

4 under this subsection, the Secretary shall consult 

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

7 SEC. 107. RESPONSIVENESS TO COMMUNITY NEEDS FOR IN8 SURANCE SERVICES. 

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

10 section is to recognize that each insurance company has, 

11 with respect to each community comprising an assessment 

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

15 neighborhoods and persons of modest means. 

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

17 following definitions shall apply: 

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

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

20 each community in which such company— 

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

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

24 total market in insurance. 


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•HR 1289 IH

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

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

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

8 and economic development. 

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

11 business of insurance to the extent of such activities. 

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

13 the Secretary of Housing and Urban Development. 

14 (c) PROGRAM.— 

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

18 meet the obligations described in subsection (a) and 

19 the requirements of the program under this sub20 section. 

21 (2) FACTORS TO BE INCLUDED.— 

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

24 for evaluating an insurance company’s record of 


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•HR 1289 IH

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

3 (i) the number and distribution of 

4 customers throughout the community, in5 cluding minority and low- and moderate-in6 come customers, and the dollar amounts of 

7 the insurance policies held by such cus8 tomers; 

9 (ii) the number and distribution of 

10 customers residing in minority and low11 and moderate-income neighborhoods and 

12 the dollar amounts of the insurance poli13 cies held by such customers; and 

14 (iii) the extent to which the company 

15 has adopted innovative and flexible mar16 keting methods and products that facilitate 

17 the sale of insurance on a nondiscrim18 inatory basis to minority and low- and 

19 moderate-income customers. 

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

23 company’s record of community development in24 vestment in each assessment area, including— 


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•HR 1289 IH

1 (i) the number and dollar amount of 

2 community development investments in the 

3 assessment area; and 

4 (ii) the responsiveness of the insur5 ance company, through community devel6 opment investments, to the credit, capital, 

7 and community development needs of the 

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

10 (C) SERVICE PERFORMANCE.—The pro11 gram shall include, as appropriate, a method 

12 for evaluating an insurance company’s record of 

13 providing access to insurance services in each 

14 assessment area, including— 

15 (i) the distribution of the insurance 

16 company’s retail offices by income level 

17 and minority level of census tract and the 

18 range of services offered by retail offices 

19 across census tracts by income level and 

20 minority level; 

21 (ii) the company’s record of opening 

22 or closing retail offices or affiliating with 

23 agents in the assessment area; 

24 (iii) the extent to which the insurance 

25 company has adopted effective alternate 


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•HR 1289 IH

1 servicing systems in minority and low- and 

2 moderate-income neighborhoods, such as 

3 providing the means for minority and low4 and moderate-income individuals to gain 

5 electronic access to the company at work6 places, community centers, and similar lo7 cations in minority and low- and moderate8 income neighborhoods; and 

9 (iv) the extent to which the insurance 

10 company has provided insurance education 

11 and other insurance services, such as fi12 nancial counseling classes, in minority and 

13 low- and moderate-income neighborhoods 

14 in the assessment areas. 

15 (3) RATING.— 

16 (A) IN GENERAL.—The program shall pro17 vide for— 

18 (i) an evaluation and an initial rating 

19 of the performance of each insurance com20 pany in meeting the obligation established 

21 under subsection (a) in each assessment 

22 area of the company; and 

23 (ii) an overall rating, based on the ini24 tial ratings pursuant to clause (i) of the 


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•HR 1289 IH

1 overall achievement of the insurance com2 pany in meeting such obligation. 

3 (B) RATING CATEGORIES.—The rating cat4 egories used in rating the performance of any 

5 insurance company shall include ‘‘Out6 standing’’, ‘‘High Satisfactory’’, ‘‘Satisfactory’’, 

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

8 ‘‘Substantial Noncompliance’’ or such other cat9 egories as the Secretary may establish by regu10 lation. 

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

13 of any insurance company which the Secretary 

14 determines has engaged in practices which have 

15 a negative impact in any assessment area of the 

16 company or has otherwise engaged in any prac17 tice or provided any service in a manner which 

18 unlawfully discriminates against any person or 

19 against any minority or low- or moderate-in20 come neighborhood, the Secretary— 

21 (i) may not take any such practice 

22 into account in assessing the extent to 

23 which such company has met its obligation 

24 under subsection (a); and 


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•HR 1289 IH

1 (ii) shall reduce the rating that would 

2 otherwise obtain under subparagraph (A) 

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

5 discriminatory practice or service. 

6 (D) MAINTENANCE OF CERTAIN

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

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

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

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

16 company even though no transaction occurred. 

17 (E) IMPROVEMENT PLAN.— 

18 (i) IN GENERAL.—Whenever an insur19 ance company receives a rating of ‘‘low 

20 satisfactory’’ or lower in any assessment 

21 area, the company shall submit a improve22 ment plan, subject to public notice and 

23 comment, to the Secretary. 

24 (ii) CONTENTS OF PLAN.—Any im25 provement plan submitted to the Secretary 


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•HR 1289 IH

1 by an insurance company pursuant to 

2 clause (i) shall describe how the institution 

3 intends to improve its performance in any 

4 assessment area where the company re5 ceived a rating of ‘‘low satisfactory’’ or 

6 lower. 

7 (iii) REVIEW OF PLAN.—The Sec8 retary shall review any improvement sub9 mitted under clause (i) by an insurance 

10 company and either approve the plan or 

11 send it back to the company for revisions. 

12 (iv) QUARTERLY REPORTS.—After the 

13 Secretary approves a improvement plan 

14 submitted by an insurance company under 

15 clause (i), the company shall submit re16 ports and data on a quarterly basis so that 

17 the Secretary and the general public can 

18 monitor performance. 

19 (v) ADDITIONAL LIMITATIONS.—If 

20 any insurance company receives a rating of 

21 ‘‘Needs-to-improve’’ or ‘‘Substantial non22 compliance’’ in any assessment area, the 

23 Secretary may not accept or approve any 

24 application by such insurance company or 


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•HR 1289 IH

1 any merger applications involving such 

2 company. 

3 (vi) CONSIDERATION OF PERFORM4 ANCE IN CERTAIN REVIEWS.—If any insur5 ance company receives a rating of ‘‘low 

6 satisfactory’’ rating in any assessment 

7 area, the Secretary shall consider the 

8 progress in meeting the goals described in 

9 the improvement plan as an integral factor 

10 in reviews of any application by such insur11 ance company or any merger applications 

12 involving such company. 

13 (d) CONSIDERATION OF INSURANCE COMPANY’S

14 RATING.— 

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

16 2-year period beginning after the date of the enact17 ment of this Act, the Secretary shall— 

18 (A) conduct an examination of and assign 

19 ratings to each insurance company under this 

20 section; 

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

23 (C) review changes in the community rein24 vestment performance of such insurance com25 pany since the last overall rating and the likely 


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•HR 1289 IH

1 future community reinvestment performance of 

2 such insurance company. 

3 (2) NOTIFICATION OF UNSATISFACTORY PER4 FORMANCE.—If, in conjunction with a review pursu5 ant to paragraph (1), the Secretary determines that 

6 an insurance company has failed to meet the com7 pany’s obligations described in subsection (a) and 

8 the requirements of the program under this sub9 section or failed to make satisfactory improvements 

10 in meeting such obligations and requirements, the 

11 Secretary shall notify the insurance company and 

12 each appropriate State insurance regulator of such 

13 determination, describing the conditions giving rise 

14 to the notice. 

15 (3) AGREEMENT TO CORRECT CONDITIONS RE16 QUIRED.—Not later than 45 days after the date of 

17 receipt by an insurance company of a notice given 

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

19 the Secretary may permit), the insurance company 

20 shall execute an agreement, based on an improve21 ment plan, with the Secretary to comply with the ob22 ligations and requirements applicable to the insur23 ance company under this section. 

24 (4) SECRETARY MAY IMPOSE LIMITATIONS.— 

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•HR 1289 IH

1 surance company under paragraph (2) are corrected, 

2 the Secretary may impose such limitations on the ex3 tent to which mortgage loans secured by real prop4 erty insured by such insurance company may be ac5 quired by the Federal Home Mortgage Corporation, 

6 the Federal National Mortgage Association, or the 

7 Government National Mortgage Association, as the 

8 Secretary determines to be appropriate under the 

9 circumstances and consistent with the purposes of 

10 this section. 

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

12 described in a notice to an insurance company under 

13 paragraph (2) are not corrected within 180 days 

14 after the date of receipt by the insurance company 

15 of a notice under paragraph (2), the Secretary 

16 shall— 

17 (A) prohibit the Federal Home Mortgage 

18 Corporation, the Federal National Mortgage 

19 Association, and the Government National 

20 Mortgage Association from acquiring any mort21 gage loan secured by real property insured by 

22 such insurance company; 

23 (B) publish notice of such failure to cor24 rect in the Federal Register; and 


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•HR 1289 IH

1 (C) notify each appropriate State insur2 ance regulator of such failure to correct. 

3 (6) CONSULTATION.—In taking any action 

4 under this subsection, the Secretary shall consult 

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

7 (e) HEALTH AND LIFE INSURANCE LINES NOT IN8 CLUDED.—This section and section 108 shall not apply 

9 to life or health lines of insurance or to insurance compa10 nies that provide only life or health insurance products. 

11 SEC. 108. SATISFACTORY RATINGS REQUIRED BY SECURI12 TIES COMPANY, MORTGAGE BANK, AND IN13 SURANCE COMPANY AFFILIATES OF FINAN14 CIAL HOLDING COMPANIES. 

15 (a) IN GENERAL.—Section 4(l)(1) of the Bank Hold16 ing Company Act of 1956 (12 U.S.C. 1843(l)(1)) is 

17 amended— 

18 (1) by striking ‘‘and’’ at the end of subpara19 graph (B); 

20 (2) by redesignating subparagraph (C) as sub21 paragraph (F); and 

22 (3) by inserting after subparagraph (B) the fol23 lowing new subparagraphs: 

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

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•HR 1289 IH

1 tory rating of meeting community needs under 

2 section 104 of the Community Reinvestment 

3 Modernization Act of 2007; 

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

5 the bank holding company have a satisfactory 

6 rating of meeting community needs under sec7 tion 106 of the Community Reinvestment Mod8 ernization Act of 2007; 

9 ‘‘(E) all of the insurance company affili10 ates of the bank holding company have a satis11 factory rating of meeting community needs 

12 under section 107 of the Community Reinvest13 ment Modernization Act of 2007; and’’. 

14 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

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

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

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

18 4(l)(1)(F)’’. 

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

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

21 amended by striking ‘‘section 4(l)(1)(C)’’ and insert22 ing ‘‘section 4(l)(1)(F)’’. 


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•HR 1289 IH

1 TITLE II—DATA DISCLOSURE 

2 REQUIREMENTS 

3 Subtitle A—Disclosure of Insurance 

4 Availability and Insurer Invest5 ment Information 

6 SEC. 201. SHORT TITLE. 

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

8 Act’’. 

9 SEC. 202. ESTABLISHMENT OF GENERAL REQUIREMENTS 

10 TO SUBMIT INFORMATION. 

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

12 Urban Development shall, by regulation, establish require13 ments for insurers to compile and submit information to 

14 the Secretary for each annual reporting period, in accord15 ance with this title. 

16 (b) CONSULTATION.—In establishing the require17 ments for the submission of information under this title, 

18 the Secretary shall consult with Federal agencies having 

19 appropriate expertise, the National Association of Insur20 ance Commissioners, State insurance regulators, statis21 tical agents, representatives of small businesses, rep22 resentatives of insurance agents (including minority insur23 ance agents), representatives of property and casualty in24 surers, and community, consumer, and civil rights organi25 zations, as appropriate. 


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1 (c) HEALTH AND LIFE INSURANCE LINES NOT IN2 CLUDED.—This title shall not apply to life or health lines 

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

4 insurance products. 

5 SEC. 203. REPORTING OF NONCOMMERCIAL INSURANCE IN6 FORMATION. 

7 (a) IN GENERAL.—The requirements established pur8 suant to section 202 to carry out this section shall— 

9 (1) be designed to ensure that information is 

10 submitted and compiled under this section as may be 

11 necessary to permit analysis and comparison of— 

12 (A) the availability and affordability of in13 surance coverage and the quality or type of in14 surance coverage, by census tract, including 

15 low- and moderate-income neighborhoods, and 

16 the race and gender of policyholders; and 

17 (B) the location of the principal place of 

18 business of insurance agents, and the location 

19 of the principal place of business of insurance 

20 agents terminated, by census tract, including 

21 low- and moderate-income neighborhoods; and 

22 (2) specify the data elements required to be re23 ported under this section and require uniformity in 

24 the definitions of the data elements. 

25 (b) INSURERS.— 


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1 (1) AGGREGATE INFORMATION.—The regula2 tions issued under section 203 shall require that 

3 each insurer for a designated line of insurance under 

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

5 compile and submit to the Secretary, for each an6 nual reporting period— 

7 (A) the total number of policies issued in 

8 such line, total exposures covered by such poli9 cies, and total amount of premiums for such 

10 policies, by designated line and by census tract, 

11 including low- and moderate-income neighbor12 hoods, in which the insured risk is located; 

13 (B) the total number of cancellations and 

14 nonrenewals (expressed in terms of policies or 

15 exposures, as determined by the Secretary), by 

16 designated line and by census tract, including 

17 low- and moderate-income neighborhoods, in 

18 which the insured risk is located; 

19 (C) the total number of— 

20 (i) licensed agents of such insurer sell21 ing insurance in the designated line, by 

22 census tract, including low- and moderate23 income neighborhoods, in which the agent’s 

24 principal place of business is located; and 


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1 (ii) such agents who were terminated 

2 by the insurer, by census tract in which 

3 the agent’s principal place of business was 

4 located; and 

5 (D) for such designated line of insurance, 

6 information that will enable the Secretary to as7 sess the aggregate loss experience for the in8 surer, by census tract, including low- and mod9 erate-income neighborhoods, in which the in10 sured risk is located. 

11 (2) SPECIFICATION OF INFORMATION FOR

12 ITEMIZED DISCLOSURE.— 

13 (A) IN GENERAL.—The regulations issued 

14 under section 202 regarding annual reporting 

15 requirements for insurers for a designated line 

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

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

18 issued under the designated line or exposure 

19 units covered by such policies, as determined by 

20 the Secretary— 

21 (i) specify the data elements that shall 

22 be submitted; 

23 (ii) provide for the submission of in24 formation on an individual insurer basis; 


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1 (iii) provide for the submission of the 

2 information with the least burden on insur3 ers, particularly small insurers, and insur4 ance agents; 

5 (iv) take into account existing statis6 tical reporting systems in the insurance in7 dustry; 

8 (v) require reporting by census tract, 

9 including low- and moderate-income neigh10 borhoods, in which the insured risk is lo11 cated; 

12 (vi) provide for the submission of in13 formation that— 

14 (I) identifies the designated line, 

15 and subline or coverage type; and 

16 (II) where applicable, distin17 guishes between the type of policy 

18 under each such subline or coverage 

19 type that provides full replacement 

20 cost and all other bases for computing 

21 claims, such as actual cash value and 

22 fair market value; 

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1 ten in a residual market from policies writ2 ten in the voluntary market; 

3 (viii) specify— 

4 (I) whether information shall be 

5 submitted on the basis of policy or ex6 posure unit; and 

7 (II) whether information, when 

8 submitted, shall be aggregated by like 

9 policyholders with like policies, except 

10 that the Secretary shall not permit 

11 such aggregation if it will adversely 

12 affect the accuracy of the information 

13 reported; 

14 (ix) in addition to reporting approvals, 

15 provide for the submission of information 

16 regarding the number of denials, cancella17 tions, and nonrenewals of policies under 

18 the designated line by census tract in 

19 which the insured risk is located, by race, 

20 gender, and income of the policyholder, 

21 and by whether the policy was issued in a 

22 voluntary or residual market; and 

23 (x) provide for the submission of in24 formation on the racial characteristics, 

25 gender, and income levels of policyholders 


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1 at the level of detail comparable to that re2 quired by the Home Mortgage Disclosure 

3 Act of 1975 (and the regulations issued 

4 thereunder). 

5 (B) RULES REGARDING OBTAINING RACIAL

6 INFORMATION.— 

7 (i) WRITING REQUIREMENT.—The in8 formation specified in subparagraph (A)(x) 

9 relating to the racial characteristics of ap10 plicants for, and policyholders of, insur11 ance shall be obtained only in accordance 

12 with the procedures for requesting and re13 cording racial information established in 

14 Regulation C of the Board of Governors of 

15 the Federal Reserve System under the 

16 Home Mortgage Disclosure Act of 1975, as 

17 in effect on the date of the enactment of 

18 this Act. 

19 (ii) NOTICE OF VOLUNTARY NATURE

20 OF QUESTION.—Any such written question 

21 shall clearly indicate that a response to the 

22 question is voluntary on the part of the ap23 plicant or policyholder, but encouraged, 

24 and that the information is being re25 quested by the Federal Government to 


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1 monitor the availability and affordability of 

2 insurance. 

3 (iii) PROVISION OF INFORMATION BY

4 AGENT OR INSURER.—If an applicant for, 

5 or policyholder of, insurance declines to 

6 provide such information, the agent or in7 surer for such insurance may provide such 

8 information. 

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

10 insurer for a designated line shall submit— 

11 (A) information required under subpara12 graphs (A), (B), and (D) of paragraph (1) and 

13 information required pursuant to paragraph 

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

15 located within each census tract any part of 

16 which is located in a State for which the insurer 

17 is offering the designated line; and 

18 (B) information required under paragraph 

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

20 SEC. 204. REPORTING OF RURAL INSURANCE INFORMA21 TION. 

22 (a) IN GENERAL.—The Secretary shall, by regula23 tion, establish requirements for insurers to annually com24 pile and submit to the Secretary information concerning 


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1 the availability, affordability, and quality or type of insur2 ance in rural areas and to small businesses. 

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

4 shall provide that the information compiled and submitted 

5 under this section shall be compiled and submitted on the 

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

7 located. 

8 SEC. 205. WAIVER OF REPORTING REQUIREMENTS. 

9 (a) WAIVER FOR STATES COLLECTING EQUIVALENT

10 INFORMATION.— 

11 (1) AUTHORITY.—Subject to the requirements 

12 under this section, the Secretary shall provide, by 

13 regulation, for the waiver of the applicability of the 

14 provisions of sections 203 and 204 for each insurer 

15 transacting business within a State referred to in 

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

17 required to be submitted under such sections that 

18 relates to agents or insured risks located in the 

19 State. 

20 (2) REQUIREMENTS.—The Secretary may make 

21 a waiver pursuant to paragraph (1) only with re22 spect to a State that the Secretary determines has 

23 in effect a law or other requirement that— 

24 (A) requires insurers to submit to the 

25 State information that is at least the same or 


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1 equivalent to the information that is required to 

2 be submitted to the Secretary pursuant to sec3 tions 203 and 204; 

4 (B) provides for adequate enforcement of 

5 such law or other requirements; and 

6 (C) provides for the same annual reporting 

7 period used by the Secretary under this title 

8 and for submission of the information to the 

9 Secretary in a timely fashion, as determined by 

10 the Secretary. 

11 (3) DURATION.—A waiver pursuant to para12 graph (1) may remain in effect only during the pe13 riod for which the State law or other requirement re14 quired under paragraph (2) remains in effect. 

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

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

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

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

19 made, the provisions of this title requiring submission of 

20 information to the Secretary regarding such tract or area 

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

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

23 been made. 

24 (c) AUTHORITY FOR SECRETARY TO OBTAIN INFOR25 MATION DIRECTLY FROM INSURERS.—If the State for 


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

2 does not submit to the Secretary the information required 

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

4 not complete, the Secretary shall require the insurers 

5 transacting business within the State to submit such infor6 mation directly to the Secretary. 

7 SEC. 206. REPORTING BY PRIVATE MORTGAGE INSURERS. 

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

9 Financial Institutions Examination Council shall deter10 mine the extent to which each insurer providing private 

11 mortgage insurance is making available to the public and 

12 submitting to the appropriate agency information regard13 ing such insurance that is equivalent to the information 

14 regarding mortgages required to be reported under the 

15 Home Mortgage Disclosure Act of 1975. 

16 (b) REPORTING UNDER THIS TITLE.— 

17 (1) CERTIFICATION OF NONCOMPLIANCE.—If, 

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

19 such Council determines that any insurer providing 

20 private mortgage insurance is not making available 

21 to the public or submitting the information referred 

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

23 available or submitted is not equivalent information 

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

25 notify the insurer of such noncompliance. If, after 


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1 the expiration of a reasonable period of time, the in2 surer has not remedied such noncompliance to the 

3 satisfaction of the Council, then the Council shall 

4 immediately certify such noncompliance to the Sec5 retary. 

6 (2) REQUIREMENT.—Upon the receipt of a cer7 tification under paragraph (1), the Secretary shall, 

8 by order, require such insurer to submit to the Sec9 retary information regarding such insurance that 

10 complies with the provisions of section 203 that are 

11 applicable to such insurance. 

12 SEC. 207. REPORTING OF INFORMATION REGARDING IN13 VESTMENTS BY INSURERS. 

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

15 Urban Development shall, by regulation, require that each 

16 insurer that makes an investment in a property or busi17 ness or extends credit shall compile and submit to the Sec18 retary for each annual reporting period, the following in19 formation: 

20 (1) DIRECT LOANS.— 

21 (A) COMMERCIAL REAL ESTATE LOANS.— 

22 The total number of loans for the purchase of 

23 commercial real estate made by the insurer, the 

24 aggregate amount of such loans, and the 

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1 cluding low- and moderate-income neighbor2 hoods, in which the real estate for which the 

3 loan was made is located. 

4 (B) SINGLE-FAMILY MORTGAGES.—The 

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

7 insurer, the aggregate amount of such loans, 

8 and the amount of each such loan, by census 

9 tract, including low- and moderate-income 

10 neighborhoods, in which the dwelling for which 

11 the loan was made is located, which information 

12 shall be disaggregated by racial characteristics, 

13 income level, and gender of the borrower under 

14 the loan. 

15 (C) COMMERCIAL AND INDUSTRIAL

16 LOANS.—The total number of commercial and 

17 industrial loans made by the insurer, the aggre18 gate amount of such loans, and the amount of 

19 each such loan, by census tract, including low20 and moderate-income neighborhoods, in which 

21 the property or business involved in the loan is 

22 located, which information shall be 

23 disaggregated by the size of business of the bor24 rower under the loan and by the ownership 

25 characteristic of the business, which shall be 


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

3 (2) LOAN PURCHASES.— 

4 (A) COMMERCIAL REAL ESTATE LOANS.— 

5 The total number of loans for the purchase of 

6 commercial real estate purchased by the in7 surer, the aggregate amount of such loans, and 

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

9 including low- and moderate-income neighbor10 hoods, in which the real estate for which the 

11 loan was made is located. 

12 (B) SINGLE-FAMILY MORTGAGES.—The 

13 total number of mortgage loans for the pur14 chase of 1- to 4-family dwellings purchased by 

15 the insurer, the aggregate amount of such 

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

17 census tract, including low- and moderate-in18 come neighborhoods, in which the dwelling for 

19 which the loan was made is located, which in20 formation shall be disaggregated by racial char21 acteristics, income level, and gender of the bor22 rower under the loan. 

23 (C) COMMERCIAL AND INDUSTRIAL

24 LOANS.—The total number of commercial and 

25 industrial loans purchased by the insurer, the 


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1 aggregate amount of such loans, and the 

2 amount of each such loan, by census tract, in3 cluding low- and moderate-income neighbor4 hoods, in which the property or business in5 volved in the loan is located, which information 

6 shall be disaggregated by the size of business of 

7 the borrower under the loan and by the owner8 ship characteristic of the business, which shall 

9 be classified as either minority-owned, women10 owned, or otherwise-owned. 

11 (3) OTHER INVESTMENTS.—For such other in12 vestments made by the insurer as the Secretary may 

13 designate pursuant to subsection (b), the total num14 ber of such investments, the aggregate amount of 

15 such investments, and the amount of each such in16 vestment, by census tract, including low- and mod17 erate-income neighborhoods, in which the property 

18 or business involved in the investment is located, as 

19 determined by the Secretary, which information shall 

20 be disaggregated by the size of business of the bor21 rower under the loan and by the ownership char22 acteristic of the business, which shall be classified as 

23 either minority-owned, women-owned, or otherwise24 owned. 

25 (b) DESIGNATION OF OTHER INVESTMENTS.— 


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

2 (a)(3), the Secretary may designate activities and in3 vestments other than the investments described in 

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

5 insurers shall compile and submit information under 

6 this section. 

7 (2) REQUIREMENT.—In making designations 

8 under this subsection, the Secretary shall designate 

9 (A) activities and investments that significantly ben10 efit low- and moderate-income families and persons, 

11 small businesses in distressed communities, or 

12 minority- or women-owned businesses, and (B) ac13 tivities and investments that contribute to the cre14 ation of jobs and economic development of distressed 

15 communities. 

16 (3) CONSIDERATIONS.—The Secretary shall 

17 specifically consider for designation under this sub18 section investments in community development fi19 nancial institutions, community development cor20 porations, State-issued bonds, and securities backed 

21 by State development funds. 

22 (c) SIZE OF BUSINESS.—The Secretary shall, by reg23 ulation, establish various categories of the sizes of busi24 nesses, for purposes of disaggregating information under 


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

2 various sizes of businesses. 

3 SEC. 208. SUBMISSION OF INFORMATION TO SECRETARY 

4 AND MAINTENANCE OF INFORMATION. 

5 (a) PERIOD OF MAINTENANCE.—Each insurer re6 quired by this title to compile and submit information to 

7 the Secretary shall maintain such information for the 3- 

8 year period beginning upon the conclusion of the annual 

9 reporting period to which such information relates. The 

10 Secretary shall maintain any information submitted to the 

11 Secretary for such period as the Secretary considers ap12 propriate and feasible to carry out the purposes of this 

13 title and to allow for historical analysis and comparison 

14 of the information. 

15 (b) SUBMISSION.—The Secretary shall issue regula16 tions prescribing a standard schedule (taking into consid17 eration the provisions of section 209(a)), format, and 

18 method for submitting information under this title to the 

19 Secretary. The format and method of submitting the infor20 mation shall facilitate and encourage the submission in a 

21 form readable by a computer. Any insurer submitting in22 formation to the Secretary may submit in writing to the 

23 Secretary any additional information or explanations that 

24 the insurer considers relevant to the decision by the in25 surer to sell insurance. 


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1 SEC. 209. AVAILABILITY AND ACCESS SYSTEM. 

2 (a) AVAILABILITY TO PUBLIC.— 

3 (1) IN GENERAL.—The Secretary shall main4 tain and make available to the public, in accordance 

5 with the requirements of this section, any informa6 tion submitted to the Secretary under this title and 

7 any information compiled by the Secretary under 

8 this title. 

9 (2) TIMING.—The Secretary shall make such 

10 information publicly available on a timetable deter11 mined by the Secretary, but not later than 9 months 

12 after the conclusion of the annual reporting period 

13 to which the information relates. 

14 (b) PUBLIC ACCESS SYSTEM.— 

15 (1) IMPLEMENTATION.—The Secretary shall 

16 implement a system to facilitate access to any infor17 mation required to be made available to the public 

18 under this title. 

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

20 provide access in the following manners: 

21 (A) ACCESS TO ITEMIZED INFORMATION.— 

22 With respect to information submitted under by 

23 insurers, on the basis of the insurer submitting 

24 the information, on the basis of the census 

25 tract, including low- and moderate-income 


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1 neighborhoods, and on any other basis the Sec2 retary considers feasible and appropriate. 

3 (B) ACCESS TO AGGREGATE INFORMA4 TION.—With respect to aggregate information 

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

6 the insurer submitting the information, and (ii) 

7 the census tract, including low- and moderate8 income neighborhoods, and on any other basis 

9 the Secretary considers feasible and appro10 priate. 

11 (c) PROTECTIONS REGARDING LOSS INFORMA12 TION.— 

13 (1) PROHIBITION OF DISCLOSURE OF LOSS IN14 FORMATION.—Notwithstanding any other provision 

15 of this title, the Secretary may not make available 

16 to the public or otherwise disclose any information 

17 submitted under this title regarding the amount or 

18 number of claims paid by any insurer, the amount 

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

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

21 (expressing the relationship of claims paid to pre22 miums) for the industry aggregate on a census tract 

23 level. 


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1 (2) PROTECTION OF IDENTITY OF INSURER.— 

2 In making available to the public or otherwise dis3 closing a loss ratio for an insurer— 

4 (A) the Secretary may not identify the in5 surer to which the loss ratio relates; and 

6 (B) the Secretary may disclose the loss 

7 ratio only in a manner that does not allow any 

8 party to determine the identity of the specific 

9 insurer to which the loss ratio relates, except 

10 parties having access to information under 

11 paragraph (3). 

12 (3) CONFIDENTIALITY OF INFORMATION DIS13 CLOSED TO GOVERNMENTAL AGENCIES.—The Sec14 retary may make information referred to in para15 graph (1) and the identity of the specific insurer to 

16 which such information relates available to any Fed17 eral entity and any State agency responsible for reg18 ulating insurance in a State and may otherwise dis19 close such information to any such entity or agency, 

20 but only to the extent such entity or agency agrees 

21 not to make any such information available or dis22 close such information to any other person. 

23 SEC. 210. DESIGNATIONS. 

24 (a) DESIGNATION OF LINES OF INSURANCE.— 


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1 (1) IN GENERAL.—The Secretary shall, by reg2 ulation, designate lines of insurance as designated 

3 lines for purposes of this title, as follows: 

4 (A) AUTOMOBILE.—The Secretary shall 

5 designate private passenger automobile insur6 ance and shall also designate any sublines and 

7 coverage types of private passenger automobile 

8 insurance that the Secretary considers appro9 priate to determine and compare the avail10 ability, affordability, and type of coverage in 

11 such line among applicable regions. 

12 (B) NONCOMMERCIAL INSURANCE FOR

13 RESIDENTIAL PROPERTY.—The Secretary shall 

14 designate homeowners insurance and dwelling 

15 fire and allied lines, and shall distinguish the 

16 coverage types in such lines by the perils cov17 ered and by market or replacement value. For 

18 purposes of this title, homeowners insurance 

19 shall not include any renters coverage or cov20 erage for the personal property of a condo21 minium owner. 

22 (2) REPORT.—At any time the Secretary deter23 mines that any line of insurance not described in 

24 paragraph (1) should be a designated line because 

25 disparities in coverage provided under such line exist 


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1 among geographic areas having different income lev2 els or racial composition, the Secretary shall submit 

3 a report recommending designating such line of in4 surance as a designated line for purposes of this title 

5 to the Committee on Banking, Finance and Urban 

6 Affairs of the House of Representatives and the ap7 propriate Committees of the Senate. 

8 (3) DURATION.— 

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

10 subparagraph (B), the Secretary shall make the 

11 designations under this subsection once every 5 

12 years, by regulation, and each line and subline 

13 or coverage type designated under such regula14 tions shall be designated for each of the first 5 

15 successive annual reporting periods occurring 

16 after issuance of the regulations. 

17 (B) ALTERATION.—During any 5-year pe18 riod referred to in subparagraph (A) in which 

19 designations are in effect, the Secretary may 

20 amend or revise the designated lines, sublines, 

21 and coverage types only by regulation and only 

22 in accordance with the requirements of this 

23 subsection. Such regulations amending or revis24 ing designations shall apply only to annual re25 porting periods beginning after the expiration 


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

2 issuance of the regulations. 

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

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

5 and notify interested parties during the 6-month period 

6 ending 6 months before the commencement of the first 

7 annual reporting period to which such designations apply. 

8 (c) OBTAINING INFORMATION.—The Secretary may 

9 require insurers to submit to the Secretary such informa10 tion as the Secretary considers necessary to make designa11 tions specifically required under this title. The Secretary 

12 may not require insurers to submit any information under 

13 this subsection that relates to any line of insurance not 

14 specifically authorized to be designated pursuant to this 

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

16 under subsection (a)(2). 

17 SEC. 211. ENFORCEMENT. 

18 (a) CIVIL PENALTIES.—Any insurer who is deter19 mined by the Secretary, after providing opportunity for 

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

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

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

23 violation continues. 

24 (b) INJUNCTION.—The Secretary may bring an ac25 tion in an appropriate United States district court for apVerDate Aug 31 2005 22:30 Mar 03, 2007 Jkt 059200 PO 00000 Frm 00074 Fmt 6652 Sfmt 6201 E:\BILLS\H1289.IH H1289

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1 propriate declaratory and injunctive relief against any in2 surer who violates the requirements referred to in sub3 section (a). 

4 (c) INSURER LIABILITY.—An insurer shall be respon5 sible under subsections (a) and (b) for any violation of 

6 a statistical agent acting on behalf of the insurer. 

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

8 (a) EXEMPTION FOR UNITED STATES PROGRAMS.— 

9 Reporting shall not be required under this title with re10 spect to insurance provided by any program underwritten 

11 or administered by the United States. 

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

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

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

15 to public disclosure, submission of information, and rec16 ordkeeping or exempting any insurer subject to this title 

17 from any obligation under, or an obligation to comply 

18 with, any such law. 

19 SEC. 213. REGULATIONS. 

20 (a) AUTHORIZATION.— 

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

22 any regulations required under this title and any 

23 other regulations that may be necessary to carry out 

24 this title. 


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1 (2) SUBSTANTIVE REGULATIONS.—The regula2 tions shall be issued in accordance with the proce3 dures under section 553 of title 5, United States 

4 Code, for substantive regulations. 

5 (3) EFFECTIVE DATE.—Except as otherwise 

6 provided in this title, such final regulations shall be 

7 issued before the end of the 18-month period begin8 ning on the date of the enactment of this Act. 

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

10 Secretary shall take into consideration the administrative, 

11 paperwork, and other burdens on insurance agents, includ12 ing independent insurance agents, involved in complying 

13 with the requirements of this title and shall minimize the 

14 burdens imposed by such requirements with respect to 

15 such agents. 

16 SEC. 214. DEFINITIONS. 

17 For purposes of this subtitle, the following definitions 

18 shall apply: 

19 (1) AGENT.—The term ‘‘agent’’— 

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

21 agent licensed by a State who sells property and 

22 casualty insurance; and 

23 (B) includes agents who are employees of 

24 the insurer, agents who are independent con25 tractors working exclusively for the insurer, and 


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1 agents who are independent contractors ap2 pointed to represent the insurer on a nonexclu3 sive basis. 

4 (2) COMMERCIAL INSURANCE.—The term 

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

6 and casualty insurance, except private passenger 

7 automobile, homeowner’s insurance and dwelling fire 

8 and allied lines, and other personal lines of insur9 ance. 

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

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

12 and payment bonds designated by the Secretary 

13 under section 210(a). 

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

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

16 an insurance policy, an expression of an exposure 

17 unit covered under the policy compared to the dura18 tion of the policy (pursuant to standards established 

19 by the Secretary for uniform reporting of expo20 sures). 

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

22 units’’ means, for purposes of section 203, an auto23 mobile or dwelling covered under an insurance policy 

24 for private passenger automobile or homeowners or 

25 dwelling fire and allied lines coverage. 


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

2 property and casualty insurance. Such term includes 

3 primary insurance, surplus lines insurance, and any 

4 other arrangement for the shifting and distributing 

5 of risks that is determined to be insurance under the 

6 law of any State in which the insurer or insurer 

7 group engages in an insurance business. 

8 (7) INSURER.—The term ‘‘insurer’’— 

9 (A) means any corporation, association, so10 ciety, order, firm, company, mutual, partner11 ship, individual, aggregation of individuals, or 

12 any other legal entity that is authorized to 

13 transact the business of property or casualty in14 surance in any State or that is engaged in a 

15 property or casualty insurance business; and 

16 (B) does not include an individual or entity 

17 which represents an insurer as agent solely for 

18 the purpose of selling or which represents a 

19 consumer as a broker solely for the purpose of 

20 buying insurance. 

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

22 respect to an insurance policy, newly issued or re23 newed. 

24 (9) JOINT UNDERWRITING ASSOCIATION.—The 

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1 incorporated association of insurers established to 

2 provide a particular form of insurance to the public. 

3 (10) MORTGAGE INSURANCE.—The term 

4 ‘‘mortgage insurance’’ means insurance against the 

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

6 for residential or commercial property. 

7 (11) PRIVATE MORTGAGE INSURANCE.—The 

8 term ‘‘private mortgage insurance’’ means mortgage 

9 insurance other than mortgage insurance made 

10 available under the National Housing Act, title 38 of 

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

12 Act of 1949. 

13 (12) PROPERTY AND CASUALTY INSURANCE.— 

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

15 (A) means insurance against loss of or 

16 damage to property, insurance against loss of 

17 income or extra expense incurred because of 

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

19 against third party liability claims caused by 

20 negligence or imposed by statute or contract; 

21 and 

22 (B) does not include workers’ compensa23 tion, professional liability, or title insurance. 

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

25 market’’— 


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1 (A) means an assigned risk plan, joint un2 derwriting association, or any similar mecha3 nism designed to make insurance available to 

4 those unable to obtain it in the voluntary mar5 ket; and 

6 (B) includes each statewide plan under 

7 part A of title XII of the National Housing Act 

8 to assure fair access to insurance requirements. 

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

10 means any area that— 

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

12 (B) has a continuous boundary; and 

13 (C) contains only areas that are rural 

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

15 the Housing Act of 1949 (except that clause 

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

17 purposes of this title). 

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

19 means the Secretary of Housing and Urban Develop20 ment. 

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

22 State, the District of Columbia, the Commonwealth 

23 of Puerto Rico, the Northern Mariana Islands, the 

24 Virgin Islands, American Samoa, and the Trust Ter25 ritory of the Pacific Islands. 


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1 SEC. 215. EFFECTIVE DATE. 

2 The requirements of this title relating to reporting 

3 of information by insurers shall take effect with respect 

4 to the first annual reporting period that begins more than 

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

6 Subtitle B—Improvements in Other 

7 Data Disclosure Requirements 

8 SEC. 221. MAINTENANCE AND DISCLOSURE OF INFORMA9 TION BY THE FINANCIAL INSTITUTIONS EX10 AMINATION COUNSEL. 

11 (a) IN GENERAL.—In collecting information from fi12 nancial institutions, and affiliates of financial institutions, 

13 under the Community Reinvestment Act of 1977 and the 

14 Home Mortgage Disclosure Act of 1975 relating to farm, 

15 small business, and home loans, and maintaining such in16 formation on and disclosing such information from the na17 tional information center database, the Financial Institu18 tions Examination Council shall identify whether the fi19 nancial institution or affiliate is transmitting such infor20 mation pursuant to the Community Reinvestment Act of 

21 1977 or the Home Mortgage Disclosure Act of 1975. 

22 (b) MAINTENANCE OF DATABASE.—The Financial 

23 Institutions Examination Council shall maintain a com24 prehensive database containing the hierarchical structure 

25 of organizations including financial holding companies, 


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1 bank holding companies, depository institutions, and non2 depository institutions. 

3 TITLE III—REGULATORY AND 

4 STRUCTURAL REFORMS 

5 SEC. 301. ANTIREDLINING REQUIREMENT FOR FINANCIAL 

6 HOLDING COMPANIES. 

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

8 1956 (12 U.S.C. 1843(l)(1)) (as amended by section 108 

9 of this Act) is amended— 

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

12 (2) by striking the period at the end of sub13 paragraph (F) (as so redesignated by such section 

14 108) and inserting ‘‘; and’’; and 

15 (3) by adding at the end the following new sub16 paragraph: 

17 ‘‘(G) in the case of any bank holding com18 pany which underwrites or sells, or any affiliate 

19 of which underwrites or sells, annuities con20 tracts or contracts insuring, guaranteeing, or 

21 indemnifying against loss, harm, damage, ill22 ness, disability, or death— 

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

24 been adjudicated in any Federal court, and 

25 has not entered into a consent decree filed 


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1 in a Federal court or into a settlement 

2 agreement, premised upon a violation of 

3 the Fair Housing Act for the activities de4 scribed in this subparagraph; or 

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

6 entered into any such consent decree or 

7 settlement agreement, the company or the 

8 affiliate is not in violation of the decree or 

9 settlement agreement as determined by a 

10 court of competent jurisdiction or the 

11 agency with which the decree or agreement 

12 was entered into.’’. 

13 SEC. 302. NOTICE AND PUBLIC COMMENT REQUIRED BE14 FORE ESTABLISHING A FINANCIAL HOLDING 

15 COMPANY. 

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

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

18 to read as follows: 

19 ‘‘(6) NOTICE AND OPPORTUNITY FOR COMMENT

20 REQUIRED.— 

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

22 company shall directly or indirectly acquire, and 

23 no company that becomes a financial holding 

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1 cluding through merger, consolidation, or other 

2 type of business combination, that is engaged in 

3 activities permitted under this subsection or 

4 subsection (n) or (o), unless— 

5 ‘‘(i) such holding company has pro6 vided notice to the Board, not later than 

7 60 days prior to such proposed acquisition 

8 or prior to becoming a financial holding 

9 company, and during that time period, or 

10 such longer time period not exceeding an 

11 additional 60 days, as established by the 

12 Board; 

13 ‘‘(ii) the Board has provided public 

14 notice and opportunity for comment for 

15 not less than 30 days; and 

16 ‘‘(iii) the Board has not issued a no17 tice disapproving the proposed acquisition 

18 or retention. 

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

20 reviewing any prior notice filed under this para21 graph, the Board shall take into consider22 ation— 

23 ‘‘(i) whether the company is in com24 pliance with all applicable criteria set forth 


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1 in subsection (b) and the provisions of sub2 section (d); 

3 ‘‘(ii) whether the proposed combina4 tion represents an undue aggregation of 

5 resources; 

6 ‘‘(iii) whether the proposed combina7 tion poses a risk to the deposit insurance 

8 system; 

9 ‘‘(iv) whether the proposed combina10 tion poses a risk to State insurance guar11 anty funds; 

12 ‘‘(v) whether the proposed combina13 tion can reasonably be expected to be in 

14 the best interests of depositors or policy15 holders of the respective entities; 

16 ‘‘(vi) whether the proposed trans17 action can reasonably be expected to fur18 ther the purposes of this Act and produce 

19 benefits to the public; 

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

21 which, the proposed combination poses an 

22 undue risk to the stability of the financial 

23 system in the United States; and 


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1 ‘‘(viii) the community reinvestment 

2 record of all parties to the proposed trans3 action. 

4 ‘‘(C) REQUIRED INFORMATION.—The 

5 Board may disapprove any prior notice filed 

6 under this paragraph if the company submitting 

7 such notice neglects, fails, or refuses to furnish 

8 to the Board all relevant information required 

9 by the Board. 

10 ‘‘(D) SOLICITATION OF VIEWS OF OTHER

11 SUPERVISORY AGENCIES.— 

12 ‘‘(i) IN GENERAL.—Upon receiving a 

13 prior notice under this paragraph, in order 

14 to provide for the submission of their views 

15 and recommendations, the Board shall give 

16 notice of the proposal to— 

17 ‘‘(I) the appropriate Federal 

18 banking agency of any bank involved; 

19 ‘‘(II) the appropriate functional 

20 regulator of any functionally regulated 

21 nondepository institution (as defined 

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

23 ‘‘(III) the Secretary of the Treas24 ury, the Attorney General, and the 

25 Federal Trade Commission. 


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1 ‘‘(ii) TIMING.—The views and rec2 ommendations of any agency provided no3 tice under this paragraph shall be sub4 mitted to the Board not later than 30 cal5 endar days after the date on which notice 

6 to the agency was given, unless the Board 

7 determines that another shorter time pe8 riod is appropriate.’’ 

9 SEC. 303. PUBLIC MEETINGS FOR BANK ACQUISITIONS AND 

10 MERGERS. 

11 (a) BANK HOLDING COMPANY ACT OF 1956.—Sec12 tion 3(c)(2) of the Bank Holding Company Act of 1956 

13 (12 U.S.C. 1842(c)(2)) is amended— 

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

15 inserting ‘‘FACTORS.— 

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

17 (2) by adding at the end the following new sub18 paragraph: 

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

20 each application for approval under this section, 

21 the Board shall, as necessary and on a timely 

22 basis, conduct public meetings in 1 or more 

23 areas where the Board believes, in the sole dis24 cretion of the Board, there will be a substantial 

25 public impact.’’. 


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1 (b) FEDERAL DEPOSIT INSURANCE ACT.—Section 

2 18(c) of the Federal Deposit Insurance Act (12 U.S.C. 

3 1828(c)) is amended by adding at the end the following 

4 new paragraph: 

5 ‘‘(12) PUBLIC MEETINGS.—In each merger trans6 action involving 1 or more insured depository institutions, 

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

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

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

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

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

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

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

20 the Comptroller believes, in the sole discretion of the 

21 Comptroller, there will be a substantial public impact.’’. 

22 (d) HOME OWNERS’ LOAN ACT.—Section 10(e) of 

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

24 by adding at the end the following new paragraph: 


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1 ‘‘(7) PUBLIC MEETINGS FOR DEPOSITORY IN2 STITUTION ACQUISITIONS AND MERGERS.—In each 

3 case involving an application under this subsection, 

4 the Director shall, as necessary and on a timely 

5 basis, conduct public meetings in 1 or more areas 

6 where the Director believes, in the sole discretion of 

7 the Director, there will be a substantial public im8 pact.’’. 

9 SEC. 304. BRANCH CLOSURE REQUIREMENTS. 

10 Subsection (a) of section 42 of the Federal Deposit 

11 Insurance Act (12 U.S.C. 1831r–1(a)) is amended by add12 ing at the end the following new paragraphs: 

13 ‘‘(3) PUBLIC COMMENT.—Upon receiving a no14 tice from an insured depository institution pursuant 

15 to paragraph (1), the appropriate Federal banking 

16 agency shall— 

17 ‘‘(A) promptly initiate a 30-day period for 

18 receiving public comment on the proposed clos19 ing of a branch of the depository institution; 

20 and 

21 ‘‘(B) provide adequate notice of such pub22 lic comment period in media of general circula23 tion or public broadcast in the area served by 

24 such branch. 


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1 ‘‘(4) PUBLIC MEETING FOR DISCUSSION OF AL2 TERNATIVES.—If, during any period for public com3 ment under paragraph (3) on the proposed closing 

4 of a branch of the depository institution, the appro5 priate Federal banking agency soliciting such com6 ments receives a request for a public hearing on the 

7 proposal, the agency shall promptly schedule a pub8 lic meeting to be held at least 30 days before the 

9 date of the proposed closure at a convenient location 

10 in the vicinity of such branch so that alternatives to 

11 closure can be considered by all stakeholders.’’. 

12 SEC. 305. CRA EXAMINATION SCHEDULE FOR SMALL 

13 BANKS. 

14 Section 809(a) of the Community Reinvestment Act 

15 of 1977 (12 U.S.C. 2908(a)) is amended to read as fol16 lows: 

17 ‘‘(a) IN GENERAL.—All regulated financial institu18 tions shall be examined under this title at least once in 

19 each 2-year period and the scheduling of regularly occur20 ring examinations may not take into account the size or 

21 the aggregate assets of the financial institution.’’. 

22 SEC. 306. CRA SUNSHINE REQUIREMENTS. 

23 Section 48 of the Federal Deposit Insurance Act (12 

24 U.S.C. 1831y) (as added by section 711 of the Gramm25 Leach-Bliley Act) is hereby repealed. 


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1 SEC. 307. CONTINUING COMMUNITY REINVESTMENT RE2 QUIREMENT FOR FINANCIAL HOLDING COM3 PANIES. 

4 (a) IN GENERAL.—Section 4(l)(2) of the Bank Hold5 ing Company Act of 1956 (12 U.S.C. 1843(l)(2)) is 

6 amended— 

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

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

11 (b) TECHNICAL AND CONFORMING AMENDMENT.— 

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

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

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

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

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

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

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

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

21 subsection (l)’’. 

22 SEC. 308. CHANGES IN REPORTING REQUIREMENTS UNDER 

23 THE HOME MORTGAGE DISCLOSURE ACT OF 

24 1975. 

25 (a) PROHIBITION ON REGULATORY EXEMPTIONS

26 FROM REPORTING REQUIREMENTS.—Section 304 of the 


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1 Home Mortgage Disclosure Act of 1975 (12 U.S.C. 2803) 

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

4 ‘‘(n) PROHIBITION ON REGULATORY EXEMPTIONS

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

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

8 as authorizing the Board, the Secretary, or any 

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

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

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

14 Code of Federal Regulations for lending institutions 

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

16 amount of purchase loans originated in any year did 

17 not exceed 10 percent of the total dollar amount of 

18 all loan originations by such institution in such year, 

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

21 Act of 2007.’’ 

22 (b) REPORTING OF ADDITIONAL DATA REQUIRED.— 

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

24 1975 (12 U.S.C. 2803(b)) is amended— 


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1 (1) by striking ‘‘and’’ at the end of paragraph 

2 (3); 

3 (2) by striking the period at the end of para4 graph (4) and inserting a semicolon; and 

5 (3) by adding at the following new paragraph: 

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

8 origination fees, financing of lump sum insurance 

9 premium payments, balloon payment, prepayment 

10 penalties, loan-to-value ratios, debt-to-income ratios, 

11 housing payment-to-income ratios, and credit score 

12 information; and’’. 

13 (c) REPORTING ON MANUFACTURED HOME LOANS

14 THAT ARE NOT TREATED BY THE DEPOSITORY INSTITU15 TION AS REAL ESTATE LOANS.— 

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

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

18 2803(b)) is amended by inserting after paragraph 

19 (5) (as added by subsection (B) of this section) the 

20 following new paragraph: 

21 ‘‘(6) the number and dollar amount of mort22 gage loans secured by manufactured homes (as de23 fined in section 603 of the National Manufactured 

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


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1 (2) MORTGAGE LOAN DEFINED TO INCLUDE

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

3 the Home Mortgage Disclosure Act of 1975 (12 

4 U.S.C. 2802(1)) is amended by inserting ‘‘or a man5 ufactured home’’ after ‘‘residential real property’’. 

6 (d) ENFORCEMENT POWERS FOR SECRETARY.—Sec7 tion 305 of the Home Mortgage Disclosure Act of 1975 

8 (12 U.S.C. 2804) is amended by inserting at the end the 

9 following new subsection: 

10 ‘‘(d) AUTHORITY TO CARRY OUT SUBSECTION

11 (b)(4).—For purposes of enforcing compliance with the re12 quirements of this title pursuant to subsection (b)(4)— 

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

14 the Federal Deposit Insurance Act shall apply to de15 pository institutions described in section 303(2)(B) 

16 in the same manner they apply to depository institu17 tions (as defined in section 3 of the Federal Deposit 

18 Insurance Act); and 

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

20 and duties under such subsections with respect to 

21 depository institutions described in section 

22 303(2)(B) as an appropriate Federal banking agen23 cy (as defined in such Act) has with respect to deVerDate Aug 31 2005 22:30 Mar 03, 2007 Jkt 059200 PO 00000 Frm 00094 Fmt 6652 Sfmt 6201 E:\BILLS\H1289.IH H1289

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1 pository institutions (as defined in section 3 of the 

2 Federal Deposit Insurance Act).’’. 

Æ 


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