SEC. 4. MORTGAGE BANK COMMUNITY SUPPORT STATE-
MENTS.
(a) IN GENERAL.—The Office shall, on a biennial
basis, require each mortgage bank to submit to the Office
a community support statement, detailing the efforts of
such bank at meeting the housing credit needs of each
community in which the bank makes a significant number
of extensions of credit or extends a significant amount of
credit, including extensions of credit in low- and moderate-
income neighborhoods of such communities.
(b) CONTENTS.—The statement submitted by each
mortgage bank under subsection (a) shall include—
(1) the data required to be maintained and dis-
closed by the lender under the Home Mortgage Dis-
closure Act of 1975 for the previous 2 years, in a
format which the Office shall establish;
(2) underwriting criteria employed by the bank
for all of the bank’s housing loan products;
(3) descriptions of any activity the bank has
undertaken over the period under review to ascertain
and meet identified credit needs in low- and mod-
erate-income neighborhoods within communities in
which the bank makes a significant number of exten-
sions of credit or extends a significant amount of
credit, including any partnerships formed with com-
munity-based organizations, nonprofit developers of
affordable housing, or agencies of State or local
government;
(4) details of any findings of technical or sub-
stantive violations of the Equal Credit Opportunity
Act or the Fair Housing Act, and any settlements
or judgments arising from any such findings; and
(5) any other information the Office may
require.
SEC. 5. MORTGAGE BANK COMMUNITY SUPPORT EVALUA-
TION.
The Office shall determine whether a mortgage bank
is maintaining an adequate community support perform-
ance, based on—
(1) community support performance statements
received from mortgage banks;
(2) an analysis of the data required to be main-
tained and disclosed by the lender under the Home
Mortgage Disclosure Act of 1975 for the previous 2
years with respect to metropolitan statistical areas
in which the bank originates a significant number of
home loans, which shall emphasize—
(A) the institution’s market share in neigh-
borhoods of different racial and income charac-
teristics;
(B) the number of applications received
from minorities and low- and moderate-income
persons; and
(C) the rate at which the institutions re-
jects applications from minority and white ap-
plicants;
(3) any evidence of illegal discriminatory credit
practices, including prescreening, or offering less fa-
vorable loan products to applicants of different ra-
cial backgrounds; and
(4) public comment, which shall be received by
the agency for not less than 90 days after the Office
actively solicits comment solicitations of comment
through notice in the Federal Register and regular
communications with community based organiza-
tions.
SEC. 6. PENALTIES FOR FINDING OF INADEQUATE COMMU-
NITY SUPPORT PERFORMANCE BY MORT-
GAGE BANKS.
(a) REMEDIAL ACTION.—If the Secretary finds that
a mortgage bank is maintaining an inadequate level of
community support, the Secretary may issue an order—
(1) requiring the bank to file a community sup-
port action plan with the Office not more than 90
days after the finding, which shall include concrete
goals and timetables for correcting identified defi-
ciencies; and
(2) prohibiting the bank from using any pro-
gram or product administered by the Secretary until
all identified deficiencies are met.
(b) CEASE AND DESIST ORDERS.—
(1) ISSUANCE OF ORDER.—
(A) IN GENERAL.—If the Secretary deter-
mines that there is reasonable cause to believe
that a mortgage bank is violating, has violated,
or is about to violate an order under subsection
(a) or a community support action plan filed
pursuant to such an order, the Secretary may
issue an order requiring the mortgage bank
to—
(i) cease and desist from any such vio-
lation; and
(ii) take such affirmative action to
prevent the occurrence or the continuance
of such violation as the Secretary deter-
mines to be appropriate.
(B) NOTICE OF CHARGES.—An order is-
sued under this paragraph shall include a notice
of the charges on which the order is based and
a statement of the facts constituting the alleged
violation.
(C) EFFECTIVE PERIOD.—An order issued
under this paragraph shall—
(i) become effective upon service to
the mortgagee; and
(ii) remain effective and enforceable
pursuant to the terms of the order unless
modified or rescinded by the Secretary or
pursuant to an order of a court under
paragraph (3) or in connection with the
court’s review of any administrative pro-
ceedings with respect to the order issued
under this subsection.
(2) HEARING.—Any mortgage bank which re-
ceives an order under paragraph (1) shall be af-
forded an opportunity for a hearing on the record by
the Secretary as soon as practicable but not later
than 20 days after the order has been served.
(3) JUDICIAL HEARING.—Within 10 days after
a mortgage bank has been served with a cease-and-
desist order under this subsection, the bank may
apply to the United States district court for the ju-
dicial district in which the home office of the bank
is located, or the United States District Court for