I 
117TH CONGRESS 
2D SESSION 
H. R. 8833 
To amend the Community Reinvestment Act of 1977 to improve the assess-
ment process for financial institutions under that Act, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 15, 2022 
Ms. WATERS introduced the following bill; which was referred to the 
Committee on Financial Services 
A BILL 
To amend the Community Reinvestment Act of 1977 to 
improve the assessment process for financial institutions 
under that Act, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Making Communities 
Stronger through the Community Reinvestment Act’’. 
SEC. 2. FINDING. 
The Congress finds that Senator William Proxmire, 
who authored the Community Reinvestment Act of 1977 
legislation, testified when discussing its purpose: ‘‘By red-
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lining . . . I am talking about the fact that banks and 
savings and loans will take their deposits from a commu-
nity and instead of reinvesting them in that community, 
they will actually or figuratively draw a red line on a map 
around the areas of their city, sometimes in the inner city, 
sometimes in the older neighborhoods, sometimes ethnic 
and sometimes black, but often encompassing a great area 
of their neighborhood.’’. 
SEC. 3. ASSESSMENT OF COMMUNITY SERVICE. 
(a) IN GENERAL.—Section 804 of the Community 
Reinvestment Act of 1977 (12 U.S.C. 2903) is amended 
by adding at the end the following: 
‘‘(e) ASSESSMENT OF COMMUNITY SERVICE.— 
‘‘(1) IN
GENERAL.—In assessing and taking 
into account, under subsection (a), any community 
service or charity work performed by the executives, 
board members, and employees of a financial institu-
tion, the appropriate Federal financial supervisory 
agency may not give any credit for such service or 
work unless— 
‘‘(A) the executives, board members, and 
employees performing such service or work were 
acting as representatives of the financial insti-
tution at the time the service or work were per-
formed; 
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‘‘(iv) serves low-income individuals 
and families; 
‘‘(v) supports small businesses or 
small farms with gross annual revenues of 
$250,000 or less; 
‘‘(vi) directly facilitates the acquisi-
tion, construction, development, preserva-
tion, or improvement of affordable housing 
in high opportunity areas; 
‘‘(vii) benefits Native communities, 
such as— 
‘‘(I) revitalization activities in 
Native Land Areas; 
‘‘(II) essential community facili-
ties in Native Land Areas; 
‘‘(III) essential community infra-
structure in Native Land Areas; and 
‘‘(IV) disaster preparedness and 
climate resiliency activities in Native 
Land Areas; 
‘‘(viii) reflects a high degree of en-
gagement with community partners, and 
are highly responsive to the needs of low- 
income communities; 
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‘‘(ix) result in a new community devel-
opment financing product or service that 
addresses community development needs 
for low- or moderate-income individuals 
and families; or 
‘‘(x) serves limited English proficient 
communities. 
‘‘(2) DEFINITIONS.—In this subsection: 
‘‘(A) COMMUNITY
DEVELOPMENT
FINAN-
CIAL INSTITUTION.—The term ‘community de-
velopment financial institution’ has the meaning 
given that term under section 103 of the Riegle 
Community Development and Regulatory Im-
provement Act of 1994 (12 U.S.C. 4702). 
‘‘(B) HIGH
OPPORTUNITY
AREA.—The 
term ‘high opportunity area’ means an area— 
‘‘(i) designated by— 
‘‘(I) the Secretary of Housing 
and Urban Development as a Difficult 
Development Area; or 
‘‘(II) a State or local qualified al-
location plan as a high opportunity 
area; and 
‘‘(ii) with a poverty rate below— 
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‘‘(I) 10 percent, with respect to a 
metropolitan area; or 
‘‘(II) 15 percent, with respect to 
an area that is not a metropolitan 
area. 
‘‘(C) NATIVE LAND AREA.—The term ‘Na-
tive Land Area’ means— 
‘‘(i) all land within the limits of any 
Indian reservation under the jurisdiction of 
the Federal Government, as described in 
section 1151(a) of title 18, United States 
Code; 
‘‘(ii) all dependent Indian commu-
nities within the borders of the United 
States whether within the original or sub-
sequently acquired territory thereof, and 
whether within or without the limits of a 
State, as described in section 1151(b) of 
title 18, United States Code; 
‘‘(iii) all Indian allotments, the Indian 
titles to which have not been extinguished, 
including rights-of-way running through 
the same, as defined in section 1151(c) of 
title 18, United States Code; 
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‘‘(iv) any land held in trust by the 
United States for Native Americans, as de-
scribed in section 3765(1)(A) of title 38, 
United States Code; 
‘‘(v) reservations established by a 
State government for a Tribe or Tribes 
recognized by the State; 
‘‘(vi) any Alaska Native village as de-
fined in section 3 of the Alaska Native 
Claims Settlement Act (43 U.S.C. 1602); 
‘‘(vii) lands that have the status of 
Hawaiian Home Lands as defined in sec-
tion 204 of the Hawaiian Homes Commis-
sion Act, 1920 (42 Stat. 108); 
‘‘(viii) areas defined by the Bureau of 
the Census as Alaska Native Village Sta-
tistical Areas, Oklahoma Tribal Statistical 
Areas, Tribal-Designated Statistical Areas, 
or American Indian Joint-Use Areas; and 
‘‘(ix) land areas of State-recognized 
Indian tribes and heritage groups that are 
defined and recognized by individual States 
and included in the annual Boundary and 
Annexation Survey of the Bureau of the 
Census. 
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‘‘(D) PERSISTENT
POVERTY
COUNTY.— 
Term ‘persistent poverty county’ means a coun-
ty that has had poverty rates of 20 percent or 
more for the past 30 years, as measured by the 
most recent decennial censuses.’’. 
(b) EFFECTIVE DATE.—Section 804(e) of the Com-
munity Reinvestment Act of 1977, as added by subsection 
(a), shall take effect after the end of the 90-day period 
beginning on the date of enactment of this Act. 
SEC. 4. TREATMENT OF ILLEGAL AND DISCRIMINATORY 
ACTIVITY. 
Section 804 of the Community Reinvestment Act of 
1977 (12 U.S.C. 2903), as amended by section 3, is fur-
ther amended by adding at the end the following: 
‘‘(f) TREATMENT OF ILLEGAL OR DISCRIMINATORY 
ACTIVITY.— 
‘‘(1) IN
GENERAL.—In assessing and taking 
into account, under subsection (a), the record of a 
financial institution, the appropriate Federal finan-
cial supervisory agency shall give negative credit for 
any activity of the financial institution, a subsidiary 
of the financial institution, or an entity partnering 
with the financial institution or subsidiary that in-
cludes evidence of an illegal or discriminatory prac-
tice, including— 
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‘‘(A) activity that harms, including by dis-
placing, residents of low- and moderate-income 
neighborhoods; 
‘‘(B) any violation of Federal law, regard-
less of whether the violation is credit-related or 
not, including any violation of section 987(b) of 
title 10, United States Code (commonly re-
ferred to as the ‘Military Lending Act’), the 
Servicemembers Civil Relief Act, or prohibitions 
against unfair, deceptive, or abusive acts or 
practices; 
‘‘(C) any violation of State law; and 
‘‘(D) any evidence of discriminatory prac-
tices obtained by— 
‘‘(i) the Bureau of Consumer Finan-
cial Protection as a part of the Bureau’s 
regular supervision of the financial institu-
tion, subsidiary, or entity; and 
‘‘(ii) the Department of Housing and 
Urban Development. 
‘‘(2) CONSIDERATIONS.—In determining the 
treatment of any illegal or discriminatory activity de-
scribed under paragraph (1), the appropriate Fed-
eral financial supervisory agency shall consider— 
‘‘(A) the root cause of the activity; 
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‘‘(B) the severity of the harm to individ-
uals and communities as a result of the activity; 
‘‘(C) the duration of time of the activity; 
and 
‘‘(D) the pervasiveness of the activity. 
‘‘(3) TREATMENT ON TESTS AND OVERALL AS-
SESSMENT.—If, in performing an assessment of a fi-
nancial institution under subsection (a), the appro-
priate Federal financial supervisory agency uses sep-
arate tests or other evaluations as part of the cal-
culation of the overall assessment, the agency shall 
give negative credit on both the overall assessment 
and any applicable test or evaluation.’’. 
SEC. 5. COMMUNITY ADVISORY COMMITTEES. 
Section 804 of the Community Reinvestment Act of 
1977 (12 U.S.C. 2903), as amended by section 4, is fur-
ther amended by adding at the end the following: 
‘‘(g) COMMUNITY ADVISORY COMMITTEES.— 
‘‘(1) IN GENERAL.—Each financial institution 
shall form a separate Community Advisory Com-
mittee (which shall be composed of a diverse set of 
consumer, housing, community development, and 
other stakeholder groups representing the applicable 
metropolitan statistical area) in each of the fol-
lowing: 
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‘‘(A) With respect to a financial institution 
with consolidated assets equal to or greater 
than $2,000,000,000, each metropolitan statis-
tical area where the financial institution or any 
subsidiaries of the financial institution have a 
branch or other facility (including an automated 
teller machine) and each metropolitan statistical 
area where the financial institution has a sub-
stantial number of customers who maintain de-
posit accounts with the financial institution. 
‘‘(B) With respect to a financial institution 
with 
consolidated 
assets 
of 
less 
than 
$2,000,000,000, each State where the financial 
institution or any subsidiaries of the financial 
institution are located. 
‘‘(2) QUARTERLY CONSULTATION.—The execu-
tives of a financial institution shall meet with all the 
financial institution’s Community Advisory Commit-
tees on a quarterly basis— 
‘‘(A) to discuss the financial institution’s 
current work to meet the credit and deposit 
needs of low- and moderate-income individuals 
and underserved communities, persons with dis-
abilities, LGBTQ+ communities, and Chinese, 
Asian Indian, Filipino, Japanese, Korean, Viet-
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namese, Pakistani, Cambodian, Hmong, Lao-
tian, Thai, Taiwanese, Burmese, Bangladeshi, 
Nepalese, Indonesian, Malaysian, Hispanic or 
Latino, Black or African American, American 
Indian and Alaska Native, Native Hawaiian, 
Samoan, 
Chamorro, 
Tongan, 
iTaukei, 
Marshallese, and Other Pacific Islander com-
munities, as applicable to the financial institu-
tion’s geographic areas; 
‘‘(B) with respect to a financial institution 
with consolidated assets equal to or greater 
than $2,000,000,000, to assist the executives in 
developing and updating a plan for how the in-
stitution will work to meet the credit needs of 
the institution’s entire community, including 
low- and moderate-income neighborhoods; and 
‘‘(C) to discuss the institution’s data 
(which shall be disaggregated by Chinese, Asian 
Indian, Filipino, Japanese, Korean, Vietnamese, 
Pakistani, Cambodian, Hmong, Laotian, Thai, 
Taiwanese, Burmese, Bangladeshi, Nepalese, 
Indonesian, Malaysian, Hispanic or Latino, 
Black or African American, American Indian 
and Alaska Native, and Native Hawaiian, Sa-
moan, Chamorro, Tongan, iTaukei, Marshallese 
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and Other Pacific Islander communities, as ap-
plicable to the financial institution’s geographic 
areas) on— 
‘‘(i) mortgage lending and lending to 
small businesses and small farms; 
‘‘(ii) retail products and services; 
‘‘(iii) community development services; 
and 
‘‘(iv) community development financ-
ing. 
‘‘(3) SPECIFIC CONSULTATIONS.—In addition to 
the quarterly consultations required under para-
graph (2), the executives of a financial institution 
with 
consolidated 
assets 
of 
more 
than 
$2,000,000,000 shall meet with the Community Ad-
visory Committee before— 
‘‘(A) the financial institution applies for a 
merger or acquisition; 
‘‘(B) the financial institution, or any sub-
sidiary of the financial institution, applies for 
deposit insurance; 
‘‘(C) the financial institution applies to 
open a new branch or to relocate an existing 
branch; or 
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‘‘(D) the financial institution provides no-
tice that it would close a branch or other facil-
ity.’’. 
SEC. 6. CONSIDERATION OF LENDING IN PARTNERSHIP 
WITH NON-DEPOSITORY LENDERS. 
Section 804 of the Community Reinvestment Act of 
1977 (12 U.S.C. 2903), as amended by section 5, is fur-
ther amended by adding at the end the following: 
‘‘(h) CONSIDERATION OF LENDING IN PARTNERSHIP 
WITH NON-DEPOSITORY LENDERS.— 
‘‘(1) IN GENERAL.—As part of assessing a fi-
nancial institution under subsection (a), the appro-
priate Federal financial supervisory agency shall 
evaluate the financial institution’s performance in 
originating small farm loans, consumer loans (in-
cluding residential mortgages, unsecured installment 
loans, advances, and lines of credit), and loans for 
small businesses (including unsecured installment 
loans, advances, and lines of credit) in partnership 
with one or more non-depository lenders. 
‘‘(2) AFFORDABILITY AND SUSTAINABILITY.— 
In making the evaluation described under paragraph 
(1), the appropriate Federal financial supervisory 
agency shall consider the affordability and sustain-
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ability of the loan originations made in partnership 
with one or more non-depository lenders. 
‘‘(3) DEFINITIONS.—In this subsection: 
‘‘(A) 
NON-DEPOSITORY
LENDER.—The 
term ‘non-depository lender’ means a lender 
that is not an insured depository institution (as 
defined in section 3 of the Federal Deposit In-
surance Act (12 U.S.C. 1813)). 
‘‘(B) SMALL BUSINESS.—The term ‘small 
business’ means a small business concern (as 
defined under section 3 of the Small Business 
Act (15 U.S.C. 632)), except such term shall 
not include any small business concern with 
gross 
annual 
revenue 
of 
greater 
than 
$5,000,000 for the preceding fiscal year. 
‘‘(C) SMALL
FARM
LOAN.—The term 
‘small farm loan’ means a loan— 
‘‘(i) originated in an amount of 
$500,000 or less; and 
‘‘(ii) that is reported as a— 
‘‘(I) loan to finance agricultural 
production and other loan to farmers; 
or 
‘‘(II) loan secured by farmland.’’. 
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SEC. 7. CONSIDERATION OF SMALL HOME MORTGAGE 
LENDING. 
Section 804 of the Community Reinvestment Act of 
1977 (12 U.S.C. 2903), as amended by section 6, is fur-
ther amended by adding at the end the following: 
‘‘(i) CONSIDERATION OF SMALL HOME MORTGAGE 
LENDING.— 
‘‘(1) IN GENERAL.—As part of assessing a fi-
nancial institution under subsection (a), the appro-
priate Federal financial supervisory agency shall 
evaluate the financial institution’s performance in 
facilitating home mortgage lending targeted to low- 
and moderate-income borrowers in a safe and sound 
manner, including— 
‘‘(A) small-dollar, first-lien mortgages of 
$100,000 or less in value that facilitate a home 
purchase or help a borrower to refinance an ex-
isting mortgage; and 
‘‘(B) mortgages of any size originated in 
cooperation with a minority depository institu-
tion, women’s depository institution, low-income 
credit union, or a community development fi-
nancial institution certified by the Secretary of 
the Treasury (as defined under section 103 of 
the Riegle Community Development and Regu-
latory Improvement Act of 1994). 
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‘‘(2) DATA
COLLECTION
AND
REPORTING
BY 
LARGE FINANCIAL INSTITUTIONS.— 
‘‘(A) IN GENERAL.—Each large financial 
institution shall collect, maintain, and report to 
the appropriate Federal financial supervisory 
agency— 
‘‘(i) mortgage loan data needed to cal-
culate retail lending volume and distribu-
tion metrics; 
‘‘(ii) information related to demo-
graphics of borrowers, including the in-
come, gender identity, sexual orientation, 
race, and ethnicity of mortgage applicants; 
‘‘(iii) the number of mortgage loans 
originated with a value of $100,000 or 
less, as well as the demographics of bor-
rowers, including income, gender, race, and 
ethnicity; and 
‘‘(iv) if the financial institution has a 
special purpose credit program that fo-
cuses on borrowers from Hispanic or 
Latino, Black or African American, Chi-
nese, Asian Indian, Filipino, Japanese, Ko-
rean, Vietnamese, Pakistani, Cambodian, 
Hmong, Laotian, Thai, Taiwanese, Bur-
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mese, Bangladeshi, Nepalese, Indonesian, 
Malaysian, American Indian and Alaska 
Native, 
Native 
Hawaiian, 
Samoan, 
Chamorro, Tongan, iTaukei, Marshallese, 
and Other Pacific Islander communities, 
all mortgage loans originated by the finan-
cial institution under such program that 
are made for the purpose of a home pur-
chase or to refinance a mortgage loan 
made for the purpose of a home purchase. 
‘‘(B) TEMPLATE.—The appropriate Fed-
eral financial supervisory agencies shall, jointly, 
issue rules to establish a template that large fi-
nancial institutions shall use to collect informa-
tion required to be collected under this para-
graph. 
‘‘(3) ADDITIONAL
CONSIDERATION
OF
SMALL 
DOLLAR MORTGAGES BY SMALL AND INTERMEDIATE 
FINANCIAL INSTITUTIONS.— 
‘‘(A) IN GENERAL.—As part of assessing a 
small or intermediate financial institution under 
subsection (a), the appropriate Federal finan-
cial supervisory agency shall, at the request of 
the financial institution, provide additional con-
sideration of any mortgages extended by the fi-
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nancial institution that are small-dollar mort-
gages of $100,000 or less in value that facili-
tate a home purchase or help a borrower to re-
finance an existing mortgage. 
‘‘(B) RATING ADJUSTMENT.—If the appro-
priate Federal financial supervisory agency 
planned to assign a rating under section 
807(b)(2) to a small or intermediate financial 
institution of ‘Satisfactory record of meeting 
community credit needs’, the appropriate Fed-
eral financial supervisory agency may, after the 
additional consideration described under sub-
paragraph (A), change such rating to ‘Out-
standing record of meeting community credit 
needs’, if the appropriate Federal financial su-
pervisory agency determines such change is ap-
propriate. 
‘‘(4) DEFINITIONS.—The Board of Governors 
of the Federal Reserve System, the Comptroller of 
the Currency, and the Federal Deposit Insurance 
Corporation shall, jointly, define the terms ‘large fi-
nancial institution’ and ‘small or intermediate finan-
cial institution’ for purposes of this subsection.’’. 
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SEC. 8. STUDY ON DISCRIMINATION AND DISPARITIES IN 
ACCESS TO CREDIT. 
The Community Reinvestment Act of 1977 (12 
U.S.C. 2901 et seq.) is amended by adding at the end 
the following: 
‘‘SEC. 810. STUDY ON DISCRIMINATION AND DISPARITIES IN 
ACCESS TO CREDIT. 
‘‘(a) STUDY.—Not later than the end of the 2-year 
period beginning on the date of enactment of this section, 
and every 2 years thereafter, the appropriate Federal fi-
nancial supervisory agencies shall, jointly, and in consulta-
tion with such other Federal or State agencies as the ap-
propriate Federal financial supervisory agencies determine 
appropriate, complete an interagency statistical study to 
identify metropolitan areas and rural counties that either 
experience ongoing discrimination or exhibit significant ra-
cial disparities in access to credit for any racial or ethnic 
group. 
‘‘(b) USE OF DATA.—In carrying out each study re-
quired under subsection (a), the appropriate Federal fi-
nancial supervisory agencies shall make use of— 
‘‘(1) data obtained under the Home Mortgage 
Disclosure Act of 1975; 
‘‘(2) data obtained under section 704B of the 
Equal Credit Opportunity Act; 
‘‘(3) available State data; and 
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