I 
111TH CONGRESS 
2D SESSION 
H. R. 6334 
To amend the Community Reinvestment Act of 1977 to improve the 
assessments of regulated financial institutions, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 29, 2010 
Mr. GUTIERREZ (for himself, Ms. WATERS, Mr. AL GREEN of Texas, and Ms. 
EDDIE BERNICE JOHNSON of Texas) 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 assessments of regulated financial institu-
tions, 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 ‘‘American Community 
Investment Reform Act of 2010’’. 
SEC. 2. COMMUNITY REINVESTMENT ACT AMENDMENTS. 
(a) FINDINGS AND PURPOSE.—Section 802 of the 
Community Reinvestment Act of 1977 (12 U.S.C. 2901) 
is amended to read as follows: 
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‘‘(C) a transaction that the appropriate 
Federal financial supervisory agency deter-
mines, by order or regulation, to be in sub-
stance a distribution of capital to the owners of 
the regulated financial institution. 
‘‘(3) COMMUNITY
DEVELOPMENT.—The term 
‘community development’ means— 
‘‘(A) affordable housing for low- (including 
extremely low-income) or moderate-income indi-
viduals (including multifamily rental housing 
and properties awarded low-income housing tax 
credits under section 42(h) of the Internal Rev-
enue Code of 1986); 
‘‘(B) community and financial services tar-
geted to low- or moderate-income individuals, 
including appropriate electronic payments, basic 
account activities, and successful mortgage or 
loan modifications; 
‘‘(C) activities that promote economic de-
velopment by financing businesses or farms 
that— 
‘‘(i) meet the size eligibility require-
ments of the Small Business Administra-
tion’s Development Company or the Small 
Business Investment Company programs 
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under section 121.301 of title 13, Code of 
Federal Regulations; or 
‘‘(ii) have gross annual revenues of 
$1,000,000 or less; or 
‘‘(D) activities that revitalize or stabilize— 
‘‘(i) low- or moderate-income geog-
raphies; 
‘‘(ii) designated disaster areas; 
‘‘(iii) distressed or underserved non-
metropolitan middle-income geographies 
designated by the Board of Governors of 
the Federal Reserve System, the Federal 
Deposit Insurance Corporation, and the 
Office of the Comptroller of the Currency, 
based on— 
‘‘(I) rates of poverty, unemploy-
ment, and population loss; or 
‘‘(II) population size, density, 
and dispersion, if such activities help 
to meet essential community needs, 
including needs of low- and moderate- 
income individuals; or; 
‘‘(iv) activities conducted by certified 
community development financial institu-
tions (as such term is defined under sec-
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tion 103(5) of the Community Develop-
ment Banking and Financial Institutions 
Act of 1994). 
‘‘(4) REGULATED FINANCIAL INSTITUTION.— 
‘‘(A) IN GENERAL.—The term ‘regulated 
financial institution’ means an insured deposi-
tory institution (as defined under section 3 of 
the Federal Deposit Insurance Act), a deposi-
tory institution holding company (as defined 
under section 3 of the Federal Deposit Insur-
ance Act), and a U.S. nonbank financial com-
pany. 
‘‘(B) RULE OF CONSTRUCTION.—The term 
‘regulated financial institution’ does not include 
a credit union. 
‘‘(5) APPLICATION FOR A DEPOSIT FACILITY.— 
The term ‘application for a deposit facility’ means 
an application to the appropriate Federal financial 
supervisory agency otherwise required under Federal 
law or regulations thereunder for— 
‘‘(A) a charter for a national bank or Fed-
eral savings and loan association; 
‘‘(B) deposit insurance in connection with 
a newly chartered State bank, savings bank, 
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savings and loan association or similar institu-
tion; 
‘‘(C) the establishment of a domestic 
branch or other facility with the ability to ac-
cept deposits of a regulated financial institu-
tion; 
‘‘(D) the relocation of the home office or a 
branch office of a regulated financial institu-
tion; 
‘‘(E) the merger or consolidation with, or 
the acquisition of the assets, or the assumption 
of the liabilities of a regulated financial institu-
tion requiring approval under section 18(c) of 
the Federal Deposit Insurance Act or under 
regulations issued under the authority of title 
IV of the National Housing Act; or 
‘‘(F) the acquisition of shares in, or the as-
sets of, a regulated financial institution requir-
ing approval under section 3 of the Bank Hold-
ing Company Act of 1956 or section 408(e) of 
the National Housing Act. 
‘‘(6) U.S. NONBANK
FINANCIAL
COMPANY.— 
The term ‘U.S. nonbank financial company’ has the 
meaning given such term under section 102 of the 
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Dodd-Frank Wall Street Reform and Consumer Pro-
tection Act. 
‘‘(7) 
GEOGRAPHY.—The 
term 
‘geography’ 
means a census tract delineated by the United 
States Bureau of the Census in the most recent de-
cennial census. 
‘‘(8) ENTIRE COMMUNITY.—With respect to a 
financial institution whose business predominately 
consists of serving the needs of military personnel 
who are not located within a defined geographic 
area, such institution may define its ‘entire commu-
nity’ to include its entire deposit customer base 
without regard to geographic proximity.’’. 
(c) EVALUATIONS.—Section 804 of such Act (12 
U.S.C. 2903) is amended— 
(1) by redesignating subsections (c) and (d) as 
subsections (e) and (f), respectively; 
(2) by striking subsections (a) and (b) and in-
serting the following new subsections: 
‘‘(a) DEPOSITORY INSTITUTIONS AND DEPOSITORY 
INSTITUTION HOLDING COMPANIES.—In connection with 
its examination of a regulated financial institution other 
than a U.S. nonbank financial company, the appropriate 
Federal financial supervisory agency shall do the fol-
lowing: 
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‘‘(1) Assess the institution’s record of meeting 
the credit or other financial needs of its entire com-
munity, including low-income, moderate-income, and 
other traditionally underserved neighborhoods, con-
sistent with the safe and sound operation of such in-
stitution. 
‘‘(2) Assess, with at least an equal weight to 
any other factor or test identified in the regulations 
prescribed by the appropriate Federal financial su-
pervisory agency to implement this Act, the commu-
nity development activities and those activities’ effec-
tiveness in meeting the financial needs of an institu-
tion’s entire community, including low- and mod-
erate-income neighborhoods, consistent with the safe 
and sound operation of such institution. 
‘‘(3) Assess the following activities and those 
activities’ effectiveness in meeting the credit or other 
financial needs of an institution’s entire community, 
including low- and moderate-income neighborhoods, 
consistent with the safe and sound operation of such 
institution, unless the appropriate Federal financial 
supervisory agency determines that such assessment 
is not appropriate for a given regulated financial in-
stitution or class of regulated financial institutions 
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because it engages in limited activities or is of a lim-
ited size: 
‘‘(A) Lending activities other than loans 
considered under paragraph (1). 
‘‘(B) Investment activities other than in-
vestments considered under paragraph (1). 
‘‘(C) Retail financial services other than 
community development services considered 
under paragraph (1). 
‘‘(4) Take such record into account in its eval-
uation of an application for a deposit facility by such 
institution. 
‘‘(b) U.S. NONBANK FINANCIAL COMPANIES.—The 
appropriate Federal financial supervisory agency shall as-
sess the community development activities, including in-
vestments and loans where appropriate that benefit the 
community of the company, and those activities’ effective-
ness in meeting the credit or other financial needs of its 
entire community, including low-income, moderate-income, 
and other traditionally underserved neighborhoods, as ap-
propriate for the given regulated financial institution con-
sistent with the safe and sound operation of such com-
pany. 
‘‘(c) REQUIREMENTS.— 
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‘‘(1) IN GENERAL.—In connection with its ex-
amination of a regulated financial institution under 
subsection (a) or (b), the appropriate Federal finan-
cial supervisory agency shall— 
‘‘(A) take into consideration public com-
ment received by the appropriate Federal finan-
cial supervisory agency regarding the institu-
tion’s record of meeting the credit or other fi-
nancial needs of its entire community, including 
low-income, moderate-income, and other tradi-
tionally underserved neighborhoods; and 
‘‘(B) require an improvement plan for an 
institution that receives a ‘Needs to improve 
record of meeting community credit or other fi-
nancial needs’ or a ‘Substantial noncompliance 
in meeting community credit or other financial 
needs’ rating on the institution’s written evalua-
tion, or such a rating in any individual assess-
ment area, and require such improvement plan 
to result in the reasonable likelihood that the 
institution will obtain a rating of at least ‘Satis-
factory record of meeting community credit or 
other financial needs’ in the relevant measure 
within 2 exam cycles. 
‘‘(2) IMPROVEMENT PLAN.— 
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‘‘(A) IN GENERAL.—A regulated financial 
institution required to submit an improvement 
plan required under paragraph (1)(B) shall 
submit such plan in writing to the appropriate 
Federal financial supervisory agency no later 
than 60 days after receiving the notice that 
such plan will be required. 
‘‘(B) PUBLIC COMMENT.—Upon receipt of 
an improvement plan required under paragraph 
(1)(B), the appropriate Federal financial super-
visory agency shall— 
‘‘(i) make the plan available to the 
public for review and comment for a period 
of no less than 30 days; and 
‘‘(ii) require the regulated financial 
institution to revise, as appropriate, the 
improvement plan in response to the public 
comments received under the public review 
and comment period described under 
clause (i) and submit such plan to the ap-
propriate Federal financial supervisory 
agency no later than 30 days after the end 
of such period. 
‘‘(3) LIMITATION.—Public comment received 
pursuant to paragraph (2)(B) shall be limited to 
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comments that directly address the regulated finan-
cial institution’s record of meeting the credit or 
other financial needs of the entire community, in-
cluding low-income, moderate-income, and other tra-
ditionally underserved neighborhoods. 
‘‘(d) NONMINORITY OWNED AND NON-CDFI INSTI-
TUTION INVESTMENTS.—In assessing and taking into ac-
count, under subsections (a), (b), and (c), the record of 
a regulated financial institution that is a nonminority- 
owned, nonwomen-owned institution and that is not a cer-
tified community development financial institution, the ap-
propriate Federal financial supervisory agency may con-
sider as a factor capital investment, loan participation, 
and other ventures undertaken by the regulated financial 
institution in cooperation with certified community devel-
opment financial institutions, minority- and women-owned 
financial institutions, and low-income credit unions, pro-
vided that these activities help meet the credit or other 
financial needs of local communities in which such institu-
tions and credit unions operate, including communities 
other than where such institutions and credit unions oper-
ate, if the regulated financial institution has adequately 
met the needs of its local assessment area.’’; 
(3) by adding at the end the following new sub-
sections: 
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‘‘(g) COMPLEX AND INNOVATIVE EFFORTS.—In as-
sessing and taking into account, under subsection (a), the 
record of a regulated financial institution, the appropriate 
Federal financial supervisory agency shall consider, as a 
factor, the complexity, innovativeness, effectiveness in 
meeting particularly difficult community needs, or signifi-
cant effort extended in specific loans, investments, or serv-
ices. 
‘‘(h) RULE OF CONSTRUCTION.—An evaluation of a 
depository institution holding company shall incorporate 
evaluations of subsidiary regulated financial institutions 
made by each subsidiary’s appropriate Federal financial 
supervisory agency, if applicable.’’. 
(d) WRITTEN EVALUATIONS.—Section 807 of such 
Act (12 U.S.C. 2906) is amended— 
(1) in subsection (a)— 
(A) by striking ‘‘an insured depository in-
stitution’’ and inserting ‘‘a regulated financial 
institution’’; and 
(B) by inserting ‘‘or financial’’ after ‘‘cred-
it’’; 
(2) in subsection (b)— 
(A) in paragraph (1)— 
(i) in subparagraph (A)— 
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(I) in clause (ii), by striking 
‘‘and’’ at the end; 
(II) by redesignating clause (iii) 
as clause (v); and 
(III) by inserting after clause (ii) 
the following new clauses: 
‘‘(iii) disclose whether the institution 
provided, or offered to provide, a consumer 
financial product that the Bureau of Con-
sumer Financial Protection has determined 
is unfair, deceptive, or abusive; 
‘‘(iv) include specific responses to 
public comments received by the Federal 
financial supervisory agency regarding the 
institution; and’’; and 
(ii) by adding at the end the following 
new subparagraph: 
‘‘(C) TREATMENT WITH RESPECT TO UN-
FAIR, DECEPTIVE, OR ABUSIVE CONSUMER FI-
NANCIAL PRODUCTS.—If the regulated financial 
institution provided, or offered to provide, one 
or more consumer financial products that the 
Bureau of Consumer Financial Protection has 
determined is unfair, deceptive, or abusive, the 
written evaluation shall be negatively influenced 
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not bar the company from being granted a 
rating of ‘Outstanding record of meeting 
community credit or other financial needs’. 
‘‘(C) EXPANDED ASSESSMENT AREA.—For 
purposes of determining whether to award a 
rating described under subparagraph (A), the 
appropriate Federal financial supervisory agen-
cy may consider community development activi-
ties, including investments made outside the in-
stitution’s service area if the regulated financial 
institution has adequately met the needs of its 
local assessment area.’’; 
(3) by redesignating subsections (d) and (e) as 
subsections (f) and (g), respectively; and 
(4) by inserting after subsection (c) the fol-
lowing new subsections: 
‘‘(d) PRELIMINARY REPORT REQUIRED.— 
‘‘(1) IN GENERAL.—The appropriate Federal fi-
nancial supervisory agency shall— 
‘‘(A) prepare a preliminary report of the 
public section of the evaluation required under 
paragraph (a)(1); and 
‘‘(B) provide the preliminary report to the 
regulated financial institution and to the public 
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not less than 60 days before the date on which 
the corresponding written evaluation is issued. 
‘‘(2) LIMITATION.—The preliminary report re-
quired under paragraph (1) shall not include any as-
signed rating or discussion of an assigned rating. 
‘‘(e) PUBLIC COMMENT ON PRELIMINARY REPORT.— 
The appropriate Federal financial supervisory agency 
shall— 
‘‘(1) develop and implement a process to seek 
and receive public comment on any preliminary re-
port for a period of 30 days following the release of 
the report; and 
‘‘(2) incorporate into a revised written evalua-
tion any public comment received during such com-
ment period, as appropriate.’’. 
(e) EFFECTS OF ASSIGNED RATINGS.—Such Act is 
amended by adding at the end the following new section: 
‘‘SEC. 810. EFFECTS OF ASSIGNED RATINGS. 
‘‘(a) OUTSTANDING RATING.—A regulated financial 
institution that receives a rating of ‘outstanding record of 
meeting community credit or other financial needs’ on its 
most recent performance evaluation shall— 
‘‘(1) be presumed to have satisfied consider-
ation of such regulated financial institution’s record 
of meeting the credit or other financial needs of its 
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entire community in an application for a deposit fa-
cility; and 
‘‘(2) be given preference over other regulated fi-
nancial institutions with lower ratings in connection 
with the award of Government contracts. 
‘‘(b) SATISFACTORY RATING.—There shall be a re-
buttable presumption that a regulated financial institution 
that receives a rating of ‘satisfactory record of meeting 
community credit or other financial needs’ on its two most 
recent performance evaluations will have satisfied consid-
eration of such regulated financial institution’s record of 
meeting the credit or other financial needs of its entire 
community in an application for a deposit facility. 
‘‘(c) NEEDS TO IMPROVE RATING.—A regulated fi-
nancial institution that receives a rating of ‘needs to im-
prove record of meeting community credit or other finan-
cial needs’ or lower on its two most recent performance 
evaluations shall be prohibited from— 
‘‘(1) being awarded a Government contract in 
an amount greater than $500,000, unless such Fed-
eral department or agency proposing to enter into 
such contract determines that compliance with such 
prohibition imposes an undue burden or is unable to 
meet its needs with another institution; and 
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‘‘(2) making any capital distributions in the ag-
gregate during any calendar quarter that exceed 50 
percent of its net earnings during the previous quar-
ter without the prior approval of its appropriate 
Federal financial supervisory agency. 
‘‘(d) SUBSTANTIAL NONCOMPLIANCE.—A regulated 
financial institution that receives a ‘substantial noncompli-
ance in meeting community credit or other financial needs’ 
rating on its most recent performance evaluations— 
‘‘(1) may be ordered to restrict executive com-
pensation by its appropriate Federal financial super-
visory agency; 
‘‘(2) shall be prohibited from being awarded a 
Government contract, unless such Federal depart-
ment or agency proposing to enter into such con-
tract determines that compliance with such prohibi-
tion imposes an undue burden or is unable to meet 
its needs with another institution; and 
‘‘(3) shall be prohibited from making any cap-
ital distributions without the prior approval of its 
appropriate Federal financial supervisory agency.’’. 
Æ 
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