I
104TH CONGRESS
1ST SESSION
H. R. 1699
To amend the Community Reinvestment Act of 1977, the Equal Credit
Opportunity Act, and the Fair Housing Act to improve the administra-
tion of such Acts, to prohibit redlining in connection with the provision
of credit, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MAY 24, 1995
Mr. MCCOLLUM introduced the following bill; which was referred to the Com-
mittee on Banking and Financial Services, and in addition to the Com-
mittee on the Judiciary, for a period to be subsequently determined by
the Speaker, in each case for consideration of such provisions as fall with-
in the jurisdiction of the committee, concerned
A BILL
To amend the Community Reinvestment Act of 1977, the
Equal Credit Opportunity Act, and the Fair Housing
Act to improve the administration of such Acts, to pro-
hibit redlining in connection with the provision of credit,
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 ‘‘Credit Opportunity
Amendments Act of 1995’’.
SEC. 2. AMENDMENTS TO THE COMMUNITY REINVESTMENT
ACT OF 1977.
(a) RECORD
OF
MEETING
COMMUNITY
NEEDS
TAKEN INTO ACCOUNT IN EXAMINATION OF MANAGE-
MENT.—Section 804(a) of the Community Reinvestment
Act of 1977 (12 U.S.C. 2903(a)) is amended—
(1) in paragraph (1), by striking ‘‘; and’’ and
inserting ‘‘to assure the accuracy of the disclosures
required by section 807.’’; and
(2) by striking paragraph (2).
(b) DISCLOSURE REQUIREMENT.—Section 807 of the
Community Reinvestment Act of 1977 (12 U.S.C. 2906)
is amended to read as follows:
‘‘SEC. 807. DISCLOSURE OF COMMUNITY REINVESTMENT
ACTIVITIES.
‘‘Each regulated financial institution shall prepare
and make available to the public at each office of such
institution where deposits are accepted a written descrip-
tion of the lending programs and other activities of the
institution which are designed to enhance the availability
of credit in the community, including low- and moderate-
income neighborhoods, served by the institution.’’.
SEC. 3. AMENDMENTS TO EQUAL CREDIT OPPORTUNITY
ACT.
(a) REDLINING PROHIBITED.—Section 701(a) of the
Consumer Credit Protection Act (15 U.S.C. 1691(a)) is
amended—
(1) in paragraph (2), by striking ‘‘or’’ at the
end;
(2) in paragraph (3), by striking the period at
the end and inserting ‘‘; or’’; and
(3) by inserting after paragraph (3), the follow-
ing new paragraph:
‘‘(4) on the basis of the racial or ethnic charac-
teristics of the neighborhood surrounding the appli-
cant’s dwelling or business.’’.
(b) AUTHORITY OF ATTORNEY GENERAL LIMITED
TO REFERRAL CASES.—Section 706(h) of the Consumer
Credit Protection Act (15 U.S.C. 1691e(h)) is amended
by striking ‘‘or whenever he has reason to believe one or
more creditors are engaged in a pattern or practice in vio-
lation of this title,’’.
(c) CLARIFICATION OF CAUSES OF ACTION.—Section
706 of the Consumer Credit Protection Act (15 U.S.C.
1691e) is amended by adding at the end the following new
subsection:
‘‘(l) DISPARATE IMPACT CASES.—No provision of
this title shall be construed as allowing statistical data
which tends to show that the credit decisions of a creditor
have had a disparate impact on various classes of credit
applicants to be used as evidence, in any action under this
section, that the creditor engaged in a pattern or practice
in violation of this title without additional evidence that—
‘‘(1) the pattern or practice actually discrimi-
nated against any person or class on a prohibited
basis; and
‘‘(2) the creditor engaged in such pattern or
practice with the purpose or intent to engage in an
activity in violation of this title.’’.
SEC. 4. AMENDMENTS TO FAIR HOUSING ACT.
(a) REDLINING PROHIBITED.—Section 805(a) of the
Fair Housing Act (42 U.S.C. 3605(a)) is amended by in-
serting ‘‘or on the basis of the racial or ethnic characteris-
tics of the neighborhood surrounding the person’s dwell-
ing’’ before the period at the end.
(b) AUTHORITY OF ATTORNEY GENERAL LIMITED
TO REFERRAL CASES.—Section 814 of the Fair Housing
Act (42 U.S.C. 3614) is amended by striking subsection
(a).
(c) CLARIFICATION OF CAUSES OF ACTION.—Section
813 of the Fair Housing Act (42 U.S.C. 3613) is amended
by adding at the end the following new subsection:
‘‘(f) DISPARATE IMPACT CASES.—No provision of
this title shall be construed as allowing statistical data
which tends to show that the business decisions of any
person have had a disparate impact on various classes of
individuals to be used as evidence, in any action or pro-
ceeding under this title, that such person engaged in a
pattern or practice in violation of this title without addi-
tional evidence that—
‘‘(1) the pattern or practice actually discrimi-
nated against any individual or class on a prohibited
basis; and
‘‘(2) such person engaged in such pattern or
practice with the purpose or intent to engage in an
activity in violation of this title.’’.
Æ