TITLE I—COMMUNITY CREDIT
AVAILABILITY IMPROVEMENTS
SEC. 101. REPORTING OF ACTUAL PERFORMANCE DATA.
(a) IN GENERAL.—The Community Reinvestment
Act of 1977 (12 U.S.C. 2901 et seq.) is amended by add-
ing at the end the following new section:
‘‘SEC. 809. REPORTING OF ACTUAL PERFORMANCE DATA.
‘‘(a) ESTABLISHMENT REQUIRED.—The appropriate
Federal financial supervisory agencies shall jointly develop
a format for collecting data from regulated financial insti-
tutions, in connection with examinations under section
804 concerning such institutions’ record of meeting the
credit needs of their local communities, including low- and
moderate-income neighborhoods.
‘‘(b) DATA REQUIRED.—The data required to be col-
lected under subsection (a) shall include the following:
‘‘(1) HOME MORTGAGE LENDING.—
‘‘(A) The aggregate number and dollar vol-
ume of single family conventional loans, govern-
ment insured or guaranteed loans, loans for
multi-family housing, and home improvement
loans originated by the institution and the ag-
gregate number of such loans initiated in neigh-
borhoods of different racial and income com-
positions.
‘‘(B) The rate at which the institution re-
jects applications of various racial and income
groups and a comparison of such rate with the
rate of other institutions in the financial insti-
tution’s entire community.
‘‘(C) The percentage of applications the fi-
nancial institution receives from minority and
low- and moderate-income persons in the insti-
tution’s entire community, expressed as a per-
centage of the institution’s overall applications,
and a comparison of such percentage with the
percentage of other institutions in the financial
institution’s entire community.
‘‘(D) An analysis of the financial institu-
tion’s overall market share in the institution’s
entire community for each loan type and the in-
stitution’s market share in neighborhoods of
various income and racial compositions.
‘‘(E) The nature and extent of the institu-
tion’s participation in affordable housing pro-
grams that benefit the institution’s entire com-
munity.
‘‘(2) SMALL BUSINESS LENDING.—
‘‘(A) The aggregate number and dollar vol-
ume of loans originated, with a separate break-
‘‘(D) contain the data required to be col-
lected with respect to the institution pursuant
to section 809.’’.
SEC. 102. ENHANCED OPPORTUNITIES FOR COMMUNITY
INPUT.
Section 807 of the Community Reinvestment Act of
1977 (12 U.S.C. 2906) is amended by adding at the end
the following new subsection:
‘‘(d) VIEWS OF CONSUMERS.—
‘‘(1) IN GENERAL.—The appropriate Federal fi-
nancial supervisory agency shall actively solicit com-
ments, in writing and in person, for no fewer than
45 days prior to the issuance of a rating under sub-
section (b).
‘‘(2) SPECIAL
EMPHASIS.—In soliciting com-
ments under paragraph (1), the appropriate Federal
financial supervisory agency shall emphasize con-
tacts with low- and moderate-income and minority
residents of affected communities within the institu-
tion’s entire community, community groups rep-
resenting such residents, small businesses, and non-
profit organizations providing services in low- and
moderate-income communities.
‘‘(3) INTERVIEWS WITH APPLICANTS FOR CRED-
IT.—Any examiner conducting an examination under
section 804 may interview any applicant for credit to
the regulated financial institution in order to deter-
mine whether there is evidence of any practice which
might tend to discourage an applicant from pursuing
an application for credit, including the discourage-
ment of an application on a prohibited basis.
‘‘(4) EXTENSION OF COMMENT PERIOD.—If a
substantial number of requests are received by an
appropriate Federal financial supervisory agency for
public comment under paragraph (1), the agency
shall—
‘‘(A) extend the comment period no fewer
than 75 days; and
‘‘(B) hold a public hearing.’’.
SEC. 103. COLLECTION OF DATA ON SMALL BUSINESS AND
CONSUMER LOANS.
Section 304(a)(1) of the Home Mortgage Disclosure
Act of 1975 (12 U.S.C. 2803(a)(1)) is amended by insert-
ing ‘‘, the number and total dollar amount of loans to
small business, by census tracts, and the number and total
dollar amount of personal loans to consumers, by census
tracts’’ before the period at the end.
SEC. 104. RATING SYSTEM UNDER CRA.
(a) 5 POINT RATING SYSTEM.—Section 807(b)(2) of
the Community Reinvestment Act of 1977 (12 U.S.C.
2906(b)(2)) is amended—
(1) by redesignating subparagraphs (C) and
(D) as subparagraphs (D) and (E), respectively, and
by inserting after subparagraph (B) the following
new subparagraph:
‘‘(C) ‘Qualified record of meeting commu-
nity credit needs which needs to improve’.’’; and
(2) in subparagraph (D) (as so redesignated by
paragraph (1) of this subsection), is amended by
striking ‘‘Needs’’ and inserting ‘‘Substantial and im-
mediate need’’.
(b) RATING INTEGRITY.—Section 807(b) of the Com-
munity Reinvestment Act of 1977 (12 U.S.C. 2906(b)) is
amended by adding at the end the following new
paragraph:
‘‘(3) RATING INTEGRITY.—No financial institu-
tion may receive a rating described in subparagraph
(A) or (B) of paragraph (2) unless such institution
has actually extended significant amounts of credit
in low-income neighborhoods and has not merely
been in compliance with a plan for extending such
credit in the future.’’.
(c) PROMPT CORRECTIVE ACTION.—The Community
Reinvestment Act of 1977 (12 U.S.C. 2901 et seq.) is
amended by adding after section 809 (as added by section
101 of this Act) the following new section:
‘‘SEC. 810. PROMPT CORRECTIVE ACTION.
‘‘(a) ACTION REQUIRED.—
‘‘(1) QUALIFIED RECORD OF MEETING COMMU-
NITY CREDIT NEEDS WHICH NEEDS TO IMPROVE.—
‘‘(A) SUBMISSION
OF
PLAN.—Any regu-
lated financial institution which receives a rat-
ing of ‘qualified record of meeting community
credit needs which needs to improve’ shall sub-
mit, to the appropriate Federal financial super-
visory agency, a plan for improving the institu-
tion’s performance with respect to meeting the
credit needs of the institution’s entire commu-
nity, including low- and moderate-income neigh-
borhoods, by the end of the 6-month period be-
ginning on the date the institution receives such
rating under this Act.
‘‘(B) REDUCTION OF RATING FOR FAILURE
TO COMPLY.—If a regulated financial institu-
tion described in subparagraph (A) fails to sub-
mit a plan under such subparagraph which is
acceptable to the appropriate Federal super-
visory agency before the end of the lll-
month period beginning on the date the rating
referred to in such subparagraph is received by
the institution, the institution’s rating under
section 807(a)(2) as of the end of such period
shall be deemed to be ‘substantial and imme-
diate need to improve record of meeting com-
munity credit needs’ for purposes of this Act,
including paragraph (2).
‘‘(2) SUBSTANTIAL AND IMMEDIATE NEED TO
IMPROVE RECORD OF MEETING COMMUNITY CREDIT
NEEDS.—
‘‘(A) SUBMISSION
OF
PLAN.—Any regu-
lated financial institution which receives a rat-
ing of ‘substantial and immediate need to im-
prove record of meeting community credit
needs’ shall submit, to the appropriate Federal
financial supervisory agency before the end of
the 30-day period beginning on the date the in-
stitution receives such rating under this Act, a
plan for substantially improving the institu-
tion’s performance with respect to meeting the
credit needs of the institution’s entire commu-
nity, including low- and moderate-income neigh-
borhoods, by the end of the 6-month period be-
ginning on such date.
‘‘(B) PUBLIC HEARING.—
‘‘(i) IN
GENERAL.—The appropriate
Federal financial supervisory agency shall
hold a public hearing on the adequacy of
any plan submitted pursuant to subpara-
graph (A) before the end of the 30-day pe-
riod beginning on the date the plan is sub-
mitted to the agency.
‘‘(ii) NOTICE OF HEARING.—The ap-
propriate Federal financial supervisory
agency shall provide adequate notice in the
regulated financial institution’s entire com-
munity, including low- and moderate-in-
come neighborhoods, of any hearing con-
ducted under clause (i).
‘‘(C) REDUCTION OF RATING FOR FAILURE
TO COMPLY.—If a regulated financial institu-
tion described in subparagraph (A) fails to sub-
mit a plan under such subparagraph which is
acceptable to the appropriate Federal super-
visory agency before the end of the lll-
month period beginning on the date the rating
referred to in such subparagraph is received by
the institution, the institution’s rating under
section 807(a)(2) as of the end of such period
shall be deemed to be ‘substantial noncompli-
ance in meeting community credit needs’ for
purposes of this Act, including paragraph (3).
‘‘(3) SUBSTANTIAL NONCOMPLIANCE IN MEET-
ING COMMUNITY CREDIT NEEDS.—
‘‘(A) PROMPT
CORRECTIVE
ACTION
RE-
QUIRED.—If a regulated financial institution re-
ceives a rating of ‘substantial noncompliance in
meeting community credit needs’, the appro-
priate Federal supervisory agency shall—
‘‘(i) treat such rating as a violation of
the requirements of this Act; and
‘‘(ii) promptly take such corrective ac-
tion as may be necessary to ensure that
such institution meets the credit needs of
the institution’s entire community, includ-
ing low- and moderate-income neighbor-
hoods, as soon as practicable.
‘‘(B) MONTHLY LOAN ACTIVITY REPORTS
REQUIRED.—Any regulated financial institution
which receives a rating of ‘substantial non-
compliance in meeting community credit needs’
shall submit a monthly report to the appro-
priate Federal supervisory agency on the ac-
tions the institution has taken during the pe-
riod covered by the report to meet the credit
needs of the low- and moderate-income neigh-
borhoods in the institution’s community.
‘‘(C) ADDITIONAL SUPERVISION.—The ap-
propriate Federal supervisory agency shall pro-
vide such additional supervision of an institu-
tion described in subparagraph (A) as may be
necessary, including conducting special exami-
nations, to ensure that such institution is—
‘‘(i) in compliance with all plans ap-
proved by the agency for substantially im-
proving the institution’s performance with
respect to meeting the credit needs of the
institution’s entire community, including
low- and moderate-income neighborhoods;
and
‘‘(ii) making all possible progress to-
wards meeting such credit needs.
‘‘(b) ADMINISTRATIVE ENFORCEMENT.—
‘‘(1) IN
GENERAL.—Compliance with the re-
quirements imposed under this Act shall be enforced
under section 8 of the Federal Deposit Insurance
Act by the appropriate Federal financial supervisory
agency.
‘‘(2) ADDITIONAL ENFORCEMENT POWERS.—
‘‘(A) VIOLATION OF THIS ACT TREATED AS
VIOLATION OF OTHER ACT.—For purposes of
the exercise by any appropriate Federal finan-
cial supervisory agency of the agency’s powers
under the Federal Deposit Insurance Act, a vio-
lation of a requirement imposed under this Act
shall be deemed to be a violation of a require-
ment imposed under that Act.
‘‘(B) ENFORCEMENT
AUTHORITY
UNDER
OTHER ACTS.—In addition to the powers of any
appropriate Federal financial supervisory under
the Federal Deposit Insurance Act, each such
agency may exercise, for purposes of enforcing
compliance with any requirement imposed
under this Act, any other authority conferred
on such agency by law.’’.
TITLE II—COMMUNITY SUPPORT
REQUIREMENTS
SEC. 201. COMMUNITY SUPPORT OBLIGATIONS OF MORT-
GAGE BANKS.
(a) IN GENERAL.—Each mortgage bank shall have
an ongoing responsibility to meet the credit needs of all
the communities in which such 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) DEFINITIONS.—For purposes of this title—
(1) MORTGAGE BANK.—The term ‘‘mortgage
bank’’ means any lender who does not accept depos-
its and originates housing related loans.
(2) OFFICE.—The term ‘‘Office’’ means the Of-
fice of Mortgage Bank and Insurance Supervision
established by the Secretary of Housing and Urban
Development pursuant to section 202.
(3) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Housing and Urban Development.
SEC. 202. ESTABLISHMENT OF OFFICE OF MORTGAGE BANK
AND INSURANCE SUPERVISION.
The Secretary of Housing and Urban Development
shall establish within the Department of Housing and
Urban Development an office to be known as the Office
of Mortgage Bank and Insurance Supervision to evaluate
the community support performance of mortgage banks
and mortgage insurance companies.
SEC. 203. 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 gov-
ernment;
(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 re-
quire.
SEC. 204. MORTGAGE BANK COMMUNITY SUPPORT EVAL-
UATION.
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. 205. PENALTIES FOR FINDING OF INADEQUATE COM-
MUNITY 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
the District of Columbia, for an injunction setting
aside, limiting, or suspending the enforcement, oper-
ation, or effectiveness of such order pending the
completion of the administrative proceedings pursu-
ant to the notice of charges served upon the bank,
and such court shall have jurisdiction to issue such
injunction.
(4) JUDICIAL
ENFORCEMENT.—The Secretary
may apply to the United States district court, or the
United States court of any territory, within the ju-
risdiction of which the home office of the mortgagee
is located, for an injunction to enforce any effective
and outstanding order issued under this subsection
and, if the court determines that there has been a
violation or threatened violation of such order, the
court shall issue such injunction.
(c) CIVIL MONEY PENALTY.—
(1) IMPOSITION OF PENALTY.—
(A) IN GENERAL.—The Secretary may im-
pose a civil money penalty on any mortgage
bank, and any director, officer or employee of
a mortgage bank, who violates any order issued
under subsection (a) or (b).
(B) AMOUNT OF PENALTY.—The amount
of the penalty, as determined by the Secretary,
may not exceed—
(i) in the case of a violation of an
order issued under subsection (a), $10,000
for each month during which such violation
occurs; and
(ii) in the case of a violation of an
order issued under subsection (b), $10,000
for each day during which such violation
continues.
(C) NOTIFICATION
TO
ATTORNEY
GEN-
ERAL.—Before taking action to impose a civil
money penalty for a violation under subpara-
graph (A), the Secretary shall inform the Attor-
ney General of the United States.
(2) ASSESSMENT.—
(A) WRITTEN NOTICE.—Any penalty im-
posed under paragraph (1) may be assessed and
collected by the Secretary by written notice.
(B) FINALITY OF ASSESSMENT.—If, with
respect to any assessment under subparagraph
(A), a hearing is not requested pursuant to
paragraph (5) within the period of time allowed
under such paragraph, the assessment shall
constitute a final and unappealable order.
(3) AUTHORITY
TO
MODIFY
OR
REMIT
PEN-
ALTY.—The Secretary may compromise, modify, or
remit any penalty which the Secretary may assess or
already has assessed under paragraph (1).
(4) MITIGATING FACTORS.—In determining the
amount of a penalty under paragraph (1) with re-
spect to any person, the Secretary shall take into ac-
count the appropriateness of the penalty with re-
spect to—
(A) the gravity of the offense;
(B) any history of previous violations by
the person;
(C) the ability of the person to pay the
penalty;
(D) injury to the public;
(E) benefits received by the person as a re-
sult of the violation;
(F) the deterrent effect of the penalty on
future violations by such person and other per-
sons; and
(G) such other factors as the Secretary
may determine in regulations to be appropriate.
(5) HEARING.—The person against whom a
civil money penalty is assessed under paragraph (1)
shall be afforded an opportunity for a hearing on the
record, if such person submits a request for such
hearing within 20 days after the issuance of the no-
tice of the assessment.
(6) COLLECTION.—
(A) REFERRAL.—If any person fails to pay
an assessment after any penalty assessed under
this subsection has become final, the Secretary
shall notify the Attorney General who shall re-
cover the amount assessed in the appropriate
United States district court.
(B) APPROPRIATENESS OF PENALTY NOT
REVIEWABLE.—In any civil action under sub-
paragraph (A), the validity and appropriateness
of the penalty shall not be subject to review.
(7) DISBURSEMENT.—All penalties collected
pursuant to this subsection shall be deposited into
the Treasury of the United States.
(8) 
AGENCY
PROCEDURES—The 
Secretary
shall, by regulation, establish standards and proce-
dures for carrying out this subsection.
SEC. 206. COMMUNITY SUPPORT REQUIREMENTS FOR
MORTGAGE INSURANCE COMPANIES.
(a) IN GENERAL.—Each mortgage insurance com-
pany shall—
(1) report to the Office the number and total
dollar amount of each mortgage insurance policy
written by the company, by census tract, the race,
gender, and income of applicants for mortgage in-
surance, and the disposition of each application for
mortgage insurance;
(2) demonstrate to the Secretary adequate sup-
port for community credit needs; and
(3) make public to any person the underwriting
criteria for any mortgage insurance the company of-
fers.
(b) 2-YEAR REPORTING REQUIREMENT.—At least
once during each 2-year period beginning after the date
of enactment of this Act, each mortgage insurance com-
pany shall submit a report to the Office containing the
following information:
(1) ADEQUACY OF AVAILABILITY OF MORTGAGE
INSURANCE.—The extent to which adequate mort-
gage insurance is available in low- and moderate-in-
come and minority neighborhoods within areas in
which the company writes a significant number of
mortgage insurance policies.
(2) UNDERWRITING GUIDELINES.—The extent
to which underwriting guidelines used by the com-
pany do not unreasonably restrict access to low- and
moderate-income families within areas in which the
company writes a significant number of mortgage in-
surance policies.
(c) DUTIES OF THE OFFICE.—The Office shall con-
duct biennial community support reviews of mortgage in-
surance companies including analysis of the following:
(1) The data collected by the Agency on the
distribution of the mortgage insurance company’s
policies by census tract and data on the disparate
treatment of applicants for mortgage insurance
based on the applicants’ race, gender, and income.
(2) The underwriting criteria employed by the
company and the extent to which such criteria do
not unreasonably restrict access to credit for low-
and moderate-income and minority persons or neigh-
borhoods.
(3) Community support statements received
from the mortgage insurance company.
(4) Any other information the Secretary may
require mortgage insurance companies to submit.
(5) Any comments received from the public on
the community support performance of the mortgage
insurance company during the period covered by the
review under this paragraph.
(d) DUTIES
OF
THE SECRETARY.—The Secretary
shall—
(1) solicit and accept public comment for no
fewer than 90 days before issuing a finding in con-
nection with the review of a mortgage insurance
company under subsection (c)(2); and
(2) review the community support performance
of each mortgage insurance company and determine
whether the company is providing an adequate level
of community support in the areas in which such
company writes a significant number of mortgage in-
surance policies.
(e) PERFORMANCE STATEMENT.—If, after reviewing
any evidence, the Secretary concludes that a mortgage in-
surance company is not meeting the requirements of this
section, the Secretary may require such company to sub-
mit a statement indicating how the company expects to
improve its record of providing community support.
TITLE III—PATTERN OR
PRACTICE
SEC. 301. PATTERN OR PRACTICE TAKEN INTO ACCOUNT IN
CONNECTION WITH DEPOSIT FACILITY AP-
PLICATIONS.
Section 804 of the Community Investment Act of
1977 (12 U.S.C. 2903) is amended—
(1) by striking ‘‘In connection with’’ and insert-
ing ‘‘(a) IN GENERAL.—In connection with’’; and
(2) by adding at the end the following new sub-
section:
‘‘(b) PATTERN OR PRACTICE.—In considering an ap-
plication for a deposit facility by a regulated financial in-
stitution, the appropriate Federal financial supervisory
agency shall—
‘‘(1) consider whether the institution has, dur-
ing the 10 years prior to the filing of the applica-
tion, exhibited a pattern or practice of opening or
closing branches in a way that tends to exclude low-
or moderate-income or minority neighborhoods; and
‘‘(2) accept public comment for no fewer than
90 days before making any determination as to
whether the affected institution has provided afford-
able and accessible deposit and branch banking serv-
ices to low- and moderate-income and minority con-
sumers within the institution’s entire community.
‘‘(c) DENIAL OF APPLICATION.—If the appropriate
Federal financial supervisory agency determines, under
subsection (b)(1), that a regulated financial institution
has exhibited a pattern or practice of opening or closing
branches in a way that tends to exclude low- and mod-
erate-income or minority communities, the agency shall
deny the pending application, notwithstanding the institu-
tion’s compliance with any other applicable provision of
law.’’.
SEC. 302. PATTERN OR PRACTICE TAKEN INTO ACCOUNT IN
CONNECTION WITH CERTAIN BANK HOLDING
COMPANY APPLICATIONS.
The Bank Holding Company Act of 1956 (12 U.S.C.
1841, et seq.) is amended—
(1) by redesignating sections 11 and 12 as sec-
tions 12 and 13, respectively; and
(2) by inserting after section 10 the following
new section:
‘‘SEC. 11. PATTERN OR PRACTICE OF CLOSING DEPOSIT FA-
CILITIES.
‘‘(a) IN GENERAL.—In considering an application
which is subject to this section, the Board shall—
‘‘(1) consider whether the applicant or any
bank or savings association affiliate of the applicant,
during the 10 years prior to the filing of the applica-
tion, exhibited a pattern or practice of opening or
closing branches in a way that tends to exclude low-
or moderate-income or minority neighborhoods; and
‘‘(2) accept public comment for no fewer than
90 days before making any determination as to
whether the applicant and any bank or savings asso-
ciation affiliate of the applicant has provided afford-
able and accessible deposit and branch banking serv-
ices to low- and moderate-income and minority con-
sumers within the applicant’s or the affiliate’s entire
community.
‘‘(b) APPLICATIONS SUBJECT TO THIS SECTION.—
The following applications shall be subject to this section:
‘‘(1) Any application under section 3(a) by—
‘‘(A) any bank holding company to acquire
control of another bank or bank holding com-
pany; or
‘‘(B) any bank to acquire control of an-
other bank or any bank holding company.
‘‘(2) Any application by a bank holding com-
pany to engage in, or any notice by a bank holding
company of such company’s intention to engage in,
(as the case may be) any activity (or to acquire the
shares of any company engaged in any activity) de-
scribed in any paragraph of section 4(c).
‘‘(c) DENIAL OF APPLICATION.—The Board may not
approve an application which is subject to this section
(and, in the case of a notice of an acquisition or activity,
for which the Board’s approval is not required, the Board
shall disapprove the acquisition or activity) if the Board
determines that the applicant or any bank or savings asso-
ciation affiliate of the applicant has exhibited a pattern
or practice of opening or closing branches in a way that
tends to exclude low- and moderate-income or minority
communities.’’.
SEC. 303. PATTERN OR PRACTICE TAKEN INTO ACCOUNT IN
CONNECTION WITH CERTAIN SAVINGS AND
LOAN HOLDING COMPANY APPLICATIONS.
Section 10 of the Home Owners’ Loan Act (12 U.S.C.
1467a) is amended by adding at the end the following new
subsection:
‘‘(t) PATTERN OR PRACTICE OF CLOSING DEPOSIT
FACILITIES.
‘‘(1) IN GENERAL.—In considering an applica-
tion which is subject to this subsection, the Director
shall—
‘‘(A) consider whether the applicant or any
bank or savings association affiliate of the ap-
plicant, during the 10 years prior to the filing
of the application, exhibited a pattern or prac-
tice of opening or closing branches in a way
that tends to exclude low- or moderate-income
or minority neighborhoods; and
‘‘(B) accept public comment for no fewer
than 90 days before making any determination
as to whether the applicant and any bank or
savings association affiliate of the applicant has
provided affordable and accessible deposit and
branch banking services to low- and moderate-
income and minority consumers within the ap-
plicant’s or the affiliate’s entire community.
‘‘(2) APPLICATIONS
SUBJECT
TO
THIS
SEC-
TION.—The following applications shall be subject to
this subsection:
‘‘(A) Any application under subsection (e)
by—
‘‘(i) any savings and loan holding
company to acquire control of another sav-
ings association or savings and loan hold-
ing company; or
‘‘(ii) any savings association to ac-
quire control of another savings association
or any savings and loan holding company.
‘‘(B) Any application by a savings and loan
holding company to engage in any activity (or
to acquire the shares of any company engaged
in any activity) for which the Director’s ap-
proval is required under subsection (c)(4)(A).
‘‘(3) DENIAL OF APPLICATION.—The Director
may not approve an application which is subject to
this subsection (and, in the case of a notice of an
acquisition or activity for which the Director’s ap-
proval is not required, the Director shall disapprove
the acquisition or activity) if the Director determines
that the applicant or any bank or savings association
affiliate of the applicant has exhibited a pattern or
practice of opening or closing branches in a way that
tends to exclude low- and moderate-income or minor-
ity communities.’’.
SEC. 304. PATTERN OR PRACTICE TAKEN INTO ACCOUNT IN
CONNECTION WITH CERTAIN APPLICATIONS
FOR MERGERS AND ACQUISITIONS OF DE-
POSITORY INSTITUTIONS.
Section 18(c) of the Federal Deposit Insurance Act
(12 U.S.C. 1828(c)) is amended—
(1) by redesignating paragraphs (9), (10), and
(11) as paragraphs (10), (11), and (12), respec-
tively; and
(2) by inserting after paragraph (8) the follow-
ing new paragraph:
‘‘(9) PATTERN OR PRACTICE OF CLOSING DE-
POSIT FACILITIES.
‘‘(A) IN GENERAL.—In considering an ap-
plication under paragraph (1) or (2), the re-
sponsible agency shall—
‘‘(i) consider whether the applicant
during the 10 years prior to the filing of
the application, exhibited a pattern or
practice of opening or closing branches in
a way that tends to exclude low- or mod-
erate-income or minority neighborhoods;
and
‘‘(ii) accept public comment for no
fewer than 90 days before making any de-
termination as to whether the applicant
has provided affordable and accessible de-
posit and branch banking services to low-
and moderate-income and minority con-
sumers within the applicant’s entire com-
munity.
‘‘(B) DENIAL OF APPLICATION.—The re-
sponsible agency may not approve an applica-
tion under paragraph (1) or (2) if the agency
determines that the applicant depository insti-
tution has exhibited a pattern or practice of
opening or closing branches in a way that tends
to exclude low- and moderate-income or minor-
ity communities.’’.
Æ
HR 1700 SC——2
HR 1700 SC——3