I 
110TH CONGRESS 
1ST SESSION H. R. 1289 
To enhance the availability of capital and credit for all citizens and commu-
nities, to ensure that community reinvestment keeps pace as banks, 
securities firms, and other financial service providers become affiliates 
as a result of the enactment of the Gramm-Leach-Bliley Act, and for 
other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 1, 2007 
Ms. EDDIE BERNICE JOHNSON of Texas (for herself, Mr. GUTIERREZ, Ms. 
SCHAKOWSKY, Mr. CARNAHAN, Mr. CONYERS, Mr. FATTAH, Mr. BRADY 
of Pennsylvania, Mrs. JONES of Ohio, Ms. CORRINE BROWN of Florida, 
and Mr. ELLISON) introduced the following bill; which was referred to the 
Committee on Financial Services 
A BILL 
To enhance the availability of capital and credit for all citi-
zens and communities, to ensure that community rein-
vestment keeps pace as banks, securities firms, and other 
financial service providers become affiliates as a result 
of the enactment of the Gramm-Leach-Bliley 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, 
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SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Community Reinvestment Modernization Act of 2007’’. 
(b) TABLE OF CONTENTS.—The table of contents of 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
Sec. 2. Findings. 
Sec. 3. Purposes. 
TITLE I—MODERNIZATION OF COMMUNITY REINVESTMENT ACT 
OF 1977 AND COMMUNITY SERVICE OBLIGATIONS 
Sec. 101. Repeal of recent regulatory changes to the application of the Commu-
nity Reinvestment Act of 1977 and restoration of comprehen-
sive examinations. 
Sec. 102. Extension of community reinvestment obligations within a financial 
holding company. 
Sec. 103. Provisions relating to improved responsiveness of insured depository 
institutions to Community Reinvestment Act of 1977. 
Sec. 104. Reduction of CRA rating due to predatory lending and other negative 
credit practices. 
Sec. 105. Responsiveness to community needs for securities and investment 
services. 
Sec. 106. Responsiveness to community needs for mortgages and mortgage re-
lated services by mortgage banks. 
Sec. 107. Responsiveness to community needs for insurance services. 
Sec. 108. Satisfactory ratings required by securities company, mortgage bank, 
and insurance company affiliates of financial holding compa-
nies. 
TITLE II—DATA DISCLOSURE REQUIREMENTS 
Subtitle A—Disclosure of Insurance Availability and Insurer Investment 
Information 
Sec. 201. Short title. 
Sec. 202. Establishment of general requirements to submit information. 
Sec. 203. Reporting of noncommercial insurance information. 
Sec. 204. Reporting of rural insurance information. 
Sec. 205. Waiver of reporting requirements. 
Sec. 206. Reporting by private mortgage insurers. 
Sec. 207. Reporting of information regarding investments by insurers. 
Sec. 208. Submission of information to Secretary and maintenance of informa-
tion. 
Sec. 209. Availability and access system. 
Sec. 210. Designations. 
Sec. 211. Enforcement. 
Sec. 212. Exemption and relation to State laws. 
Sec. 213. Regulations. 
Sec. 214. Definitions. 
Sec. 215. Effective date. 
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Subtitle B—Improvements in Other Data Disclosure Requirements 
Sec. 221. Maintenance and disclosure of information by the Financial Institu-
tions Examination Counsel. 
TITLE III—REGULATORY AND STRUCTURAL REFORMS 
Sec. 301. Antiredlining requirement for financial holding companies. 
Sec. 302. Notice and public comment required before establishing a financial 
holding company. 
Sec. 303. Public meetings for bank acquisitions and mergers. 
Sec. 304. Branch closure requirements. 
Sec. 305. CRA examination schedule for small banks. 
Sec. 306. CRA sunshine requirements. 
Sec. 307. Continuing community reinvestment requirement for financial holding 
companies. 
Sec. 308. Changes in reporting requirements under the Home Mortgage Disclo-
sure Act of 1975. 
SEC. 2. FINDINGS. 
The Congress finds as follows: 
(1) It is necessary to increase homeownership 
and small business ownership for low- and moderate- 
income borrowers and persons of color. It also is 
necessary to close the wealth gap in the United 
States and to increase access to insurance and secu-
rities products. 
(2) The Community Reinvestment Act of 1977 
has been effective in increasing access to credit and 
capital because it imposes an affirmative and con-
tinual obligation on banks and thrifts to meet the 
needs of the local communities in which they are 
chartered. 
(3) The Community Reinvestment Act of 1977 
has leveraged more than $4,000,000,000,000 in 
loans and investments for low- and moderate-income 
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communities according to the National Community 
Reinvestment Coalition. 
(4) Major studies, including those conducted by 
the Secretary of the Treasury, the Board of Gov-
ernors of the Federal Reserve System, and Harvard 
University, have found that the Community Rein-
vestment Act of 1977 increases home mortgage lend-
ing to minority and low- and moderate-income com-
munities and that this lending is profitable. 
(5) The Community Reinvestment Act of 1977 
has leveraged a tremendous increase in home mort-
gage lending to minority and low- and moderate-in-
come borrowers as compared to whites and middle- 
income borrowers; from 1993 through 2002, home 
mortgage lending has increased by 79.5 percent to 
Blacks, by 185.8 percent to Hispanics, by 29.6 per-
cent to whites, by 90.6 percent to low- and mod-
erate-income borrowers, and by 51.4 percent to mid-
dle-income borrowers. 
(6) While the Community Reinvestment Act of 
1977 has been effective, significant wealth dispari-
ties remain; in the fourth quarter of 2004, the white 
homeownership rate was 76.2 percent while the Afri-
can-American and Hispanic homeownership rates 
were 49.1 percent and 48.9 percent, respectively. 
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(7) In 2002, the median net worth for Hispanic 
and African-American households was $7,932 and 
$5,988 respectively, while, in sharp contrast, the me-
dian net worth for White households was $88,651. 
(8) Research conducted by the chief economist 
of the National Association of Insurance Commis-
sioners found that after controlling for risk of loss, 
a 10 percentage point increase in the number of mi-
norities in a zip code is associated with a 2 percent-
age point increase in the number of ‘FAIR plans’, 
which are government-sponsored insurance plans of 
last resort for those who cannot obtain insurance in 
the private market. 
(9) In order to increase access to credit, wealth 
and insurance, it is necessary to modernize the Com-
munity Reinvestment Act of 1977 to reflect shifting 
trends in the financial services industry since, cur-
rently, only about 40 percent of the assets in the fi-
nancial industry reside in bank and thrifts and are 
covered by the Community Reinvestment Act of 
1977, which is down from about 60 percent in the 
early 1980s. 
SEC. 3. PURPOSES. 
The purposes of this Act are as follows: 
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(1) To enhance the availability of financial serv-
ices to citizens of all economic circumstances and in 
all geographic areas. 
(2) To enhance the ability of financial institu-
tions to meet the capital and credit needs of all citi-
zens and communities, including underserved com-
munities and populations. 
(3) To ensure that community reinvestment 
keeps pace with the affiliation of banks, securities 
firms, and other financial service providers, as pro-
vided by the Gramm-Leach-Bliley Act. 
TITLE 
I—MODERNIZATION 
OF 
COMMUNITY REINVESTMENT 
ACT OF 1977 AND COMMUNITY 
SERVICE OBLIGATIONS 
SEC. 101. REPEAL OF RECENT REGULATORY CHANGES TO 
THE APPLICATION OF THE COMMUNITY RE-
INVESTMENT ACT OF 1977 AND RESTORATION 
OF COMPREHENSIVE EXAMINATIONS. 
(a) IN GENERAL.—The revisions to the regulations 
of the Comptroller of the Currency, the Board of Gov-
ernors of the Federal Reserve System, the Federal Deposit 
Insurance Corporation, and the Director of the Office of 
Thrift Supervision that are described in subsection (b) 
shall cease to be effective as of such date and the regula-
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tions of such agencies in effect before the date of the pub-
lication of the regulations described in subsection (b) shall 
apply after such date of enactment. 
(b) REGULATIONS DESCRIBED.—The regulations re-
ferred to in subsection (a) are any of the following regula-
tions: 
(1) The regulations published jointly in final 
form on August 2, 2005, 70 Federal Register 44256 
et seq.— 
(A) by the Comptroller of the Currency, 
amending 12 Code of Federal Regulations part 
25; 
(B) by the Board of Governors of the Fed-
eral Reserve System, amending 12 Code of Fed-
eral Regulations part 228; and 
(C) by the Federal Deposit Insurance Cor-
poration, amending 12 Code of Federal Regula-
tions part 345. 
(2) The regulation published as a final regula-
tion on August 18, 2004, 69 Federal Register 
51155, et seq., by the Director of the Office of 
Thrift Supervision, amending 12 Code of Federal 
Regulations part 563e. 
(3) The regulation published as a final regula-
tion on March 2, 2005, 70 Federal Register 10023, 
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et seq., by the Director of the Office of Thrift Su-
pervision, also amending 12 Code of Federal Regula-
tions part 563e. 
SEC. 102. EXTENSION OF COMMUNITY REINVESTMENT OB-
LIGATIONS WITHIN A FINANCIAL HOLDING 
COMPANY. 
Section 4(l) of the Bank Holding Company Act of 
1956 (12 U.S.C. 1843(l)) is amended by adding at the 
end the following new paragraph: 
‘‘(4) COMMUNITY NEEDS.— 
‘‘(A) IN GENERAL.—All nonbank affiliates 
of bank holding companies that engage in lend-
ing or offer banking products or services shall 
be subject to the Community Reinvestment Act 
of 1977 in accordance with this paragraph and 
in the same manner as a regulated financial in-
stitution (as defined in such Act) and the 
record of any such affiliate in meeting commu-
nity credit, investment, and consumer needs 
shall be taken into account by the Federal regu-
latory agency with jurisdiction over the affili-
ate’s bank holding company in the course of re-
viewing the activities of the bank holding com-
pany or any application by such affiliate. 
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‘‘(B) BANKING PRODUCTS AND SERVICES 
DEFINED.—For purposes of this paragraph, the 
term ‘banking products and services’ includes— 
‘‘(i) insured deposits (as defined in 
section 3 of the Federal Deposit Insurance 
Act) and related deposit services; 
‘‘(ii) consumer loans and extensions of 
credit and the servicing such loans and ex-
tensions of credit; 
‘‘(iii) loans to purchase, refinance, 
construct, improve, or repair domestic resi-
dential housing or manufactured housing, 
including single-family and multifamily 
residential housing loans and home-equity 
loans, and the servicing of such loans; 
‘‘(iv) small business and commercial 
loans and the servicing of such loans; and 
‘‘(v) checking accounts, savings ac-
counts, and related accounts or instru-
ments, including accounts from which the 
owner may make withdrawals by negotiable 
or transferable instruments for the purpose 
of making payments to third parties.’’. 
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SEC. 103. PROVISIONS RELATING TO IMPROVED RESPON-
SIVENESS OF INSURED DEPOSITORY INSTITU-
TIONS TO COMMUNITY REINVESTMENT ACT 
OF 1977. 
(a) RATING REQUIRED FOR EACH STATE, METRO-
POLITAN AREA, AND SERVICE AREA.—Section 807(b)(1) 
of the Community Reinvestment Act of 1977 (12 U.S.C. 
2906(b)(1)) is amended by striking subparagraph (B) and 
inserting the following new subparagraphs: 
‘‘(B) INITIAL SEPARATE EVALUATION AND 
RATING
FOR
STATE, METROPOLITAN, OTHER 
SERVICE
AREAS
REQUIRED.—The information 
required by clauses (i) and (ii) of subparagraph 
(A) with respect to any regulated financial in-
stitution shall be presented separately, and an 
initial rating shall be determined separately, 
for— 
‘‘(i) each metropolitan area in which 
the regulated financial institution main-
tains 1 or more domestic branches; 
‘‘(ii) each State in which the regulated 
financial institution maintains 1 or more 
domestic branches outside of a metropoli-
tan area; and 
‘‘(iii) each community in which the 
regulated financial institution makes more 
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than 0.5 percent of the total amount of 
loans. 
‘‘(C) CONTENT
OF
SEPARATE
EVALUA-
TION.—A written evaluation to which subpara-
graph (B) applies shall describe how the Fed-
eral financial supervisory agency has performed 
the examination of the regulated financial insti-
tution, including a list of the individual domes-
tic branches examined. 
‘‘(D) LOW AND HIGH SATISFACTORY RAT-
INGS.—In assigning ratings under subpara-
graphs (A) and (B), a Federal financial super-
visory agency may assign a rating of ‘low satis-
factory record of meeting community credit 
needs’ or ‘high satisfactory record of meeting 
community credit needs’ in lieu of the rating re-
ferred to in paragraph (2)(B). 
‘‘(E) CRA IMPROVEMENT PLAN.— 
‘‘(i) IN GENERAL.—Whenever a regu-
lated financial institution receives a rating 
of ‘low satisfactory’ or lower in any State, 
metropolitan area, or other community in 
which it made more than 0.5 percent of 
total amount of loans, the financial institu-
tion shall submit a CRA improvement 
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plan, subject to public notice and com-
ment, to the appropriate Federal financial 
supervisory agency. 
‘‘(ii) CONTENTS OF PLAN.—Any CRA 
improvement plan submitted to an appro-
priate Federal financial supervisory agency 
by a regulated financial institution pursu-
ant to clause (i) shall describe how the in-
stitution intends to improve its perform-
ance in meeting the credit needs, including 
low- and moderate-income neighborhoods, 
in the service areas where the institution 
received a rating of ‘low satisfactory’ or 
lower. 
‘‘(iii) REVIEW OF PLAN.—Any appro-
priate Federal financial supervisory agency 
regulatory agency which receives a CRA 
improvement plan under clause (i) from a 
regulated financial institution shall review 
the plan and either approve the plan or 
send it back to the institution for revisions. 
‘‘(iv) QUARTERLY
REPORTS.—After 
an appropriate Federal financial super-
visory agency regulatory agency which re-
ceives a CRA improvement plan under 
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