Title: Examining Educational Redlining in Lending Act
Policy area: Finance and Financial Sector

Summary:
Examining Educational Redlining in Lending Act
This bill requires the Consumer Financial Protection Bureau to annually assess and report on the use of educational data in determining a consumer's creditworthiness by an individual offering a consumer financial product or service.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9699 Introduced in House (IH)]

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117th CONGRESS
  2d Session
                                H. R. 9699

 To require the Bureau of Consumer Financial Protection to conduct an 
 assessment of the use of certain educational data in determining the 
       creditworthiness of an applicant, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           December 30, 2022

 Mrs. Beatty introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
 To require the Bureau of Consumer Financial Protection to conduct an 
 assessment of the use of certain educational data in determining the 
       creditworthiness of an applicant, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Examining Educational Redlining in 
Lending Act''.

SEC. 2. ASSESSMENT OF CERTAIN EDUCATIONAL DATA.

    (a) Assessment.--Not later than 180 days after the date of the 
enactment of this Act and annually thereafter, the Bureau of Consumer 
Financial Protection (referred to in this section as the ``Bureau'') 
shall, in coordination with relevant executive agencies and national 
civil rights stakeholders, assess--
            (1) the use of certain educational data by covered persons 
        in determining the creditworthiness of an applicant;
            (2) the use of an underwriting process that involves 
        gathering data points and creating applicant profiles, 
        including automated or algorithmic processes, and the risks of 
        such use, by covered persons to determine the creditworthiness 
        of an applicant; and
            (3) what policies and guidelines are in place to ensure 
        decisions do not result in a disparate impact on a protected 
        class.
    (b) Report to Congress.--Not later than 60 days after the 
completion of each assessment required under subsection (a) and 
annually thereafter, the Bureau shall submit to the Committee on 
Financial Services of the House of Representatives and the Committee on 
Banking, Housing, and Urban Affairs of the Senate the findings of such 
assessment and any recommendations based on such findings.
    (c) Publication.--Not later than 30 days after the completion of 
the assessment required under subsection (a), the Bureau shall make 
available on a publicly accessible website--
            (1) the findings of the assessment under subsection (a);
            (2) a list of all covered persons that use certain 
        educational data; and
            (3) a list of all covered persons that use an underwriting 
        process that involves gathering data points and creating 
        applicant profiles, including automated or algorithmic 
        processes, to determine the creditworthiness of an applicant.
    (d) Definitions.--In this section:
            (1) Applicant's background.--The term ``applicant's 
        background'' includes data related to or derived from the 
        following:
                    (A) Attendance at an academic institution.
                    (B) Academic majors pursued at an academic 
                institution.
                    (C) Grades or test scores from or used for 
                admission into an academic institution.
                    (D) Educational attainment.
            (2) Certain educational data.--The term ``certain 
        educational data'' means data, including non-individualized 
        data, that indicates or is created, derived, or inferred from 
        an applicant's background including whether an applicant has 
        attended any of the following:
                    (A) An eligible institution.
                    (B) A junior or community college.
            (3) Covered person.--The term ``covered person'' has the 
        meaning given such term in section 1002 of the Consumer 
        Financial Protection Act of 2010 (12 U.S.C. 5481).
            (4) Eligible institution.--The term ``eligible 
        institution'' has the meaning given that term in section 371(a) 
        of the Higher Education Act of 1965 (20 U.S.C. 1067q(a)).
            (5) Junior or community college.--The term ``junior or 
        community college'' has the meaning given that term in section 
        312(f) of the Higher Education Act of 1965 (20 U.S.C. 1058(f)).
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