Promoting Fair Lending to Small Businesses Act

Bill: 117-hr-7351
Sponsor: full_name: Rep. Velazquez, Nydia M. [D-NY-7]
Introduced: 2022-03-31
Policy area: Finance and Financial Sector
Latest action: action_date: 2022-03-31
text: Referred to the House Committee on Financial Services.

Summaries:
action_date: 2022-03-31
action_desc: Introduced in House
text: <p><strong>Promoting Fair Lending to Small Businesses Act </strong></p> <p>This bill requires the Consumer Financial Protection Bureau (CFPB) to require reports from and conduct periodic examinations of certain nondepository business lenders. Specifically, the CFPB must assess these lenders' compliance with fair lending laws, obtain information about compliance systems or procedures, and detect risks to small businesses and to minority- and women-owned businesses. Under the bill, nondepository lenders include financial institutions that are not banks or credit unions but that are required to report under certain fair lending laws. </p>

tv_txt: I 117th CONGRESS 2d Session H. R. 7351 IN THE HOUSE OF REPRESENTATIVES March 31, 2022 Ms. Velázquez introduced the following bill; which was referred to the Committee on Financial Services A BILL To amend the Consumer Financial Protection Act of 2010 to provide for the supervision of nondepository persons offering or making small business loans, and for other purposes.

1. Short title This Act may be cited as the Promoting Fair Lending to Small Businesses Act . 2. Supervision of nondepository persons offering or making small business loans (a) In general The Consumer Financial Protection Act of 2010 ( 12 U.S.C. 5481 et seq. ) is amended by inserting after section 1024 the following: 1024A. Supervision of nondepository persons offering or making small business loans (a) Definitions In this section: (1) Covered nondepository lender The term covered nondepository lender means a financial institution (as defined under section 704B(h) of the Equal Credit Opportunity Act ( 15 U.S.C. 1691c–2(h) )) that— (A) is not a depository institution or credit union; and (B) is required to compile, maintain, and report information pursuant to section 704B of the Equal Credit Opportunity Act ( 15 U.S.C. 1691c–2 ). (2) ECOA terms The terms minority-owned business , women-owned business , and small business have the meaning given those terms, respectively, under section 704B(h) of the Equal Credit Opportunity Act ( 15 U.S.C. 1691c–2(h) ). (b) Supervision (1) In general The Bureau shall require reports and conduct examinations on a periodic basis of covered nondepository lenders for purposes of— (A) assessing compliance with the requirements of the Equal Credit Opportunity Act ( 15 U.S.C. 1691 et seq. ); (B) obtaining information about the activities and compliance systems or procedures of the covered nondepository lender; and (C) detecting and assessing risks to minority-owned businesses, women-owned businesses, and small businesses and to markets for credit to such businesses. (2) Risk-based supervision program The Bureau shall exercise its authority under paragraph (1) in a manner designed to ensure that such exercise, with respect to covered nondepository lenders, is based on the assessment by the Bureau of the risks posed to minority-owned businesses, women-owned businesses, and small businesses in the relevant product markets and geographic markets, and taking into consideration, as applicable— (A) the asset size of the covered nondepository lender; (B) the volume of transactions involving extending credit to minority-owned businesses, women-owned businesses, and small businesses in which the covered nondepository lender engages; (C) the risks to minority-owned businesses, women-owned businesses, and small businesses created by the provision of such credit; (D) the extent to which the covered nondepository lender is subject to oversight by State authorities for fair lending in the provision of such credit; and (E) any other factors that the Bureau determines to be relevant to a class of covered nondepository lenders. . (b) Clerical amendment The table of contents in section 1(b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act is amended by inserting after the item relating to section 1024 the following: Sec. 1024A. Supervision of nondepository persons offering or making small business loans. .