HR 1479 IHCommentsClose CommentsPermalink

To enhance the availability of capital, credit, and other banking and financial services for all citizens and communities, to ensure that community reinvestment requirements are updated to account for changes in the financial industry and that reinvestment requirements keep 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.CommentsClose CommentsPermalink

March 12, 2009CommentsClose CommentsPermalink

Ms. EDDIE BERNICE JOHNSON of Texas introduced the following bill; which was referred to the Committee on Financial Services, and in addition to the Committee on Rules, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concernedCommentsClose CommentsPermalink

To enhance the availability of capital, credit, and other banking and financial services for all citizens and communities, to ensure that community reinvestment requirements are updated to account for changes in the financial industry and that reinvestment requirements keep 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.CommentsClose CommentsPermalink

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title- This Act may be cited as the ‘Community Reinvestment Modernization Act of 2009’.CommentsClose CommentsPermalink





(b) Table of Contents- The table of contents of this Act is as follows:CommentsClose CommentsPermalink





Sec. 1. Short title; table of contents.CommentsClose CommentsPermalink





Sec. 2. Findings.CommentsClose CommentsPermalink





Sec. 3. Purposes.CommentsClose CommentsPermalink

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 Reinvestment Act of 1977 and restoration of comprehensive examinations.CommentsClose CommentsPermalink





Sec. 102. Extension of community reinvestment obligations within a financial holding company.CommentsClose CommentsPermalink





Sec. 103. Provisions relating to improved responsiveness of insured depository institutions to Community Reinvestment Act of 1977.CommentsClose CommentsPermalink





Sec. 104. Reduction of CRA rating due to predatory lending and other negative credit practices.CommentsClose CommentsPermalink





Sec. 105. Small business loan data collection.CommentsClose CommentsPermalink





Sec. 106. Data collection of deposit accounts.CommentsClose CommentsPermalink





Sec. 107. Responsiveness to community needs for securities and investment services.CommentsClose CommentsPermalink





Sec. 108. Responsiveness to community needs for mortgages and mortgage related services by mortgage banks.CommentsClose CommentsPermalink





Sec. 109. Responsiveness to community needs for insurance services.CommentsClose CommentsPermalink





Sec. 110. Satisfactory ratings required by securities company, mortgage bank, and insurance company affiliates of financial holding companies.CommentsClose CommentsPermalink





Sec. 111. Responsiveness to community needs by credit unions.CommentsClose CommentsPermalink

TITLE II--DATA DISCLOSURE REQUIREMENTS

Subtitle A--Disclosure of Insurance Availability and Insurer Investment Information

Sec. 201. Short title.CommentsClose CommentsPermalink





Sec. 202. Establishment of general requirements to submit information.CommentsClose CommentsPermalink





Sec. 203. Reporting of noncommercial insurance information.CommentsClose CommentsPermalink





Sec. 204. Reporting of rural insurance information.CommentsClose CommentsPermalink





Sec. 205. Waiver of reporting requirements.CommentsClose CommentsPermalink





Sec. 206. Reporting by private mortgage insurers.CommentsClose CommentsPermalink





Sec. 207. Reporting of information regarding investments by insurers.CommentsClose CommentsPermalink





Sec. 208. Submission of information to Secretary and maintenance of information.CommentsClose CommentsPermalink





Sec. 209. Availability and access system.CommentsClose CommentsPermalink





Sec. 210. Designations.CommentsClose CommentsPermalink





Sec. 211. Enforcement.CommentsClose CommentsPermalink





Sec. 212. Exemption and relation to State laws.CommentsClose CommentsPermalink





Sec. 213. Regulations.CommentsClose CommentsPermalink





Sec. 214. Definitions.CommentsClose CommentsPermalink





Sec. 215. Effective date.CommentsClose CommentsPermalink

Subtitle B--Improvements in Other Data Disclosure Requirements

Sec. 221. Maintenance and disclosure of information by the Financial Institutions Examination Council.CommentsClose CommentsPermalink

TITLE III--REGULATORY AND STRUCTURAL REFORMS

Sec. 301. Antiredlining requirement for financial holding companies.CommentsClose CommentsPermalink





Sec. 302. Notice and public comment required before establishing a financial holding company.CommentsClose CommentsPermalink





Sec. 303. Public meetings for bank acquisitions and mergers.CommentsClose CommentsPermalink





Sec. 304. Branch closure requirements.CommentsClose CommentsPermalink





Sec. 305. CRA examination schedule for small banks.CommentsClose CommentsPermalink





Sec. 306. CRA sunshine requirements.CommentsClose CommentsPermalink





Sec. 307. Continuing community reinvestment requirement for financial holding companies.CommentsClose CommentsPermalink





Sec. 308. Changes in reporting requirements under the Home Mortgage Disclosure Act of 1975.CommentsClose CommentsPermalink





Sec. 309. Annual report and congressional hearings.CommentsClose CommentsPermalink

SEC. 2. FINDINGS.

The Congress finds as follows:CommentsClose CommentsPermalink





(1) Because the Community Reinvestment Act of 1977 requires that community needs be met in a safe and sound manner, the Act must be updated and applied to nonbank financial institutions as well as depository institutions.CommentsClose CommentsPermalink





(2) The Community Reinvestment Act of 1977 promotes community development through financing activities including affordable housing (rental and homeowner), small businesses, and economic development.CommentsClose CommentsPermalink





(3) It is necessary to increase homeownership and small business ownership for low- and moderate-income borrowers and persons of color through safe and sound lending. It also is necessary to close the wealth gap in the United States and to increase access to insurance and securities products.CommentsClose CommentsPermalink





(4) The Community Reinvestment Act of 1977 has been effective in increasing access to credit and capital because it imposes an affirmative and continual obligation on banks and thrifts to meet the needs of the local communities in which they are chartered.CommentsClose CommentsPermalink





(5) The Community Reinvestment Act of 1977 has leveraged more than $6,000,000,000,000 in loans and investments for low- and moderate-income communities according to the National Community Reinvestment Coalition.CommentsClose CommentsPermalink





(6) Major studies, including those conducted by the Secretary of the Treasury, the Board of Governors of the Federal Reserve System, and Harvard University, have found that the Community Reinvestment Act of 1977 increases home mortgage lending to minority and low- and moderate-income communities and that this lending is profitable.CommentsClose CommentsPermalink





(7) The Community Reinvestment Act of 1977 has leveraged a tremendous increase in home mortgage lending to minority and low- and moderate-income 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 percent to Whites, by 90.6 percent to low- and moderate-income borrowers, and by 51.4 percent to middle-income borrowers.CommentsClose CommentsPermalink





(8) As recorded by data required by the Community Reinvestment Act of 1977, the annual dollar amount of community development loans more than tripled--from $17,700,000,000 in 1996 to $63,800,000,000 in 2007. Depository institutions also made 14,800,000 small business loans totaling more than $581,000,000,000 in low- and moderate-income neighborhoods from 1996 through 2007.CommentsClose CommentsPermalink





(9) Yet, inequalities in access to credit and barriers to healthy product choice remain: the Board of Governors of the Federal Reserve System documents that lenders covered by the Community Reinvestment Act of 1977 are less likely to offer high-cost and risky loan products such as piggyback loans than lenders which are not subject to such Act.CommentsClose CommentsPermalink





(10) The disproportionate amount of high-cost lending in minority and working class communities would be reduced if the Community Reinvestment Act of 1977 was expanded to non-bank institutions currently not covered by the Act.CommentsClose CommentsPermalink





(11) Wealth inequalities are stark, and could be reduced in reinvestment requirements were extended to other segments of the financial industry.CommentsClose CommentsPermalink





(12) In 2002, the median net worth for Hispanic and African-American households was $7,932 and $5,988 respectively, while, in sharp contrast, the median net worth for White households was $88,651.CommentsClose CommentsPermalink





(13) Access to insurance remains unequal, as research conducted by the chief economist of the National Association of Insurance Commissioners found that after controlling for risk of loss, a 10 percentage point increase in the number of minorities in a zip code is associated with a 2 percentage 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.CommentsClose CommentsPermalink





(14) In order to increase access to credit, wealth and insurance, it is necessary to modernize the Community Reinvestment Act of 1977 to reflect shifting trends in the financial services industry as mergers among banks and non-bank financial institutions as well as changes in banking and lending practices.CommentsClose CommentsPermalink

SEC. 3. PURPOSES.

The purposes of this Act are as follows:CommentsClose CommentsPermalink





(1) To enhance the availability of financial services to citizens of all economic circumstances and in all geographic areas.CommentsClose CommentsPermalink





(2) To enhance the ability of financial institutions to meet the capital and credit needs, and needs for other banking and financial services of all citizens and communities, including and especially minority and low- and moderate-income communities and populations.CommentsClose CommentsPermalink





(3) To ensure that community reinvestment keeps pace with developments in the financial industry and with the affiliation of banks, securities firms, and other financial service providers, as provided by the Gramm-Leach-Bliley Act.CommentsClose CommentsPermalink

TITLE I--MODERNIZATION OF COMMUNITY REINVESTMENT ACT OF 1977 AND COMMUNITY SERVICE OBLIGATIONSCommentsClose CommentsPermalink

SEC. 101. REPEAL OF RECENT REGULATORY CHANGES TO THE APPLICATION OF THE COMMUNITY REINVESTMENT 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 Governors 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 regulations of such agencies in effect before the date of the publication of the regulations described in subsection (b) shall apply after such date of enactment.CommentsClose CommentsPermalink





(b) Regulations Described- The regulations referred to in subsection (a) are any of the following regulations:CommentsClose CommentsPermalink





(1) The regulations published jointly in final form on August 2, 2005, 70 Federal Register 44256 et seq-CommentsClose CommentsPermalink





(A) by the Comptroller of the Currency, amending 12 Code of Federal Regulations part 25;CommentsClose CommentsPermalink





(B) by the Board of Governors of the Federal Reserve System, amending 12 Code of Federal Regulations part 228; andCommentsClose CommentsPermalink





(C) by the Federal Deposit Insurance Corporation, amending 12 Code of Federal Regulations part 345.CommentsClose CommentsPermalink





(2) The regulation published as a final regulation 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.CommentsClose CommentsPermalink





(3) The regulation published as a final regulation on March 2, 2005, 70 Federal Register 10023, et seq., by the Director of the Office of Thrift Supervision, also amending 12 Code of Federal Regulations part 563e.CommentsClose CommentsPermalink





(4) The regulation published as a final regulation on March 22, 2007, 72, Federal Register 13429, et seq., by the Director of the Office of Thrift Supervision, also amending 12 Code of Federal Regulations part 563e.CommentsClose CommentsPermalink

SEC. 102. EXTENSION OF COMMUNITY REINVESTMENT OBLIGATIONS 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:CommentsClose CommentsPermalink





‘(4) COMMUNITY NEEDS-CommentsClose CommentsPermalink





‘(A) IN GENERAL- All nonbank affiliates of any bank holding company that engage in lending or offer banking products or services, and all other nonbank financial institution affiliates of any bank holding company (including insurance companies and securities firms), shall be subject to the Community Reinvestment Act of 1977 in accordance with this paragraph and in the same manner as a regulated financial institution (as defined in such Act) and the record of any such affiliate in meeting community credit, investment, and consumer needs shall be taken into account by the Federal regulatory agency with jurisdiction over the affiliate’s bank holding company in the course of reviewing the activities of the bank holding company or any application by such affiliate.CommentsClose CommentsPermalink





‘(B) BANKING PRODUCTS AND SERVICES DEFINED- For purposes of this paragraph, the term ‘banking products and services’ includes--CommentsClose CommentsPermalink





‘(i) insured deposits (as defined in section 3 of the Federal Deposit Insurance Act) and related deposit services;CommentsClose CommentsPermalink





‘(ii) consumer loans and extensions of credit and the servicing such loans and extensions of credit;CommentsClose CommentsPermalink





‘(iii) loans to purchase, refinance, construct, improve, or repair domestic residential housing or manufactured housing, including single-family and multifamily residential housing loans and home-equity loans, and the servicing of such loans;CommentsClose CommentsPermalink





‘(iv) small business and commercial loans and the servicing of such loans; andCommentsClose CommentsPermalink





‘(v) checking accounts, savings accounts, and related accounts or instruments, including accounts from which the owner may make withdrawals by negotiable or transferable instruments for the purpose of making payments to third parties.’.CommentsClose CommentsPermalink

SEC. 103. PROVISIONS RELATING TO IMPROVED RESPONSIVENESS OF INSURED DEPOSITORY INSTITUTIONS TO COMMUNITY REINVESTMENT ACT OF 1977.

(a) Rating Required for Each State, Metropolitan 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:CommentsClose CommentsPermalink





‘(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 institution shall be presented separately, and an initial rating shall be determined separately, for--CommentsClose CommentsPermalink





‘(i) each metropolitan area in which the regulated financial institution maintains 1 or more domestic branches;CommentsClose CommentsPermalink





‘(ii) each State in which the regulated financial institution maintains 1 or more domestic branches outside of a metropolitan area;CommentsClose CommentsPermalink





‘(iii) each community in which the regulated financial institution makes more than 0.5 percent of the total amount of loans; andCommentsClose CommentsPermalink





‘(iv) the communities rated by the evaluation shall include the communities in which the great majority of loans have been issued.CommentsClose CommentsPermalink





‘(C) CONTENT OF SEPARATE EVALUATION- A written evaluation to which subparagraph (B) applies shall describe how the Federal financial supervisory agency has performed the examination of the regulated financial institution, including a list of the individual domestic branches examined.CommentsClose CommentsPermalink





‘(D) LOW AND HIGH SATISFACTORY RATINGS- In assigning ratings under subparagraphs (A) and (B), a Federal financial supervisory agency may assign a rating of ‘low satisfactory record of meeting community credit needs’ or ‘high satisfactory record of meeting community credit needs’ in lieu of the rating referred to in paragraph (2)(B).CommentsClose CommentsPermalink





‘(E) CRA IMPROVEMENT PLAN-CommentsClose CommentsPermalink





‘(i) IN GENERAL- Whenever a regulated 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 institution shall submit a CRA improvement plan, subject to public notice and comment, to the appropriate Federal financial supervisory agency.CommentsClose CommentsPermalink





‘(ii) CONTENTS OF PLAN- Any CRA improvement plan submitted to an appropriate Federal financial supervisory agency by a regulated financial institution pursuant to clause (i) shall describe how the institution intends to improve its performance in meeting the credit needs, including minority and low- and moderate-income neighborhoods, in the service areas where the institution received a rating of ‘low satisfactory’ or lower.CommentsClose CommentsPermalink





‘(iii) REVIEW OF PLAN- Any appropriate 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.CommentsClose CommentsPermalink





‘(iv) QUARTERLY REPORTS- After an appropriate Federal financial supervisory regulatory agency which receives a CRA improvement plan under clause (i) from a regulated financial institution approves the plan, the financial institution shall submit reports and data to the agency on a quarterly basis so that the regulatory agency and the general public can monitor CRA performance.CommentsClose CommentsPermalink





‘(v) ADDITIONAL LIMITATIONS- If any regulated financial institution receives a rating of ‘Needs-to-improve’ or ‘Substantial noncompliance’ in any assessment area, the appropriate Federal financial supervisory agency may not accept or approve any application by such institution or any merger applications involving such institution until the institution improves this performance on a subsequent evaluation.CommentsClose CommentsPermalink





‘(vi) CONSIDERATION OF PERFORMANCE IN CERTAIN REVIEWS- The appropriate Federal financial supervisory agency shall consider the progress of a regulated financial institution that submits a CRA improvement plan in meeting the goals described in such plan as an integral factor in reviews of any application by such institution or any merger applications involving such institution.CommentsClose CommentsPermalink





‘(vii) CRA IMPROVEMENT PLAN- For purposes of this paragraph, the term ‘CRA improvement plan’ means a plan of a regulated financial institution to improve its performance in meeting the credit needs, including minority and low- and moderate-income neighborhoods, in the service areas where the institution received a rating of ‘low satisfactory’ or lower.’.CommentsClose CommentsPermalink





(b) Additional Performance Factors- Section 804(a)(1) of the Community Reinvestment Act of 1977 (12 U.S.C. 2903(a)(1)) is amended--CommentsClose CommentsPermalink





(1) by inserting ‘and neighborhoods of different racial characteristics’ after ‘low- and moderate-income neighborhoods’; andCommentsClose CommentsPermalink





(2) by inserting ‘, taking into account the institution’s share of the total amount of credit extended in neighborhoods of different racial and income characteristics within such community’ before the semicolon at the end.CommentsClose CommentsPermalink





(c) Technical and Conforming Amendments-CommentsClose CommentsPermalink





(1) Section 807(b)(1)(A)(iii) of the Community Reinvestment Act of 1977 (12 U.S.C. 2906(b)(1)(A)(iii)) is amended--CommentsClose CommentsPermalink





(A) by inserting ‘overall’ after ‘the institution’s’; andCommentsClose CommentsPermalink





(B) by inserting ‘, taking into account each of the initial ratings determined under subparagraph (B) for each State, metropolitan, and service area in which the institution makes more than 0.5 percent of the total amount of loans’ before the period at the end.CommentsClose CommentsPermalink





(2) Section 807 of the Community Reinvestment Act of 1977 (12 U.S.C. 2906) is amended--CommentsClose CommentsPermalink





(A) by striking subsection (d); andCommentsClose CommentsPermalink





(B) by redesignating subsection (e) as subsection (d).CommentsClose CommentsPermalink

SEC. 104. REDUCTION OF CRA RATING DUE TO PREDATORY LENDING AND OTHER NEGATIVE CREDIT PRACTICES.

(a) In General- Section 804 of the Community Reinvestment Act of 1977 (12 U.S.C. 2903) is amended by adding at the end the following new subsections:CommentsClose CommentsPermalink





‘(d) Treatment of Predatory Lending and Other Discriminatory Credit Practices-CommentsClose CommentsPermalink





‘(1) IN GENERAL- In the case of a regulated financial institution, or an affiliate or business partner of any such institution, which the appropriate Federal financial supervisory agency determines has engaged in any credit practice or securitization activity which has a negative impact on a community or neighborhood, such as predatory lending or abusive payday lending, or has engaged in any other practice or service in a manner which unlawfully discriminates against any person or against minority or low- and moderate-income neighborhoods, the agency--CommentsClose CommentsPermalink





‘(A) may not take any such practice or service into account in assessing the institution’s record of meeting the credit needs of its entire community; andCommentsClose CommentsPermalink





‘(B) shall reduce the rating that would otherwise obtain under section 807 with respect to such institution after consideration of the extent of such negative or discriminatory practice or service.CommentsClose CommentsPermalink





‘(2) UNLAWFUL DISCRIMINATION AND PREDATORY LENDING- For purposes of paragraph (1), the terms ‘predatory lending’ and ‘unlawfully discriminates’ include any lending or discriminatory practice those that violates the Fair Housing Act, the Equal Credit Opportunity Act, the Truth in Lending Act, the Real Estate Settlement Procedures Act, the Federal Trade Commission Act, or any other consumer and fair lending law, including the law of any State or political subdivision of any State.CommentsClose CommentsPermalink





‘(e) Maintenance of Certain Records- For purposes of determining whether a regulated financial institution engages in any practice or service described in subsection (d), an appropriate Federal financial supervisory agency may require, by regulation, regulated financial institutions to maintain records of the terms and conditions of credit extended by the institution or the terms and conditions at which credit was offered even though no credit was extended.’.CommentsClose CommentsPermalink

SEC. 105. SMALL BUSINESS LOAN DATA COLLECTION.

(a) In General- The Equal Credit Opportunity Act (15 U.S.C. 1691 et seq.) is amended by inserting after section 704A the following new section:CommentsClose CommentsPermalink

‘SEC. 704B. SMALL BUSINESS LOAN DATA COLLECTION.

‘(a) In General- Subject to the requirements of this section, in the case of any application to a depository institution for credit for a small business, the depository institution shall--CommentsClose CommentsPermalink





‘(1) inquire whether the business is a women- or minority-owned business, without regard to whether such application is received in person, by mail, by telephone, by electronic mail or other form of electronic transmission, or by any other means and whether or not such application is in response to a solicitation by the depository institution; andCommentsClose CommentsPermalink





‘(2) maintain a record of the responses to such inquiry separate from the application and accompanying information.CommentsClose CommentsPermalink





‘(b) Right To Refuse- Any applicant for credit may refuse to provide any information requested pursuant to subsection (a) in connection with any application for credit.CommentsClose CommentsPermalink





‘(c) No Access by Underwriters- No loan underwriter or other officer or employee of a depository institution, or any affiliate of a depository institution, involved in making any determination concerning an application for credit shall have access to any information provided by the applicant pursuant to a request under subsection (a) in connection with such application.CommentsClose CommentsPermalink





‘(d) Form and Manner of Information-CommentsClose CommentsPermalink





‘(1) IN GENERAL- Each depository institution shall compile and maintain, in accordance with regulations of the Board, a record of the information provided by any loan applicant pursuant to a request under subsection (a).CommentsClose CommentsPermalink





‘(2) ITEMIZED- Information compiled and maintained under paragraph (1) shall also be itemized in order to clearly and conspicuously disclose the following:CommentsClose CommentsPermalink





‘(A) The number of the application and the date the application was received.CommentsClose CommentsPermalink





‘(B) The type and purpose of the loan or other credit being applied for.CommentsClose CommentsPermalink





‘(C) The amount of the credit or credit limit applied for and the amount of the credit transaction or the credit limit approved for such applicant.CommentsClose CommentsPermalink





‘(D) The type of action taken with respect to such application and the date of such action.CommentsClose CommentsPermalink





‘(E) The census tract in which is located the principal place of business of the small business loan applicant.CommentsClose CommentsPermalink





‘(F) The gross annual revenue of the business in the last fiscal year of the small business loan applicant preceding the date of the application.CommentsClose CommentsPermalink





‘(3) NO PERSONALLY IDENTIFIABLE INFORMATION- In compiling and maintaining any record of information under this section, a depository institution may not include in such record the name, specific address (other than the census tract required under paragraph (1)(E)), telephone number, electronic mail address, and any other personally identifiable information concerning any individual who is, or is connected with, the small business loan applicant.CommentsClose CommentsPermalink





‘(e) Availability of Information-CommentsClose CommentsPermalink





‘(1) SUBMISSION TO AGENCIES- The data required to be compiled and maintained under this section by any depository institution shall be submitted annually to the agency to whom the enforcement of the requirements of this title are committed under section 704.CommentsClose CommentsPermalink





‘(2) AVAILABILITY OF INFORMATION- Information compiled and maintained under this section shall be retained for not less than 3 years after the date of preparation and shall be made available to the public, upon request, in the form required under regulations prescribed by the Board. In addition, the Board shall annually provide this data to the public.CommentsClose CommentsPermalink





‘(f) Definitions- For purposes of this section, the following definitions shall apply:CommentsClose CommentsPermalink





‘(1) DEPOSITORY INSTITUTION- The term ‘depository institution’--CommentsClose CommentsPermalink





‘(A) has the meaning given the term in section 3 of the Federal Deposit Insurance Act; andCommentsClose CommentsPermalink





‘(B) includes any credit union.CommentsClose CommentsPermalink





‘(2) MINORITY-OWNED BUSINESS- The term ‘minority-owned business’ means a business--CommentsClose CommentsPermalink





‘(A) more than 50 percent of the ownership or control of which is held by 1 or more minority individuals; andCommentsClose CommentsPermalink





‘(B) more than 50 percent of the net profit or loss of which accrues to 1 or more minority individuals.CommentsClose CommentsPermalink





‘(3) WOMEN-OWNED BUSINESS- The term ‘women-owned business’ means a business--CommentsClose CommentsPermalink





‘(A) more than 50 percent of the ownership or control of which is held by 1 or more women; andCommentsClose CommentsPermalink





‘(B) more than 50 percent of the net profit or loss of which accrues to 1 or more women.CommentsClose CommentsPermalink





‘(4) MINORITY- The term ‘minority’ has the meaning given to such term by section 1204(c)(3) of the Financial Institutions Reform, Recovery and Enforcement Act of 1989.CommentsClose CommentsPermalink





‘(5) SMALL BUSINESS LOAN- The term ‘small business loan’ includes any loan described or defined as a small business loan under any of the following provisions of title 12 of the Code of Federal Regulations:CommentsClose CommentsPermalink





‘(A) Section 25.12(u) of subpart A of part 25.CommentsClose CommentsPermalink





‘(B) Section 228.12(u) of part 228.CommentsClose CommentsPermalink





‘(C) Section 345.12(u) of part 345.CommentsClose CommentsPermalink





‘(D) Section 563e.12(t) of part 563e.’.CommentsClose CommentsPermalink





(b) Technical and Conforming Amendments- Section 701(b) of the Equal Credit Opportunity Act (15 U.S.C. 1691(b)) is amended--CommentsClose CommentsPermalink





(1) by striking ‘or’ after the semicolon at the end of paragraph (3);CommentsClose CommentsPermalink





(2) in paragraph (4), by striking the period at the end and inserting ‘; or’; andCommentsClose CommentsPermalink





(3) by inserting after paragraph (4), the following new paragraph:CommentsClose CommentsPermalink





‘(5) to make an inquiry under section 704B in accordance with the requirements of such section.’.CommentsClose CommentsPermalink





(c) Clerical Amendment- The table of sections for title VII of the Consumer Credit Protection Act is amended by inserting after the item relating to section 704A the following new item:CommentsClose CommentsPermalink





‘704B. Small business loan data collection.’.CommentsClose CommentsPermalink





(d) Effective Date- This section and the amendments made by this section shall take effect at the end of the 6-month period beginning on the date of the enactment of this Act.CommentsClose CommentsPermalink

SEC. 106. DATA COLLECTION OF DEPOSIT ACCOUNTS.

(a) In General-CommentsClose CommentsPermalink





(1) RECORDS REQUIRED- For each branch, automated teller machine at which deposits are accepted, and other deposit taking service facility with respect to any depository institution, the depository institution shall maintain records of the number and dollar amounts of deposit accounts of customers.CommentsClose CommentsPermalink





(2) GEOCODED ADDRESSES OF DEPOSITORS- The customers’ addresses shall be geocoded so that data shall be collected regarding the census tracts of the residence or business location of the customers.CommentsClose CommentsPermalink





(3) IDENTIFICATION OF TYPE OF DEPOSITOR- In maintaining records on any depositor under this paragraph, the depository institution shall also report whether the deposit account is for a residential or commercial customer.CommentsClose CommentsPermalink





(4) PUBLIC AVAILABILITY-CommentsClose CommentsPermalink





(A) IN GENERAL- The following information shall be publicly available on an annual basis:CommentsClose CommentsPermalink





(i) The address and census tracts of each branch, automated teller machine at which deposits are accepted, and other deposit taking service facility with respect to any depository institution.CommentsClose CommentsPermalink





(ii) The type of deposit account including whether the account was a checking or savings account.CommentsClose CommentsPermalink





(iii) Data on the number and dollar amounts of the accounts, presented by census tract location of the residential and commercial customers, shall also be collected and disseminated.CommentsClose CommentsPermalink





(B) PROTECTION OF IDENTITY- In the publicly available data, any personally identifiable data element shall be removed so as to protect the identities of the commercial and residential customers.CommentsClose CommentsPermalink





(b) Availability of Information-CommentsClose CommentsPermalink





(1) SUBMISSION TO AGENCIES- The data required to be compiled and maintained under this section by any depository institution shall be submitted annually to the agency to whom the enforcement of the requirements of this title are committed.CommentsClose CommentsPermalink





(2) AVAILABILITY OF INFORMATION- Information compiled and maintained under this section shall be retained for not less than 3 years after the date of preparation and shall be made available to the public, upon request, in the form required under regulations prescribed by the Board.CommentsClose CommentsPermalink





(c) Definitions- For purposes of this section, the following definitions shall apply:CommentsClose CommentsPermalink





(1) DEPOSITORY INSTITUTION- The term ‘depository institution’--CommentsClose CommentsPermalink





(A) has the meaning given the term in section 3 of the Federal Deposit Insurance Act; andCommentsClose CommentsPermalink





(B) includes any credit union.CommentsClose CommentsPermalink





(2) DEPOSIT ACCOUNT- The term ‘deposit account’ includes any checking, savings, and other types of accounts, as defined by the Board of Governors of the Federal Reserve System.CommentsClose CommentsPermalink





(d) Agency Use- Any Federal agency with jurisdiction over any depository institution shall--CommentsClose CommentsPermalink





(1) use the data on branches and deposit accounts acquired under this section as part of the examination of the depository institution under the Community Reinvestment Act of 1977; andCommentsClose CommentsPermalink





(2) assess the distribution of residential and commercial accounts at such depository institution across income and minority level of census tracts.CommentsClose CommentsPermalink

SEC. 107. RESPONSIVENESS TO COMMUNITY NEEDS FOR SECURITIES AND INVESTMENT SERVICES.

(a) Affirmative Obligation- The purpose of this section is to recognize that each securities company has, with respect to each community comprising an assessment area of such company, a continuing and affirmative obligation to meet the need for financial services in such communities, including the needs of low- and moderate-income neighborhoods and persons of modest means.CommentsClose CommentsPermalink





(b) Definitions- For purposes of this section, the following definitions shall apply:CommentsClose CommentsPermalink





(1) ASSESSMENT AREA- The term ‘assessment area’ means, with respect to a securities company, each community, including a State, metropolitan areas, and rural counties, in which such company--CommentsClose CommentsPermalink





(A) maintains a retail office or is represented by an agent;CommentsClose CommentsPermalink





(B) has not less than 0.5 percent of the total market in securities; orCommentsClose CommentsPermalink





(C) the communities constituting assessment areas shall include the communities in which the great majority of securities have been issued.CommentsClose CommentsPermalink





(2) COMMUNITY DEVELOPMENT INVESTMENT- The term ‘community development investment’ means investment in activities that revitalize and stabilize low- and moderate-income neighborhoods and directly benefit low- and moderate-income individuals, including investment in affordable housing, community services, small-business development, and economic development.CommentsClose CommentsPermalink





(3) SECURITIES COMPANY- The term ‘securities company’ means any person who is--CommentsClose CommentsPermalink





(A) a broker or dealer that is registered under the Securities Exchange Act of 1934;CommentsClose CommentsPermalink





(B) a registered investment adviser, properly registered by or on behalf of either the Securities and Exchange Commission, with respect to the investment advisory activities of such investment adviser and activities incidental to such investment advisory activities; orCommentsClose CommentsPermalink





(C) an investment company that is registered under the Investment Company Act of 1940.CommentsClose CommentsPermalink





(c) Program-CommentsClose CommentsPermalink





(1) IN GENERAL- The Securities and Exchange Commission, in consultation with the Secretary of the Treasury, shall develop a program to ensure that securities companies meet the obligations described in subsection (a) and the requirements of the program under this subsection.CommentsClose CommentsPermalink





(2) FACTORS TO BE INCLUDED-CommentsClose CommentsPermalink





(A) CUSTOMER EVALUATION- The program shall include, as appropriate, a method for evaluating a securities company’s record of helping to meet the securities investment needs of its assessment area, including--CommentsClose CommentsPermalink





(i) the number and distribution of customers throughout the community, including minority and low- and moderate-income customers and the dollar amounts of the investments made by such customers;CommentsClose CommentsPermalink





(ii) the number and distribution of customers residing in minority and low- and moderate-income census tracts; andCommentsClose CommentsPermalink





(iii) the extent to which the company has adopted innovative and flexible marketing methods, such as low minimum amounts to open accounts and low transaction fees, that facilitate the sale of securities to low- and moderate-income customers.CommentsClose CommentsPermalink





(B) COMMUNITY DEVELOPMENT INVESTMENTS- The program shall include, as appropriate, a method for evaluating a securities company’s record of community development investment in each assessment area, including--CommentsClose CommentsPermalink





(i) the number and dollar amount of community development investments in the assessment area; andCommentsClose CommentsPermalink





(ii) the responsiveness of the securities company, through community development investments, to the credit, capital, and community development needs of the assessment area, including low- and moderate-income neighborhoods.CommentsClose CommentsPermalink





(C) SERVICE PERFORMANCE- The program shall include, as appropriate, a method for evaluating a securities company’s record of providing access to securities services in each assessment area, including--CommentsClose CommentsPermalink





(i) the distribution of the company’s retail offices by income level and minority level of census tract and the range of services offered by retail offices across census tracts by income level and minority level;CommentsClose CommentsPermalink





(ii) the company’s record of opening or closing retail offices in the assessment area;CommentsClose CommentsPermalink





(iii) the extent to which the securities company has adopted effective alternate service systems in minority and low- and moderate-income neighborhoods, such as providing the means for minority and low- and moderate-income individuals to gain electronic access to the company at workplaces, community centers, and similar locations in low- and moderate-income neighborhoods; andCommentsClose CommentsPermalink





(iv) the extent to which the securities company has provided investment education and other investment services, such as financial counseling classes, in minority and low- and moderate-income neighborhoods in the assessment area.CommentsClose CommentsPermalink





(3) RATING-CommentsClose CommentsPermalink





(A) IN GENERAL- At least once in each 2-year period beginning after the date of the enactment of this Act, the program shall provide for--CommentsClose CommentsPermalink





(i) an evaluation and an initial rating of the performance of each securities company in meeting the obligation established under subsection (a) in each assessment area of the company; andCommentsClose CommentsPermalink





(ii) an overall rating, based on the initial ratings pursuant to clause (i) of the overall achievement of the securities company in meeting such obligation.CommentsClose CommentsPermalink





(B) RATING CATEGORIES- The rating categories used in rating the performance of any securities company shall include ‘Outstanding’, ‘High Satisfactory’, ‘Satisfactory’, ‘Low Satisfactory’, ‘Needs-to-Improve’, and ‘Substantial Noncompliance’.CommentsClose CommentsPermalink





(C) TREATMENT OF INVESTMENT PRACTICES WITH NEGATIVE IMPACTS- In the case of any securities company which the Securities and Exchange Commission determines has engaged in securities and investment practices which have a negative impact on any assessment area of the company or has otherwise engaged in any practice or provided any service in a manner which unlawfully discriminates against any person or against low- and moderate-income neighborhoods, the Commission--CommentsClose CommentsPermalink





(i) may not take any such practice into account in assessing the extent to which such company has met its obligation under subsection (a); andCommentsClose CommentsPermalink





(ii) shall reduce the rating that would otherwise obtain under subparagraph (A) with respect to such company, after considering the extent of such negative or discriminatory practice or service.CommentsClose CommentsPermalink





(D) MAINTENANCE OF CERTAIN RECORDS- For purposes of determining whether a securities company engages in any practice or service described in subparagraph (B), the Securities and Exchange Commission may require, by regulation, securities companies to maintain records of the terms and conditions at which securities products and services were provided by the company and the terms and conditions at which such securities products or services were offered by the company even though no transaction occurred.CommentsClose CommentsPermalink





(E) IMPROVEMENT PLAN-CommentsClose CommentsPermalink





(i) IN GENERAL- Whenever a securities company receives a rating of ‘low satisfactory’ or lower in any assessment area, the company shall submit a improvement plan, subject to public notice and comment, to the Commission.CommentsClose CommentsPermalink





(ii) CONTENTS OF PLAN- Any improvement plan submitted to the Commission by a securities company pursuant to clause (i) shall describe how the institution intends to improve its performance in any assessment area where the company received a rating of ‘low satisfactory’ or lower.CommentsClose CommentsPermalink





(iii) REVIEW OF PLAN- The Commission shall review any improvement submitted under clause (i) by a securities company and either approve the plan or send it back to the company for revisions.CommentsClose CommentsPermalink





(iv) QUARTERLY REPORTS- After the Commission approves a improvement plan submitted by a securities company under clause (i), the company shall submit reports and data on a quarterly basis so that the Commission and the general public can monitor performance.CommentsClose CommentsPermalink





(v) ADDITIONAL LIMITATIONS- If any securities company receives a rating of ‘Needs-to-improve’ or ‘Substantial noncompliance’ in any assessment area, the Commission may not accept or approve any application by such securities company or any merger applications involving such company until the securities company improves performance on a subsequent evaluation.CommentsClose CommentsPermalink





(vi) CONSIDERATION OF PERFORMANCE IN CERTAIN REVIEWS- The Commission shall consider the progress in meeting the goals described in any improvement plan as an integral factor in reviews of any application by such securities company or any merger applications involving such company.CommentsClose CommentsPermalink





(4) CONSIDERATION OF SECURITIES COMPANY RATING- Whenever the Commission considers an application to the Commission by a securities company, the Securities and Exchange Commission shall--CommentsClose CommentsPermalink





(A) take into account the overall rating of the securities company under this section and any improvement plans submitted pursuant to this section;CommentsClose CommentsPermalink





(B) provide opportunity for public comment on such rating (at least a 30 day public comment period); andCommentsClose CommentsPermalink





(C) take into account changes in the community reinvestment performance of such company since the last overall rating and the likely future community reinvestment performance of such company.CommentsClose CommentsPermalink





(d) Release of Data- Information collected by the Securities and Exchange Commission in connection with the program under subsection (c) shall be made publicly available by the Commission in a format similar to the format for public disclosure of information under the Home Mortgage Disclosure Act of 1975, as determined to be appropriate by the Commission.CommentsClose CommentsPermalink

SEC. 108. RESPONSIVENESS TO COMMUNITY NEEDS FOR MORTGAGES AND MORTGAGE RELATED SERVICES BY MORTGAGE BANKS.

(a) Affirmative Obligation- Each mortgage bank shall have, with respect to each community comprising an assessment area of such mortgage bank, a continuing and affirmative obligation to meet the mortgage credit and mortgage service needs of such communities, including extensions of credit in low- and moderate-income neighborhoods of such communities.CommentsClose CommentsPermalink





(b) Definitions- For purposes of this section, the following definitions shall apply:CommentsClose CommentsPermalink





(1) ASSESSMENT AREA- The term ‘assessment area’ means, with respect to a mortgage bank, each community, including a State, metropolitan areas, and rural counties, in which such company--CommentsClose CommentsPermalink





(A) maintains a retail office or is represented by an agent;CommentsClose CommentsPermalink





(B) has not less than 0.5 percent of the total market in housing-related loans; orCommentsClose CommentsPermalink





(C) the communities constituting assessment areas shall include the communities in which the great majority of loans have been issued.CommentsClose CommentsPermalink





(2) COMMUNITY DEVELOPMENT INVESTMENT- The term ‘community development investment’ means investment in activities that revitalize and stabilize low- and moderate-income neighborhoods and directly benefit low- and moderate-income individuals, including investment in affordable housing, community services, small-business development, and economic development.CommentsClose CommentsPermalink





(3) MORTGAGE BANK- The term ‘mortgage bank’ means any lender who does not accept deposits (as defined in section 3 of the Federal Deposit Insurance Act) and originates housing-related loans.CommentsClose CommentsPermalink





(4) SECRETARY- The term ‘Secretary’ means the Secretary of Housing and Urban Development.CommentsClose CommentsPermalink





(c) Program-CommentsClose CommentsPermalink





(1) IN GENERAL- The Secretary, in consultation with the Secretary of the Treasury, shall develop a program to ensure that mortgage banks meet the obligations described in subsection (a) and the requirements of the program under this subsection.CommentsClose CommentsPermalink





(2) FACTORS TO BE INCLUDED-CommentsClose CommentsPermalink





(A) CUSTOMER EVALUATION- The program shall include, as appropriate, a method for evaluating a mortgage bank’s record of helping to meet the mortgage credit and mortgage service needs of its assessment area, including--CommentsClose CommentsPermalink





(i) the number and distribution of customers throughout the community, including minority and low- and moderate-income customers and the dollar amounts of the mortgage credit extended to such customers by the mortgage bank;CommentsClose CommentsPermalink





(ii) the number and distribution of customers residing in minority and low- and moderate-income neighborhoods and the dollar amounts of the mortgage credit extended to such customers by the mortgage bank;CommentsClose CommentsPermalink





(iii) the mortgage bank’s market share in neighborhoods of different racial and income characteristics;CommentsClose CommentsPermalink





(iv) the mortgage bank’s market share to borrowers of different racial and income characteristics;CommentsClose CommentsPermalink





(v) a comparison of the rate at which the mortgage bank rejects applications from minority and White applicants;CommentsClose CommentsPermalink





(vi) any evidence of illegal discriminatory credit practices, including steering, or offering less favorable loan products to applicants of different racial backgrounds; andCommentsClose CommentsPermalink





(vii) the extent to which the mortgage bank has adopted innovative and flexible marketing methods and products that facilitate the extension of mortgage credit on a nondiscriminatory basis to low- and moderate-income customers.CommentsClose CommentsPermalink





(B) COMMUNITY DEVELOPMENT INVESTMENTS- The program shall include, as appropriate, a method for evaluating a mortgage bank’s record of community development investment in each assessment area, including--CommentsClose CommentsPermalink





(i) the number and dollar amount of community development investments in the assessment area; andCommentsClose CommentsPermalink





(ii) the responsiveness of the mortgage bank, through community development investments, to the credit, capital, and community development needs of the assessment area, including low- and moderate-income neighborhoods.CommentsClose CommentsPermalink





(C) SERVICE PERFORMANCE- The program shall include, as appropriate, a method for evaluating a mortgage bank’s record of providing access to mortgage credit and mortgage services in each assessment area, including--CommentsClose CommentsPermalink





(i) the distribution of the mortgage bank’s retail offices by income level and minority level of census tract and the range of services offered by retail offices across census tracts by income level and minority level;CommentsClose CommentsPermalink





(ii) the bank’s record of opening or closing retail offices in the assessment area;CommentsClose CommentsPermalink





(iii) the extent to which the mortgage bank has adopted effective alternate service systems in minority and low- and moderate-income neighborhoods, such as providing the means for low- and moderate-income individuals to gain electronic access to the mortgage bank at workplaces, community centers, and similar locations in minority and low- and moderate-income neighborhoods; andCommentsClose CommentsPermalink





(iv) the extent to which the mortgage bank has provided home purchaser and home owner education and other counseling services, such as financial counseling classes, in minority and low- and moderate-income neighborhoods in the assessment area.CommentsClose CommentsPermalink





(3) RATING-CommentsClose CommentsPermalink





(A) IN GENERAL- The program shall provide for--CommentsClose CommentsPermalink





(i) an evaluation and an initial rating of the performance of each mortgage bank in meeting the obligation established under subsection (a) in each assessment area of the bank; andCommentsClose CommentsPermalink





(ii) an overall rating, based on the initial ratings pursuant to clause (i) of the overall achievement of the mortgage bank in meeting such obligation.CommentsClose CommentsPermalink





(B) RATING CATEGORIES- The rating categories used in rating the performance of any mortgage bank shall include ‘Outstanding’, ‘High Satisfactory’, ‘Satisfactory’, ‘Low Satisfactory’, ‘Needs-to-Improve’, and ‘Substantial Noncompliance’.CommentsClose CommentsPermalink





(C) TREATMENT OF CREDIT PRACTICES WITH NEGATIVE IMPACTS-CommentsClose CommentsPermalink





(i) IN GENERAL- In the case of any mortgage bank which the Secretary determines has engaged in credit practices which have a negative impact on any individuals or any assessment area of the company, such as predatory mortgage lending, or has otherwise engaged in any practice or provided any service in a manner which unlawfully discriminates against any person or against minority or low- and moderate-income neighborhoods, the Secretary--CommentsClose CommentsPermalink





(I) may not take any such practice into account in assessing the extent to which such company has met its obligation under subsection (a); andCommentsClose CommentsPermalink





(II) shall reduce the rating that would otherwise obtain under subparagraph (A) with respect to such company, after considering the extent of such negative or discriminatory practice or service.CommentsClose CommentsPermalink





(ii) UNLAWFUL DISCRIMINATION AND PREDATORY MORTGAGE LENDING- For purposes of (i), the terms ‘predatory mortgage lending’ and ‘unlawfully discriminates’ include any lending or discriminatory practice those that violates the Fair Housing Act, the Equal Credit Opportunity Act, the Truth in Lending Act, the Real Estate Settlement Procedures Act, the Federal Trade Commission Act, or any other consumer and fair lending law, including the law of any State or political subdivision of any State.CommentsClose CommentsPermalink





(D) MAINTENANCE OF CERTAIN RECORDS- For purposes of determining whether a mortgage bank engages in any practice or service described in subparagraph (B), the Secretary may require, by regulation, mortgage banks to maintain records of the terms and conditions at which mortgage loans and other services were provided by the company and the terms and conditions at which such mortgage loans and other products and services were offered by the bank even though no transaction occurred.CommentsClose CommentsPermalink





(E) IMPROVEMENT PLAN-CommentsClose CommentsPermalink





(i) IN GENERAL- Whenever a mortgage bank receives a rating of ‘low satisfactory’ or lower in any assessment area, the bank shall submit a improvement plan, subject to public notice and comment, to the Secretary.CommentsClose CommentsPermalink





(ii) CONTENTS OF PLAN- Any improvement plan submitted to the Secretary by a mortgage bank pursuant to clause (i) shall describe how the bank intends to improve its performance in any assessment area where the bank received a rating of ‘low satisfactory’ or lower.CommentsClose CommentsPermalink





(iii) REVIEW OF PLAN- The Secretary shall review any improvement submitted under clause (i) by a mortgage bank and either approve the plan or send it back to the bank for revisions.CommentsClose CommentsPermalink





(iv) QUARTERLY REPORTS- After the Secretary approves a improvement plan submitted by a mortgage bank under clause (i), the bank shall submit reports and data on a quarterly basis so that the Secretary and the general public can monitor performance.CommentsClose CommentsPermalink





(v) ADDITIONAL LIMITATIONS- If any mortgage bank receives a rating of ‘Needs-to-improve’ or ‘Substantial noncompliance’ in any assessment area, the Secretary may not accept or approve any application by such mortgage bank or any merger applications involving such bank until performance improves on a subsequent evaluation.CommentsClose CommentsPermalink





(vi) CONSIDERATION OF PERFORMANCE IN CERTAIN REVIEWS- The Secretary shall consider the progress in meeting the goals described in any improvement plan as an integral factor in reviews of any application by such mortgage bank or any merger applications involving such bank.CommentsClose CommentsPermalink





(d) Consideration of Mortgage Bank’s Rating-CommentsClose CommentsPermalink





(1) REVIEW OF RATING- At least once in each 2-year period beginning after the date of the enactment of this Act, the Secretary shall--CommentsClose CommentsPermalink





(A) conduct an examination of, and assign ratings to, mortgage banks under this subsection;CommentsClose CommentsPermalink





(B) review the overall rating of each mortgage bank under this subsection;CommentsClose CommentsPermalink





(C) provide opportunity for public comment on such rating; andCommentsClose CommentsPermalink





(D) review changes in the community reinvestment performance of such mortgage bank since the last overall rating and the likely future community reinvestment performance of such mortgage bank.CommentsClose CommentsPermalink





(2) CONSIDERATION OF MORTGAGE BANK’S RATING- Whenever the Secretary considers an application by a mortgage bank, the Secretary shall--CommentsClose CommentsPermalink





(A) take into account the overall rating of the mortgage company under this section and any improvement plans submitted pursuant to this section;CommentsClose CommentsPermalink





(B) provide opportunity for public comment on such rating (at least a 30 day public comment period); andCommentsClose CommentsPermalink





(C) take into account changes in the community reinvestment performance of such company since the last overall rating and the likely future community reinvestment performance of such company.CommentsClose CommentsPermalink





(3) NOTIFICATION OF UNSATISFACTORY PERFORMANCE- If, in conjunction with a review pursuant to paragraph (1), the Secretary determines that a mortgage bank has failed to meet the bank’s obligations described in subsection (a) and the requirements of the program under this subsection or failed to make satisfactory improvements in meeting such obligations and requirements, the Secretary shall notify the mortgage bank of such determination, describing the conditions giving rise to the notice.CommentsClose CommentsPermalink





(4) AGREEMENT TO CORRECT CONDITIONS REQUIRED- Not later than 45 days after the date of receipt by a mortgage bank of a notice given under paragraph (3) (or such additional period as the Secretary may permit), the mortgage bank shall execute an agreement, based on an improvement plan, with the Secretary to comply with the obligations and requirements applicable to the mortgage bank under this section.CommentsClose CommentsPermalink





(5) SECRETARY MAY IMPOSE LIMITATIONS- Until the conditions described in a notice to a mortgage bank under paragraph (3) are corrected, the Secretary may impose such limitations on the extent to which mortgage loans originated, held, or serviced by such mortgage bank may be acquired by the Federal Home Mortgage Corporation, the Federal National Mortgage Association, or the Government National Mortgage Association, as the Secretary determines to be appropriate under the circumstances and consistent with the purposes of this section.CommentsClose CommentsPermalink





(6) FAILURE TO CORRECT- If the conditions described in a notice to a mortgage bank under paragraph (3) are not corrected within 180 days after the date of receipt by the mortgage bank of a notice under paragraph (3), the Secretary shall prohibit the Federal Home Mortgage Corporation, the Federal National Mortgage Association, or the Government National Mortgage Association from acquiring any mortgage loan originated, held, or serviced by such mortgage bank.CommentsClose CommentsPermalink





(7) CONSULTATION- In taking any action under this subsection, the Secretary shall consult with all relevant Federal and State regulatory agencies and authorities.CommentsClose CommentsPermalink

SEC. 109. RESPONSIVENESS TO COMMUNITY NEEDS FOR INSURANCE SERVICES.

(a) Affirmative Obligation- The purpose of this section is to recognize that each insurance company has, with respect to each community comprising an assessment area of such company, a continuing and affirmative obligation to meet the need for insurance services in such communities, including the needs of low- and moderate-income neighborhoods and persons of modest means.CommentsClose CommentsPermalink





(b) Definitions- For purposes of this section, the following definitions shall apply:CommentsClose CommentsPermalink





(1) ASSESSMENT AREA- The term ‘assessment area’ means, with respect to an insurance company, each community, including a State, metropolitan areas, and rural counties, in which such company--CommentsClose CommentsPermalink





(A) maintains a retail office or is represented by an agent;CommentsClose CommentsPermalink





(B) has not less than 0.5 percent of the total market in insurance; orCommentsClose CommentsPermalink





(C) the communities constituting assessment areas shall include the communities in which the great majority of policies have been issued.CommentsClose CommentsPermalink





(2) COMMUNITY DEVELOPMENT INVESTMENT- The term ‘community development investment’ means investment in activities that revitalize and stabilize low- and moderate-income neighborhoods and directly benefit low- and moderate-income individuals, including investment in affordable housing, community services, small-business development, and economic development.CommentsClose CommentsPermalink





(3) INSURANCE COMPANY- The term ‘insurance company’ includes any person engaged in the business of insurance to the extent of such activities.CommentsClose CommentsPermalink





(4) SECRETARY- The term ‘Secretary’ means the Secretary of Housing and Urban Development.CommentsClose CommentsPermalink





(c) Program-CommentsClose CommentsPermalink





(1) IN GENERAL- The Secretary, in consultation with the Secretary of the Treasury, shall develop a program to ensure that insurance companies meet the obligations described in subsection (a) and the requirements of the program under this subsection.CommentsClose CommentsPermalink





(2) FACTORS TO BE INCLUDED-CommentsClose CommentsPermalink





(A) CUSTOMER EVALUATION- The program shall include, as appropriate, a method for evaluating an insurance company’s record of helping to meet the insurance needs of its assessment area, including--CommentsClose CommentsPermalink





(i) the number and distribution of customers throughout the community, including minority and low- and moderate-income customers, and the dollar amounts of the insurance policies held by such customers;CommentsClose CommentsPermalink





(ii) the number and distribution of customers residing in minority and low- and moderate-income neighborhoods and the dollar amounts of the insurance policies held by such customers; andCommentsClose CommentsPermalink





(iii) the extent to which the company has adopted innovative and flexible marketing methods and products that facilitate the sale of insurance on a nondiscriminatory basis to minority and low- and moderate-income customers.CommentsClose CommentsPermalink





(B) COMMUNITY DEVELOPMENT INVESTMENTS- The program shall include, as appropriate, a method for evaluating an insurance company’s record of community development investment in each assessment area, including--CommentsClose CommentsPermalink





(i) the number and dollar amount of community development investments in the assessment area; andCommentsClose CommentsPermalink





(ii) the responsiveness of the insurance company, through community development investments, to the credit, capital, and community development needs of the assessment area, including low- and moderate-income neighborhoods.CommentsClose CommentsPermalink





(C) SERVICE PERFORMANCE- The program shall include, as appropriate, a method for evaluating an insurance company’s record of providing access to insurance services in each assessment area, including--CommentsClose CommentsPermalink





(i) the distribution of the insurance company’s retail offices by income level and minority level of census tract and the range of services offered by retail offices across census tracts by income level and minority level;CommentsClose CommentsPermalink





(ii) the company’s record of opening or closing retail offices or affiliating with agents in the assessment area;CommentsClose CommentsPermalink





(iii) the extent to which the insurance company has adopted effective alternate servicing systems in minority and low- and moderate-income neighborhoods, such as providing the means for minority and low- and moderate-income individuals to gain electronic access to the company at workplaces, community centers, and similar locations in minority and low- and moderate-income neighborhoods; andCommentsClose CommentsPermalink





(iv) the extent to which the insurance company has provided insurance education and other insurance services, such as financial counseling classes, in minority and low- and moderate-income neighborhoods in the assessment areas.CommentsClose CommentsPermalink





(3) RATING-CommentsClose CommentsPermalink





(A) IN GENERAL- The program shall provide for--CommentsClose CommentsPermalink





(i) an evaluation and an initial rating of the performance of each insurance company in meeting the obligation established under subsection (a) in each assessment area of the company; andCommentsClose CommentsPermalink





(ii) an overall rating, based on the initial ratings pursuant to clause (i) of the overall achievement of the insurance company in meeting such obligation.CommentsClose CommentsPermalink





(B) RATING CATEGORIES- The rating categories used in rating the performance of any insurance company shall include ‘Outstanding’, ‘High Satisfactory’, ‘Satisfactory’, ‘Low Satisfactory’, ‘Needs-to-Improve’, and ‘Substantial Noncompliance’.CommentsClose CommentsPermalink





(C) TREATMENT OF INSURANCE PRACTICES WITH NEGATIVE IMPACTS- In the case of any insurance company which the Secretary determines has engaged in practices which have a negative impact in any assessment area of the company or has otherwise engaged in any practice or provided any service in a manner which unlawfully discriminates against any person or against any minority or low- or moderate-income neighborhood, the Secretary--CommentsClose CommentsPermalink





(i) may not take any such practice into account in assessing the extent to which such company has met its obligation under subsection (a); andCommentsClose CommentsPermalink





(ii) shall reduce the rating that would otherwise obtain under subparagraph (A) with respect to such company after consideration of the extent of such negative or discriminatory practice or service.CommentsClose CommentsPermalink





(D) MAINTENANCE OF CERTAIN RECORDS- For purposes of determining whether an insurance company engages in any practice or service described in subparagraph (B), the Secretary may require, by regulation, insurance companies to maintain records of the terms and conditions at which insurance products and services were provided by the company and the terms and conditions at which such insurance products or services were offered by the company even though no transaction occurred.CommentsClose CommentsPermalink





(E) IMPROVEMENT PLAN-CommentsClose CommentsPermalink





(i) IN GENERAL- Whenever an insurance company receives a rating of ‘low satisfactory’ or lower in any assessment area, the company shall submit an improvement plan, subject to public notice and comment, to the Secretary.CommentsClose CommentsPermalink





(ii) CONTENTS OF PLAN- Any improvement plan submitted to the Secretary by an insurance company pursuant to clause (i) shall describe how the institution intends to improve its performance in any assessment area where the company received a rating of ‘low satisfactory’ or lower.CommentsClose CommentsPermalink





(iii) REVIEW OF PLAN- The Secretary shall review any improvement submitted under clause (i) by an insurance company and either approve the plan or send it back to the company for revisions.CommentsClose CommentsPermalink





(iv) QUARTERLY REPORTS- After the Secretary approves an improvement plan submitted by an insurance company under clause (i), the company shall submit reports and data on a quarterly basis so that the Secretary and the general public can monitor performance.CommentsClose CommentsPermalink





(v) ADDITIONAL LIMITATIONS- If any insurance company receives a rating of ‘Needs-to-improve’ or ‘Substantial noncompliance’ in any assessment area, the Secretary may not accept or approve any application by such insurance company or any merger applications involving such company until performance improves on a subsequent evaluation.CommentsClose CommentsPermalink





(vi) CONSIDERATION OF PERFORMANCE IN CERTAIN REVIEWS- The Secretary shall consider the progress in meeting the goals described in any improvement plan as an integral factor in reviews of any application by such insurance company or any merger applications involving such company.CommentsClose CommentsPermalink





(d) Consideration of Insurance Company’s Rating-CommentsClose CommentsPermalink





(1) REVIEW OF RATING- At least once in each 2-year period beginning after the date of the enactment of this Act, the Secretary shall--CommentsClose CommentsPermalink





(A) conduct an examination of and assign ratings to each insurance company under this section;CommentsClose CommentsPermalink





(B) provide opportunity for public comment on such rating; andCommentsClose CommentsPermalink





(C) review changes in the community reinvestment performance of such insurance company since the last overall rating and the likely future community reinvestment performance of such insurance company.CommentsClose CommentsPermalink





(2) CONSIDERATION OF INSURANCE COMPANY RATING- Whenever the Secretary considers an application to the agency by an insurance company, the agency shall--CommentsClose CommentsPermalink





(A) take into account the overall rating of the insurance company under this section and any improvement plans submitted pursuant to this section;CommentsClose CommentsPermalink





(B) provide opportunity for public comment on such rating (at least a 30 day public comment period); andCommentsClose CommentsPermalink





(C) take into account changes in the community reinvestment performance of such company since the last overall rating and the likely future community reinvestment performance of such company.CommentsClose CommentsPermalink





(3) NOTIFICATION OF UNSATISFACTORY PERFORMANCE- If, in conjunction with a review pursuant to paragraph (1), the Secretary determines that an insurance company has failed to meet the company’s obligations described in subsection (a) and the requirements of the program under this subsection or failed to make satisfactory improvements in meeting such obligations and requirements, the Secretary shall notify the insurance company and each appropriate State insurance regulator of such determination, describing the conditions giving rise to the notice.CommentsClose CommentsPermalink





(4) AGREEMENT TO CORRECT CONDITIONS REQUIRED- Not later than 45 days after the date of receipt by an insurance company of a notice given under paragraph (3) (or such additional period as the Secretary may permit), the insurance company shall execute an agreement, based on an improvement plan, with the Secretary to comply with the obligations and requirements applicable to the insurance company under this section.CommentsClose CommentsPermalink





(5) SECRETARY MAY IMPOSE LIMITATIONS- Until the conditions described in a notice to an insurance company under paragraph (3) are corrected, the Secretary may impose such limitations on the extent to which mortgage loans secured by real property insured by such insurance company may be acquired by the Federal Home Mortgage Corporation, the Federal National Mortgage Association, or the Government National Mortgage Association, as the Secretary determines to be appropriate under the circumstances and consistent with the purposes of this section.CommentsClose CommentsPermalink





(6) FAILURE TO CORRECT- If the conditions described in a notice to an insurance company under paragraph (3) are not corrected within 180 days after the date of receipt by the insurance company of a notice under paragraph (3), the Secretary shall--CommentsClose CommentsPermalink





(A) prohibit the Federal Home Mortgage Corporation, the Federal National Mortgage Association, and the Government National Mortgage Association from acquiring any mortgage loan secured by real property insured by such insurance company;CommentsClose CommentsPermalink





(B) publish notice of such failure to correct in the Federal Register; andCommentsClose CommentsPermalink





(C) notify each appropriate State insurance regulator of such failure to correct.CommentsClose CommentsPermalink





(7) CONSULTATION- In taking any action under this subsection, the Secretary shall consult with all relevant Federal and State regulatory agencies and authorities.CommentsClose CommentsPermalink





(e) Health and Life Insurance Lines Not Included- This section and section 110 shall not apply to life or health lines of insurance or to insurance companies that provide only life or health insurance products.CommentsClose CommentsPermalink

SEC. 110. SATISFACTORY RATINGS REQUIRED BY SECURITIES COMPANY, MORTGAGE BANK, AND INSURANCE COMPANY AFFILIATES OF FINANCIAL HOLDING COMPANIES.

(a) In General- Section 4(l)(1) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(l)(1)) is amended--CommentsClose CommentsPermalink





(1) by striking ‘and’ at the end of subparagraph (B);CommentsClose CommentsPermalink





(2) by redesignating subparagraph (C) as subparagraph (F); andCommentsClose CommentsPermalink





(3) by inserting after subparagraph (B) the following new subparagraphs:CommentsClose CommentsPermalink





‘(C) all of the securities company affiliates of the bank holding company have a satisfactory rating of meeting community needs under section 107 of the Community Reinvestment Modernization Act of 2009;CommentsClose CommentsPermalink





‘(D) all of the mortgage bank affiliates of the bank holding company have a satisfactory rating of meeting community needs under section 108 of the Community Reinvestment Modernization Act of 2009;CommentsClose CommentsPermalink





‘(E) all of the insurance company affiliates of the bank holding company have a satisfactory rating of meeting community needs under section 109 of the Community Reinvestment Modernization Act of 2009; and’.CommentsClose CommentsPermalink





(b) Technical and Conforming Amendments-CommentsClose CommentsPermalink





(1) Section 5(a) of the Bank Holding Company Act of 1956 (12 U.S.C. 1844(a)) is amended by striking ‘section 4(l)(1)(C)’ and inserting ‘section 4(l)(1)(F)’.CommentsClose CommentsPermalink





(2) Section 8(c)(3)(A) of the International Banking Act of 1978 (12 U.S.C. 3106(c)(3)(A)) is amended by striking ‘section 4(l)(1)(C)’ and inserting ‘section 4(l)(1)(F)’.CommentsClose CommentsPermalink

SEC. 111. RESPONSIVENESS TO COMMUNITY NEEDS BY CREDIT UNIONS.

Title II of the Federal Credit Union Act (12 U.S.C. 1781 et seq.) is amended by adding at the end the following new section:CommentsClose CommentsPermalink

‘SEC. 217. AFFIRMATIVE OBLIGATION TO MEET THE CREDIT NEEDS OF THE COMMUNITY.

‘(a) Continuing and Affirmative Obligation- The purpose of this section is to reaffirm that covered credit unions have a continuing and affirmative obligation to meet the needs of its assessment area, including minority and low- and moderate-income neighborhoods, consistent with safe and sound operation.CommentsClose CommentsPermalink





‘(b) Definitions- For purposes of this section the following definitions shall apply:CommentsClose CommentsPermalink





‘(1) ASSESSMENT AREA- The term ‘assessment area’ means an area delineated by a covered credit union consistent with the requirements described in subsection (d).CommentsClose CommentsPermalink





‘(2) COVERED CREDIT UNION- The term ‘covered credit union’--CommentsClose CommentsPermalink





‘(A) means an insured credit union (as defined in section 101); andCommentsClose CommentsPermalink





‘(B) does not include a credit union designated by the Board as a low-income credit union for purposes of the Community Development Credit Union Revolving Loan Fund Transfer Act.CommentsClose CommentsPermalink





‘(3) FEDERAL BANKING AGENCIES- The term ‘Federal banking agencies’ has the same meaning as in section 3 of the Federal Deposit Insurance Act.CommentsClose CommentsPermalink





‘(4) LOW-INCOME AND MODERATE-INCOME- The term ‘low-income and moderate-income’ shall be defined by the Board, by regulation, consistent with the definition of such terms in regulations prescribed by the Federal banking agencies to implement the Community Reinvestment Act of 1977.CommentsClose CommentsPermalink





‘(5) CRA IMPROVEMENT PLAN- The term ‘CRA improvement plan’ means a plan of a covered credit union to improve its performance in meeting the credit needs, including minority and low- and moderate-income neighborhoods, in the service areas where the credit union received a rating of ‘low satisfactory’ or lower.CommentsClose CommentsPermalink





‘(c) Assessment of Record of Meeting Community Credit Needs-CommentsClose CommentsPermalink





‘(1) REGULATIONS- The Board shall prescribe regulations for evaluating not less than once every two years a covered credit union’s record of meeting its obligations described in subsection (a).CommentsClose CommentsPermalink





‘(2) PERFORMANCE TESTS- The regulations prescribed under paragraph (1) shallCommentsClose CommentsPermalink





‘(A) include performance criteria for lending, investment, services tests, and other tests substantially similar to such tests established in regulations prescribed by the Federal banking agencies to implement the Community Reinvestment Act of 1977; andCommentsClose CommentsPermalink





‘(B) ensure that the criteria established pursuant to subparagraph (A) include an assessment of the covered credit union’s home mortgage, small business, and consumer lending activities, including to low- and moderate-income individuals.CommentsClose CommentsPermalink





‘(3) ASSESSMENT INFORMATION- In addition to the criteria prescribed under paragraph (2), the Board’s evaluation of a covered credit union shall include consideration, for purposes of subsections (a) and (f), of--CommentsClose CommentsPermalink





‘(A) any information about lending, investment, and service opportunities maintained by the covered credit union or obtained from community organizations, state, local, and tribunal governments, economic development agencies, or other sources;CommentsClose CommentsPermalink





‘(B) a covered credit union’s investment in community development financial institutions pursuant to the Community Development Banking and Financial Institutions Act of 1994;CommentsClose CommentsPermalink





‘(C) a covered credit union’s lending and investment activities that revitalize and stabilize minority or low- and moderate-income neighborhoods, or directly benefit minority or low- and moderate-income individuals, including financing and investment in affordable housing, community services, and economic development;CommentsClose CommentsPermalink





‘(D) a covered credit union‘s lending activity in its assessment area in comparison to the credit union’s total lending activity and such relative percentage shall be taken into consideration for purposes of the credit union’s lending test under paragraph (2)(A);CommentsClose CommentsPermalink





‘(E) the covered credit union’s performance in comparison to similarly situated lenders, including banks, savings associations and credit unions, based on information contained in such lenders’ public file, data collected pursuant to the Home Mortgage Disclosure Act, and any other publicly available information that may assist the Board in a meaningful comparison; andCommentsClose CommentsPermalink





‘(F) any written comments about the covered credit union’s record of performance under this section submitted to the credit union or to the Board.CommentsClose CommentsPermalink





‘(4) MEETING OBLIGATIONS- A single common-bond credit union with fewer than 3,000 members in which the common-bond is not based on employment in a trade, industry, or profession shall be considered to have met its obligation under subsection (a).CommentsClose CommentsPermalink





‘(d) Assessment Area-CommentsClose CommentsPermalink





‘(1) CRITERIA FOR DELINEATING- The Board shall, by regulation, prescribe criteria for a covered credit union to use in delineating 1 or more assessment areas.CommentsClose CommentsPermalink





‘(2) CRITERIA FOR REGULATIONS- Regulations prescribed pursuant to paragraph (1) shall--CommentsClose CommentsPermalink





‘(A) be consistent with regulations prescribed by the Federal banking agencies under the Community Reinvestment Act of 1977;CommentsClose CommentsPermalink





‘(B) take into consideration, as appropriate, the differences between common-bond and community credit unions to the extent that such differences affect a covered credit union’s delineation of an assessment area;CommentsClose CommentsPermalink





‘(C) ensure that the assessment area includes areas in which a covered credit union includes membership permitted by section 109(c)(2);CommentsClose CommentsPermalink





‘(D) provide for consideration of a covered credit union’s shared branch;CommentsClose CommentsPermalink





‘(E) provide that if the covered credit union’s field of membership is based on a common-bond other than geography the credit union may delineate such field of membership as its assessment area; andCommentsClose CommentsPermalink





‘(F) provide that the delineation of a covered credit union’s assessment area may include a combination of geographic boundaries and field of membership, such as a covered credit union that includes membership permitted by section 109(c)(2).CommentsClose CommentsPermalink





‘(3) FACILITATING COMPLIANCE- The Board shall ensure that any assessment area of a covered credit union is delineated in a manner that--CommentsClose CommentsPermalink





‘(A) does not permit the covered credit union to evade its obligations under this section; andCommentsClose CommentsPermalink





‘(B) reflects the spirit and intent of this section.CommentsClose CommentsPermalink





‘(4) PROHIBITIONS- A covered credit union’s assessment area shall not--CommentsClose CommentsPermalink





‘(A) reflect illegal discrimination; orCommentsClose CommentsPermalink





‘(B) exclude minority or low- or moderate-income segments of, or communities in, the covered credit union’s field of membership.CommentsClose CommentsPermalink





‘(e) Written Evaluations- Upon the conclusion of each examination of a covered credit union the Board shall prepare a written evaluation of the credit union’s record of meeting the credit needs of its entire community, including minority and low- and moderate-income neighborhoods.CommentsClose CommentsPermalink





‘(1) PUBLIC SECTION- Each written evaluation required by this subsection shall have a public section.CommentsClose CommentsPermalink





‘(2) PUBLIC SECTION- The public section of the written evaluation shall--CommentsClose CommentsPermalink





‘(A) state the conclusion for each performance test identified in the regulations prescribed pursuant to subsection (c);CommentsClose CommentsPermalink





‘(B) discuss the facts and data supporting such conclusions; andCommentsClose CommentsPermalink





‘(C) contain the credit union’s rating and an explanation describing the basis for the rating.CommentsClose CommentsPermalink





‘(3) RATINGS- The covered credit union’s rating referred to in paragraph (2)(C) shall be one of the following:CommentsClose CommentsPermalink





‘(A) Outstanding record of meeting community needs.CommentsClose CommentsPermalink





‘(B) High Satisfactory record of meeting community needs.CommentsClose CommentsPermalink





‘(C) Satisfactory record of meeting community needs.CommentsClose CommentsPermalink





‘(D) Low Satisfactory record of meeting community needs.CommentsClose CommentsPermalink





‘(E) Needs to improve record of meeting community needs.CommentsClose CommentsPermalink





‘(F) Substantial noncompliance in meeting community needs.CommentsClose CommentsPermalink





‘(f) Initial Separate Evaluation and Rating for State, Metropolitan, Other Service Areas Required- The information required by this act with respect to any credit union shall be presented separately, and an initial rating shall be determined separately, for--CommentsClose CommentsPermalink





‘(1) each metropolitan area in which the credit union maintains 1 or more domestic branches;CommentsClose CommentsPermalink





‘(2) each State in which the credit union maintains 1 or more domestic branches outside of a metropolitan area;CommentsClose CommentsPermalink





‘(3) each community in which the credit union makes more than 0.5 percent of the total amount of loans; andCommentsClose CommentsPermalink





‘(4) the communities and assessment areas rated by the evaluation shall include the communities and assessment areas in which the great majority of loans have been issued.CommentsClose CommentsPermalink





‘(g) Effect of Performance on Applications- The Board shall provide a 30-day public comment period on applications submitted by credit unions. The Board shall take into account a covered credit union’s performance, or expected performance in connection with a new charter, under this section when considering--CommentsClose CommentsPermalink





‘(1) an application for the credit union to--CommentsClose CommentsPermalink





‘(A) convert to an insured Federal credit union;CommentsClose CommentsPermalink





‘(B) convert to an insured State credit union; orCommentsClose CommentsPermalink





‘(C) convert to a new field of membership charter;CommentsClose CommentsPermalink





‘(2) an application by a covered credit union to alter or expand its field of membership;CommentsClose CommentsPermalink





‘(3) a merger with another credit union; andCommentsClose CommentsPermalink





‘(4) an application to establish or relocate a branch.CommentsClose CommentsPermalink





‘(h) CRA Improvement Plan-CommentsClose CommentsPermalink





‘(1) IN GENERAL- Whenever a credit union 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 credit union shall submit a CRA improvement plan, subject to public notice and comment, to the appropriate Federal financial supervisory agency.CommentsClose CommentsPermalink





‘(2) CONTENTS OF PLAN- Any CRA improvement plan submitted to the Board by the credit union pursuant to paragraph (1) shall describe how the institution intends to improve its performance in meeting the credit needs, including minority and low- and moderate-income neighborhoods, in the service areas where the institution received a rating of ‘low satisfactory’ or lower.CommentsClose CommentsPermalink





‘(3) REVIEW OF PLAN- The Board which receives a CRA improvement plan under paragraph (1) from a credit union shall review the plan and either approve the plan or send it back to the credit union for revisions.CommentsClose CommentsPermalink





‘(4) QUARTERLY REPORTS- After the Board receives a CRA improvement plan under paragraph (1) from a credit union approves the plan, the credit union shall submit reports and data to the agency on a quarterly basis so that the regulatory agency and the general public can monitor to the performance of the credit union in meeting the credit needs, including minority and low- and moderate-income neighborhoods, in the service areas where the institution received a rating of ‘low satisfactory’ or lower.CommentsClose CommentsPermalink





‘(5) ADDITIONAL LIMITATIONS- If any credit union receives a rating of ‘Needs-to-improve’ or ‘Substantial noncompliance’ in any assessment area, the Board may not accept or approve any application by such institution or any merger applications involving such institution until performance improves on a subsequent evaluation.CommentsClose CommentsPermalink





‘(6) CONSIDERATION OF PERFORMANCE IN CERTAIN REVIEWS- The Board shall consider the progress of the institution in meeting the goals described in any CRA improvement plan as an integral factor in reviews of any application by such institution or any merger applications involving such institution.CommentsClose CommentsPermalink





‘(i) Reporting and Publication-CommentsClose CommentsPermalink





‘(1) ANNUAL REPORTS- The Board shall include in its annual report to the Congress under section 102(d) a description of actions the Board has taken to carry out its responsibilities under this section.CommentsClose CommentsPermalink





‘(2) PUBLICATION OF EXAM SCHEDULE- The Board shall publish at least 30 days in advance of the beginning of each calendar quarter a list of covered credit unions scheduled for examinations required by this section in that quarter.CommentsClose CommentsPermalink





‘(j) Report on Implementation-CommentsClose CommentsPermalink





‘(1) REPORT TO THE CONGRESS- Within 90 days of final issuance of the regulations required under this section, the Board shall report to the Congress on--CommentsClose CommentsPermalink





‘(A) the implementation of the regulations required under this section;CommentsClose CommentsPermalink





‘(B) reasons for instances where the Board’s regulations deviate from regulations prescribed by the Federal banking agencies pursuant to the Community Reinvestment Act of 1977; andCommentsClose CommentsPermalink





‘(C) the manner in which the Board will measure whether a covered credit union is meeting the credit needs of individuals located in an underserved area, including low-income individuals in such underserved area.CommentsClose CommentsPermalink





‘(2) GENERAL ACCOUNTING OFFICE STUDY- Before the end of the three-year period beginning on the date of final issuance of regulations required under this section, the Comptroller General of the United States shall--CommentsClose CommentsPermalink





‘(A) conduct a study detailing the effectiveness of the Board’s implementation of this act; andCommentsClose CommentsPermalink





‘(B) submit a report containing the findings and conclusions of the Comptroller General in connection with the study required by subparagraph (A), together with recommendations the Comptroller General may determine are necessary to improve the Board’s regulations to serve the spirit and intent of this act.’.CommentsClose CommentsPermalink

TITLE II--DATA DISCLOSURE REQUIREMENTSCommentsClose CommentsPermalink

Subtitle A--Disclosure of Insurance Availability and Insurer Investment InformationCommentsClose CommentsPermalink

SEC. 201. SHORT TITLE.

This title may be cited as the ‘Insurance Disclosure Act’.CommentsClose CommentsPermalink

SEC. 202. ESTABLISHMENT OF GENERAL REQUIREMENTS TO SUBMIT INFORMATION.

(a) In General- The Secretary of Housing and Urban Development shall, by regulation, establish requirements for insurers to compile and submit information to the Secretary for each annual reporting period, in accordance with this title.CommentsClose CommentsPermalink





(b) Consultation- In establishing the requirements for the submission of information under this title, the Secretary shall consult with Federal agencies having appropriate expertise, the National Association of Insurance Commissioners, State insurance regulators, statistical agents, representatives of small businesses, representatives of insurance agents (including minority insurance agents), representatives of property and casualty insurers, and community, consumer, and civil rights organizations, as appropriate.CommentsClose CommentsPermalink





(c) Health and Life Insurance Lines Not Included- This title shall not apply to life or health lines of insurance or to insurers that provide only life or health insurance products.CommentsClose CommentsPermalink

SEC. 203. REPORTING OF NONCOMMERCIAL INSURANCE INFORMATION.

(a) In General- The requirements established pursuant to section 202 to carry out this section shall--CommentsClose CommentsPermalink





(1) be designed to ensure that information is submitted and compiled under this section as may be necessary to permit analysis and comparison of--CommentsClose CommentsPermalink





(A) the availability and affordability of insurance coverage and the quality or type of insurance coverage, by census tract, including minority and low- and moderate-income neighborhoods, and the race and gender of policyholders; andCommentsClose CommentsPermalink





(B) the location of the principal place of business of insurance agents, and the location of the principal place of business of insurance agents terminated, by census tract, including minority and low- and moderate-income neighborhoods; andCommentsClose CommentsPermalink





(2) specify the data elements required to be reported under this section and require uniformity in the definitions of the data elements.CommentsClose CommentsPermalink





(b) Insurers-CommentsClose CommentsPermalink





(1) AGGREGATE INFORMATION- The regulations issued under section 202 shall require that each insurer for a designated line of insurance under subparagraph (A) or (B) of section 210(a)(1) shall compile and submit to the Secretary, for each annual reporting period--CommentsClose CommentsPermalink





(A) the total number of policies issued in such line, total exposures covered by such policies, and total amount of premiums for such policies, by designated line and by census tract, including minority and low- and moderate-income neighborhoods, in which the insured risk is located;CommentsClose CommentsPermalink





(B) the total number of cancellations and nonrenewals (expressed in terms of policies or exposures, as determined by the Secretary), by designated line and by census tract, including minority and low- and moderate-income neighborhoods, in which the insured risk is located;CommentsClose CommentsPermalink





(C) the total number of--CommentsClose CommentsPermalink





(i) licensed agents of such insurer selling insurance in the designated line, by census tract, including minority and low- and moderate-income neighborhoods, in which the agent’s principal place of business is located; andCommentsClose CommentsPermalink





(ii) such agents who were terminated by the insurer, by census tract in which the agent’s principal place of business was located; andCommentsClose CommentsPermalink





(D) for such designated line of insurance, information that will enable the Secretary to assess the aggregate loss experience for the insurer, by census tract, including minority and low- and moderate-income neighborhoods, in which the insured risk is located.CommentsClose CommentsPermalink





(2) SPECIFICATION OF INFORMATION FOR ITEMIZED DISCLOSURE-CommentsClose CommentsPermalink





(A) IN GENERAL- The regulations issued under section 202 regarding annual reporting requirements for insurers for a designated line of insurance under subparagraph (A) or (B) of section 210(a)(1) shall, with respect to policies issued under the designated line or exposure units covered by such policies, as determined by the Secretary--CommentsClose CommentsPermalink





(i) specify the data elements that shall be submitted;CommentsClose CommentsPermalink





(ii) provide for the submission of information on an individual insurer basis;CommentsClose CommentsPermalink





(iii) provide for the submission of the information with the least burden on insurers, particularly small insurers, and insurance agents;CommentsClose CommentsPermalink





(iv) take into account existing statistical reporting systems in the insurance industry;CommentsClose CommentsPermalink





(v) require reporting by census tract, including minority and low- and moderate-income neighborhoods, in which the insured risk is located;CommentsClose CommentsPermalink





(vi) provide for the submission of information that--CommentsClose CommentsPermalink





(I) identifies the designated line, and subline or coverage type; andCommentsClose CommentsPermalink





(II) where applicable, distinguishes between the type of policy under each such subline or coverage type that provides full replacement cost and all other bases for computing claims, such as actual cash value and fair market value;CommentsClose CommentsPermalink





(vii) provide for the submission of information that distinguishes policies written in a residual market from policies written in the voluntary market;CommentsClose CommentsPermalink





(viii) specify--CommentsClose CommentsPermalink





(I) whether information shall be submitted on the basis of policy or exposure unit; andCommentsClose CommentsPermalink





(II) whether information, when submitted, shall be aggregated by like policyholders with like policies, except that the Secretary shall not permit such aggregation if it will adversely affect the accuracy of the information reported;CommentsClose CommentsPermalink





(ix) in addition to reporting approvals, provide for the submission of information regarding the number of denials, cancellations, and nonrenewals of policies under the designated line by census tract in which the insured risk is located, by race, gender, and income of the policyholder, and by whether the policy was issued in a voluntary or residual market; andCommentsClose CommentsPermalink





(x) provide for the submission of information on the racial characteristics, gender, and income levels of policyholders at the level of detail comparable to that required by the Home Mortgage Disclosure Act of 1975 (and the regulations issued thereunder).CommentsClose CommentsPermalink





(B) RULES REGARDING OBTAINING RACIAL INFORMATION-CommentsClose CommentsPermalink





(i) WRITING REQUIREMENT- The information specified in subparagraph (A)(x) relating to the racial characteristics of applicants for, and policyholders of, insurance shall be obtained only in accordance with the procedures for requesting and recording racial information established in Regulation C of the Board of Governors of the Federal Reserve System under the Home Mortgage Disclosure Act of 1975, as in effect on the date of the enactment of this Act.CommentsClose CommentsPermalink





(ii) NOTICE OF VOLUNTARY NATURE OF QUESTION- Any such written question shall clearly indicate that a response to the question is voluntary on the part of the applicant or policyholder, but encouraged, and that the information is being requested by the Federal Government to monitor the availability and affordability of insurance.CommentsClose CommentsPermalink





(iii) PROVISION OF INFORMATION BY AGENT OR INSURER- If an applicant for, or policyholder of, insurance declines to provide such information, the agent or insurer for such insurance may provide such information.CommentsClose CommentsPermalink





(3) RULE FOR REPORTING BY INSURERS- An insurer for a designated line shall submit--CommentsClose CommentsPermalink





(A) information required under subparagraphs (A), (B), and (D) of paragraph (1) and information required pursuant to paragraph (2), for risks insured under such line that are located within each census tract any part of which is located in a State for which the insurer is offering the designated line; andCommentsClose CommentsPermalink





(B) information required under paragraph (1)(C) for agents within such census tracts.CommentsClose CommentsPermalink

SEC. 204. REPORTING OF RURAL INSURANCE INFORMATION.

(a) In General- The Secretary shall, by regulation, establish requirements for insurers to annually compile and submit to the Secretary information concerning the availability, affordability, and quality or type of insurance in rural areas and to small businesses.CommentsClose CommentsPermalink





(b) Content- The regulations under this section shall provide that the information compiled and submitted under this section shall be compiled and submitted on the basis of each census tract in which the insured risks are located.CommentsClose CommentsPermalink

SEC. 205. WAIVER OF REPORTING REQUIREMENTS.

(a) Waiver for States Collecting Equivalent Information-CommentsClose CommentsPermalink





(1) AUTHORITY- Subject to the requirements under this section, the Secretary shall provide, by regulation, for the waiver of the applicability of the provisions of sections 203 and 204 for each insurer transacting business within a State referred to in paragraph (2) of this subsection, but only with respect to information required to be submitted under such sections that relates to agents or insured risks located in the State.CommentsClose CommentsPermalink





(2) REQUIREMENTS- The Secretary may make a waiver pursuant to paragraph (1) only with respect to a State that the Secretary determines has in effect a law or other requirement that--CommentsClose CommentsPermalink





(A) requires insurers to submit to the State information that is at least the same or equivalent to the information that is required to be submitted to the Secretary pursuant to sections 203 and 204;CommentsClose CommentsPermalink





(B) provides for adequate enforcement of such law or other requirements; andCommentsClose CommentsPermalink





(C) provides for the same annual reporting period used by the Secretary under this title and for submission of the information to the Secretary in a timely fashion, as determined by the Secretary.CommentsClose CommentsPermalink





(3) DURATION- A waiver pursuant to paragraph (1) may remain in effect only during the period for which the State law or other requirement required under paragraph (2) remains in effect.CommentsClose CommentsPermalink





(b) Multiple-State Areas- In the case of any census tract that contains area within (1) any State for which a waiver has been made pursuant to subsection (a), and (2) any State for which such a waiver has not been made, the provisions of this title requiring submission of information to the Secretary regarding such tract or area shall be considered to apply only to the portion that is located within the State for which such a waiver has not been made.CommentsClose CommentsPermalink





(c) Authority for Secretary To Obtain Information Directly From Insurers- If the State for which a waiver has been made pursuant to subsection (a) does not submit to the Secretary the information required under subsection (a)(2)(A) or submits information that is not complete, the Secretary shall require the insurers transacting business within the State to submit such information directly to the Secretary.CommentsClose CommentsPermalink

SEC. 206. REPORTING BY PRIVATE MORTGAGE INSURERS.

(a) HMDA Reporting- On an annual basis, the Financial Institutions Examination Council shall determine the extent to which each insurer providing private mortgage insurance is making available to the public and submitting to the appropriate agency information regarding such insurance that is equivalent to the information regarding mortgages required to be reported under the Home Mortgage Disclosure Act of 1975.CommentsClose CommentsPermalink





(b) Reporting Under This Title-CommentsClose CommentsPermalink





(1) CERTIFICATION OF NONCOMPLIANCE- If, for any annual period referred to in subsection (a), such Council determines that any insurer providing private mortgage insurance is not making available to the public or submitting the information referred to in subsection (a) or that the information made available or submitted is not equivalent information as described in subsection (a), then the Council shall notify the insurer of such noncompliance. If, after the expiration of a reasonable period of time, the insurer has not remedied such noncompliance to the satisfaction of the Council, then the Council shall immediately certify such noncompliance to the Secretary.CommentsClose CommentsPermalink





(2) REQUIREMENT- Upon the receipt of a certification under paragraph (1), the Secretary shall, by order, require such insurer to submit to the Secretary information regarding such insurance that complies with the provisions of section 206 that are applicable to such insurance.CommentsClose CommentsPermalink

SEC. 207. REPORTING OF INFORMATION REGARDING INVESTMENTS BY INSURERS.

(a) In General- The Secretary of Housing and Urban Development shall, by regulation, require that each insurer that makes an investment in a property or business or extends credit shall compile and submit to the Secretary for each annual reporting period, the following information:CommentsClose CommentsPermalink





(1) DIRECT LOANS-CommentsClose CommentsPermalink





(A) COMMERCIAL REAL ESTATE LOANS- The total number of loans for the purchase of commercial real estate made by the insurer, the aggregate amount of such loans, and the amount of each such loan, by census tract, including minority and low- and moderate-income neighborhoods, in which the real estate for which the loan was made is located.CommentsClose CommentsPermalink





(B) SINGLE-FAMILY MORTGAGES- The total number of mortgage loans for the purchase of 1- to 4-family dwellings made by the insurer, the aggregate amount of such loans, and the amount of each such loan, by census tract, including minority and low- and moderate-income neighborhoods, in which the dwelling for which the loan was made is located, which information shall be disaggregated by racial characteristics, income level, and gender of the borrower under the loan.CommentsClose CommentsPermalink





(C) COMMERCIAL AND INDUSTRIAL LOANS- The total number of commercial and industrial loans made by the insurer, the aggregate amount of such loans, and the amount of each such loan, by census tract, including minority and low- and moderate-income neighborhoods, in which the property or business involved in the loan is located, which information shall be disaggregated by the size of business of the borrower under the loan and by the ownership characteristic of the business, which shall be classified as either minority-owned, women-owned, or otherwise-owned.CommentsClose CommentsPermalink





(2) LOAN PURCHASES-CommentsClose CommentsPermalink





(A) COMMERCIAL REAL ESTATE LOANS- The total number of loans for the purchase of commercial real estate purchased by the insurer, the aggregate amount of such loans, and the amount of each such loan, by census tract, including minority and low- and moderate-income neighborhoods, in which the real estate for which the loan was made is located.CommentsClose CommentsPermalink





(B) SINGLE-FAMILY MORTGAGES- The total number of mortgage loans for the purchase of 1- to 4-family dwellings purchased by the insurer, the aggregate amount of such loans, and the amount of each such loan, by census tract, including minority and low- and moderate-income neighborhoods, in which the dwelling for which the loan was made is located, which information shall be disaggregated by racial characteristics, income level, and gender of the borrower under the loan.CommentsClose CommentsPermalink





(C) COMMERCIAL AND INDUSTRIAL LOANS- The total number of commercial and industrial loans purchased by the insurer, the aggregate amount of such loans, and the amount of each such loan, by census tract, including low- and moderate-income neighborhoods, in which the property or business involved in the loan is located, which information shall be disaggregated by the size of business of the borrower under the loan and by the ownership characteristic of the business, which shall be classified as either minority-owned, women-owned, or otherwise-owned.CommentsClose CommentsPermalink





(3) OTHER INVESTMENTS- For such other investments made by the insurer as the Secretary may designate pursuant to subsection (b), the total number of such investments, the aggregate amount of such investments, and the amount of each such investment, by census tract, including minority and low- and moderate-income neighborhoods, in which the property or business involved in the investment is located, as determined by the Secretary, which information shall be disaggregated by the size of business of the borrower under the loan and by the ownership characteristic of the business, which shall be classified as either minority-owned, women-owned, or otherwise-owned.CommentsClose CommentsPermalink





(b) Designation of Other Investments-CommentsClose CommentsPermalink





(1) IN GENERAL- For purposes of subsection (a)(3), the Secretary may designate activities and investments other than the investments described in paragraphs (1) and (2) of subsection (a) for which insurers shall compile and submit information under this section.CommentsClose CommentsPermalink





(2) REQUIREMENT- In making designations under this subsection, the Secretary shall designate (A) activities and investments that significantly benefit minority and low- and moderate-income families and persons, small businesses in distressed communities, or minority- or women-owned businesses, and (B) activities and investments that contribute to the creation of jobs and economic development of distressed communities.CommentsClose CommentsPermalink





(3) CONSIDERATIONS- The Secretary shall specifically consider for designation under this subsection investments in community development financial institutions, community development corporations, State-issued bonds, and securities backed by State development funds.CommentsClose CommentsPermalink





(c) Size of Business- The Secretary shall, by regulation, establish various categories of the sizes of businesses, for purposes of disaggregating information under paragraphs (1)(C), (2)(C), and (3) of subsection (a) by various sizes of businesses.CommentsClose CommentsPermalink

SEC. 208. SUBMISSION OF INFORMATION TO SECRETARY AND MAINTENANCE OF INFORMATION.

(a) Period of Maintenance- Each insurer required by this title to compile and submit information to the Secretary shall maintain such information for the 3-year period beginning upon the conclusion of the annual reporting period to which such information relates. The Secretary shall maintain any information submitted to the Secretary for such period as the Secretary considers appropriate and feasible to carry out the purposes of this title and to allow for historical analysis and comparison of the information.CommentsClose CommentsPermalink





(b) Submission- The Secretary shall issue regulations prescribing a standard schedule (taking into consideration the provisions of section 209(a)), format, and method for submitting information under this title to the Secretary. The format and method of submitting the information shall facilitate and encourage the submission in a form readable by a computer. Any insurer submitting information to the Secretary may submit in writing to the Secretary any additional information or explanations that the insurer considers relevant to the decision by the insurer to sell insurance.CommentsClose CommentsPermalink

SEC. 209. AVAILABILITY AND ACCESS SYSTEM.

(a) Availability to Public-CommentsClose CommentsPermalink





(1) IN GENERAL- The Secretary shall maintain and make available to the public, in accordance with the requirements of this section, any information submitted to the Secretary under this title and any information compiled by the Secretary under this title.CommentsClose CommentsPermalink





(2) TIMING- The Secretary shall make such information publicly available on a timetable determined by the Secretary, but not later than 9 months after the conclusion of the annual reporting period to which the information relates.CommentsClose CommentsPermalink





(b) Public Access System-CommentsClose CommentsPermalink





(1) IMPLEMENTATION- The Secretary shall implement a system to facilitate access to any information required to be made available to the public under this title.CommentsClose CommentsPermalink





(2) BASES OF AVAILABILITY- The system shall provide access in the following manners:CommentsClose CommentsPermalink





(A) ACCESS TO ITEMIZED INFORMATION- With respect to information submitted under by insurers, on the basis of the insurer submitting the information, on the basis of the census tract, including minority and low- and moderate-income neighborhoods, and on any other basis the Secretary considers feasible and appropriate.CommentsClose CommentsPermalink





(B) ACCESS TO AGGREGATE INFORMATION- With respect to aggregate information compiled by the Secretary, on the basis of (i) the insurer submitting the information, and (ii) the census tract, including minority and low- and moderate-income neighborhoods, and on any other basis the Secretary considers feasible and appropriate.CommentsClose CommentsPermalink





(c) Protections Regarding Loss Information-CommentsClose CommentsPermalink





(1) PROHIBITION OF DISCLOSURE OF LOSS INFORMATION- Notwithstanding any other provision of this title, the Secretary may not make available to the public or otherwise disclose any information submitted under this title regarding the amount or number of claims paid by any insurer, the amount of losses of any insurer, or the loss experience for any insurer, except in the form of a loss ratio (expressing the relationship of claims paid to premiums) for the industry aggregate on a census tract level.CommentsClose CommentsPermalink





(2) PROTECTION OF IDENTITY OF INSURER- In making available to the public or otherwise disclosing a loss ratio for an insurer--CommentsClose CommentsPermalink





(A) the Secretary may not identify the insurer to which the loss ratio relates; andCommentsClose CommentsPermalink





(B) the Secretary may disclose the loss ratio only in a manner that does not allow any party to determine the identity of the specific insurer to which the loss ratio relates, except parties having access to information under paragraph (3).CommentsClose CommentsPermalink





(3) CONFIDENTIALITY OF INFORMATION DISCLOSED TO GOVERNMENTAL AGENCIES- The Secretary may make information referred to in paragraph (1) and the identity of the specific insurer to which such information relates available to any Federal entity and any State agency responsible for regulating insurance in a State and may otherwise disclose such information to any such entity or agency, but only to the extent such entity or agency agrees not to make any such information available or disclose such information to any other person.CommentsClose CommentsPermalink

SEC. 210. DESIGNATIONS.

(a) Designation of Lines of Insurance-CommentsClose CommentsPermalink





(1) IN GENERAL- The Secretary shall, by regulation, designate lines of insurance as designated lines for purposes of this title, as follows:CommentsClose CommentsPermalink





(A) AUTOMOBILE- The Secretary shall designate private passenger automobile insurance and shall also designate any sublines and coverage types of private passenger automobile insurance that the Secretary considers appropriate to determine and compare the availability, affordability, and type of coverage in such line among applicable regions.CommentsClose CommentsPermalink





(B) NONCOMMERCIAL INSURANCE FOR RESIDENTIAL PROPERTY- The Secretary shall designate homeowners insurance and dwelling fire and allied lines, and shall distinguish the coverage types in such lines by the perils covered and by market or replacement value. For purposes of this title, homeowners insurance shall include any renters coverage or coverage for the personal property of a condominium ownerCommentsClose CommentsPermalink





(2) REPORT- At any time the Secretary determines that any line of insurance not described in paragraph (1) should be a designated line because disparities in coverage provided under such line exist among geographic areas having different income levels or racial composition, the Secretary shall submit a report recommending designating such line of insurance as a designated line for purposes of this title to the Committee on Financial Services of the House of Representatives and the appropriate Committees of the Senate.CommentsClose CommentsPermalink





(3) DURATION-CommentsClose CommentsPermalink





(A) IN GENERAL- Except as provided in subparagraph (B), the Secretary shall make the designations under this subsection once every 5 years, by regulation, and each line and subline or coverage type designated under such regulations shall be designated for each of the first 5 successive annual reporting periods occurring after issuance of the regulations.CommentsClose CommentsPermalink





(B) ALTERATION- During any 5-year period referred to in subparagraph (A) in which designations are in effect, the Secretary may amend or revise the designated lines, sublines, and coverage types only by regulation and only in accordance with the requirements of this subsection. Such regulations amending or revising designations shall apply only to annual reporting periods beginning after the expiration of the 6-month period beginning on the date of issuance of the regulations.CommentsClose CommentsPermalink





(b) Timing of Designations- The Secretary shall make the designations required by subsection (a)(3)(A) and notify interested parties during the 6-month period ending 6 months before the commencement of the first annual reporting period to which such designations apply.CommentsClose CommentsPermalink





(c) Obtaining Information- The Secretary may require insurers to submit to the Secretary such information as the Secretary considers necessary to make designations specifically required under this title. The Secretary may not require insurers to submit any information under this subsection that relates to any line of insurance not specifically authorized to be designated pursuant to this title or that is to be used solely for the purpose of a report under subsection (a)(2).CommentsClose CommentsPermalink

SEC. 211. ENFORCEMENT.

(a) Civil Penalties- Any insurer who is determined by the Secretary, after providing opportunity for a hearing on the record, to have violated any requirement pursuant to this title shall be subject to a civil penalty of not to exceed $5,000 for each day during which such violation continues.CommentsClose CommentsPermalink





(b) Injunction- The Secretary may bring an action in an appropriate United States district court for appropriate declaratory and injunctive relief against any insurer who violates the requirements referred to in subsection (a).CommentsClose CommentsPermalink





(c) Insurer Liability- An insurer shall be responsible under subsections (a) and (b) for any violation of a statistical agent acting on behalf of the insurer.CommentsClose CommentsPermalink

SEC. 212. EXEMPTION AND RELATION TO STATE LAWS.

(a) Exemption for United States Programs- Reporting shall not be required under this title with respect to insurance provided by any program underwritten or administered by the United States.CommentsClose CommentsPermalink





(b) Relation to State Laws- This title shall not be construed as annulling, altering, or affecting the laws of any State or any political subdivision of a State relating to public disclosure, submission of information, and recordkeeping or exempting any insurer subject to this title from any obligation under, or an obligation to comply with, any such law.CommentsClose CommentsPermalink

SEC. 213. REGULATIONS.

(a) Authorization-CommentsClose CommentsPermalink





(1) IN GENERAL- The Secretary shall issue any regulations required under this title and any other regulations that may be necessary to carry out this title.CommentsClose CommentsPermalink





(2) SUBSTANTIVE REGULATIONS- The regulations shall be issued in accordance with the procedures under section 553 of title 5, United States Code, for substantive regulations.CommentsClose CommentsPermalink





(3) EFFECTIVE DATE- Except as otherwise provided in this title, such final regulations shall be issued before the end of the 18-month period beginning on the date of the enactment of this Act.CommentsClose CommentsPermalink





(b) Burdens- In prescribing such regulations, the Secretary shall take into consideration the administrative, paperwork, and other burdens on insurance agents, including independent insurance agents, involved in complying with the requirements of this title and shall minimize the burdens imposed by such requirements with respect to such agents.CommentsClose CommentsPermalink

SEC. 214. DEFINITIONS.

For purposes of this subtitle, the following definitions shall apply:CommentsClose CommentsPermalink





(1) AGENT- The term ‘agent’--CommentsClose CommentsPermalink





(A) means, with respect to an insurer, an agent licensed by a State who sells property and casualty insurance; andCommentsClose CommentsPermalink





(B) includes agents who are employees of the insurer, agents who are independent contractors working exclusively for the insurer, and agents who are independent contractors appointed to represent the insurer on a nonexclusive basis.CommentsClose CommentsPermalink





(2) COMMERCIAL INSURANCE- The term ‘commercial insurance’ means any line of property and casualty insurance, except private passenger automobile, homeowner’s insurance and dwelling fire and allied lines, and other personal lines of insurance.CommentsClose CommentsPermalink





(3) DESIGNATED LINE- The term ‘designated line’ means a line of insurance or bid, performance, and payment bonds designated by the Secretary under section 210(a).CommentsClose CommentsPermalink





(4) EXPOSURES- The term ‘exposures’ means, for purposes of section 203, with respect to an insurance policy, an expression of an exposure unit covered under the policy compared to the duration of the policy (pursuant to standards established by the Secretary for uniform reporting of exposures).CommentsClose CommentsPermalink





(5) EXPOSURE UNITS- The term ‘exposure units’ means, for purposes of section 203, an automobile or dwelling covered under an insurance policy for private passenger automobile or homeowners or dwelling fire and allied lines coverage.CommentsClose CommentsPermalink





(6) INSURANCE- The term ‘insurance’ means property and casualty insurance. Such term includes primary insurance, surplus lines insurance, and any other arrangement for the shifting and distributing of risks that is determined to be insurance under the law of any State in which the insurer or insurer group engages in an insurance business.CommentsClose CommentsPermalink





(7) INSURER- The term ‘insurer’--CommentsClose CommentsPermalink





(A) means any corporation, association, society, order, firm, company, mutual, partnership, individual, aggregation of individuals, or any other legal entity that is authorized to transact the business of property or casualty insurance in any State or that is engaged in a property or casualty insurance business; andCommentsClose CommentsPermalink





(B) does not include an individual or entity which represents an insurer as agent solely for the purpose of selling or which represents a consumer as a broker solely for the purpose of buying insurance.CommentsClose CommentsPermalink





(8) ISSUED- The term ‘issued’ means, with respect to an insurance policy, newly issued or renewed.CommentsClose CommentsPermalink





(9) JOINT UNDERWRITING ASSOCIATION- The term ‘joint underwriting association’ means an unincorporated association of insurers established to provide a particular form of insurance to the public.CommentsClose CommentsPermalink





(10) MORTGAGE INSURANCE- The term ‘mortgage insurance’ means insurance against the nonpayment of, or default on, a mortgage or loan for residential or commercial property.CommentsClose CommentsPermalink





(11) PRIVATE MORTGAGE INSURANCE- The term ‘private mortgage insurance’ means mortgage insurance other than mortgage insurance made available under the National Housing Act, title 38 of the United States Code, or title V of the Housing Act of 1949.CommentsClose CommentsPermalink





(12) PROPERTY AND CASUALTY INSURANCE- The term ‘property and casualty insurance’--CommentsClose CommentsPermalink





(A) means insurance against loss of or damage to property, insurance against loss of income or extra expense incurred because of loss of, or damage to, property, and insurance against third party liability claims caused by negligence or imposed by statute or contract; andCommentsClose CommentsPermalink





(B) does not include workers’ compensation, professional liability, or title insurance.CommentsClose CommentsPermalink





(13) RESIDUAL MARKET- The term ‘residual market’--CommentsClose CommentsPermalink





(A) means an assigned risk plan, joint underwriting association, or any similar mechanism designed to make insurance available to those unable to obtain it in the voluntary market; andCommentsClose CommentsPermalink





(B) includes each statewide plan under part A of title XII of the National Housing Act to assure fair access to insurance requirements.CommentsClose CommentsPermalink





(14) RURAL AREA- The term ‘rural area’ means any area that--CommentsClose CommentsPermalink





(A) has a population of 10,000 or more;CommentsClose CommentsPermalink





(B) has a continuous boundary; andCommentsClose CommentsPermalink





(C) contains only areas that are rural areas, as such term is defined in section 520 of the Housing Act of 1949 (except that clause (3)(B) of such section 520 shall not apply for purposes of this title).CommentsClose CommentsPermalink





(15) SECRETARY- The term ‘Secretary’ means the Secretary of Housing and Urban Development.CommentsClose CommentsPermalink





(16) STATE- The term ‘State’ means any State, the District of Columbia, the Commonwealth of Puerto Rico, the Northern Mariana Islands, the Virgin Islands, American Samoa, and the Trust Territory of the Pacific Islands.CommentsClose CommentsPermalink

SEC. 215. EFFECTIVE DATE.

The requirements of this title relating to reporting of information by insurers shall take effect with respect to the first annual reporting period that begins more than 24 months after the date of the enactment of this Act.CommentsClose CommentsPermalink

Subtitle B--Improvements in Other Data Disclosure RequirementsCommentsClose CommentsPermalink

SEC. 221. MAINTENANCE AND DISCLOSURE OF INFORMATION BY THE FINANCIAL INSTITUTIONS EXAMINATION COUNCIL.

(a) In General- In collecting information from financial institutions, and affiliates of financial institutions, under the Community Reinvestment Act of 1977 and the Home Mortgage Disclosure Act of 1975 relating to farm, small business, and home loans, and maintaining such information on and disclosing such information from the national information center database, the Financial Institutions Examination Council shall identify whether the financial institution or affiliate is transmitting such information pursuant to the Community Reinvestment Act of 1977 or the Home Mortgage Disclosure Act of 1975.CommentsClose CommentsPermalink





(b) Maintenance of Database- The Financial Institutions Examination Council shall maintain a comprehensive database containing the hierarchical structure of organizations including financial holding companies, bank holding companies, depository institutions, and non-depository institutions.CommentsClose CommentsPermalink

TITLE III--REGULATORY AND STRUCTURAL REFORMSCommentsClose CommentsPermalink

SEC. 301. ANTIREDLINING REQUIREMENT FOR FINANCIAL HOLDING COMPANIES.

Section 4(l)(1) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(l)(1)) (as amended by section 108 of this Act) is amended--CommentsClose CommentsPermalink





(1) by striking ‘and’ at the end of subparagraph (E);CommentsClose CommentsPermalink





(2) by striking the period at the end of subparagraph (F) (as so redesignated by such section 110 of title I) and inserting ‘; and’; andCommentsClose CommentsPermalink





(3) by adding at the end the following new subparagraph:CommentsClose CommentsPermalink





‘(G) in the case of any bank holding company which underwrites or sells, or any affiliate of which underwrites or sells, annuities contracts or contracts insuring, guaranteeing, or indemnifying against loss, harm, damage, illness, disability, or death--CommentsClose CommentsPermalink





‘(i) the company or affiliate has not been adjudicated in any Federal court, and has not entered into a consent decree filed in a Federal court or into a settlement agreement, premised upon a violation of the Fair Housing Act for the activities described in this subparagraph; orCommentsClose CommentsPermalink





‘(ii) if such company or affiliate has entered into any such consent decree or settlement agreement, the company or the affiliate is not in violation of the decree or settlement agreement as determined by a court of competent jurisdiction or the agency with which the decree or agreement was entered into.’.CommentsClose CommentsPermalink

SEC. 302. NOTICE AND PUBLIC COMMENT REQUIRED BEFORE ESTABLISHING A FINANCIAL HOLDING COMPANY.

Paragraph (6) of section 4(k) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(k)) is amended to read as follows:CommentsClose CommentsPermalink





‘(6) NOTICE AND OPPORTUNITY FOR COMMENT REQUIRED-CommentsClose CommentsPermalink





‘(A) IN GENERAL- No financial holding company shall directly or indirectly acquire, and no company that becomes a financial holding company shall directly or indirectly acquire control of, any company in the United States, including through merger, consolidation, or other type of business combination, that is engaged in activities permitted under this subsection or subsection (n) or (o), unless--CommentsClose CommentsPermalink





‘(i) such holding company has provided notice to the Board, not later than 60 days prior to such proposed acquisition or prior to becoming a financial holding company, and during that time period, or such longer time period not exceeding an additional 60 days, as established by the Board;CommentsClose CommentsPermalink





‘(ii) the Board has provided public notice and opportunity for comment for not less than 30 days; andCommentsClose CommentsPermalink





‘(iii) the Board has not issued a notice disapproving the proposed acquisition or retention.CommentsClose CommentsPermalink





‘(B) FACTORS FOR CONSIDERATION- In reviewing any prior notice filed under this paragraph, the Board shall take into consideration--CommentsClose CommentsPermalink





‘(i) whether the company is in compliance with all applicable criteria set forth in subsection (b) and the provisions of subsection (d);CommentsClose CommentsPermalink





‘(ii) whether the proposed combination represents an undue aggregation of resources;CommentsClose CommentsPermalink





‘(iii) whether the proposed combination poses a risk to the deposit insurance system;CommentsClose CommentsPermalink





‘(iv) whether the proposed combination poses a risk to State insurance guaranty funds;CommentsClose CommentsPermalink





‘(v) whether the proposed combination can reasonably be expected to be in the best interests of depositors or policyholders of the respective entities;CommentsClose CommentsPermalink





‘(vi) whether the proposed transaction can reasonably be expected to further the purposes of this Act and produce benefits to the public;CommentsClose CommentsPermalink





‘(vii) whether, and the extent to which, the proposed combination poses an undue risk to the stability of the financial system in the United States; andCommentsClose CommentsPermalink





‘(viii) the community reinvestment record of all parties to the proposed transaction.CommentsClose CommentsPermalink





‘(C) REQUIRED INFORMATION- The Board may disapprove any prior notice filed under this paragraph if the company submitting such notice neglects, fails, or refuses to furnish to the Board all relevant information required by the Board.CommentsClose CommentsPermalink





‘(D) SOLICITATION OF VIEWS OF OTHER SUPERVISORY AGENCIES-CommentsClose CommentsPermalink





‘(i) IN GENERAL- Upon receiving a prior notice under this paragraph, in order to provide for the submission of their views and recommendations, the Board shall give notice of the proposal to--CommentsClose CommentsPermalink





‘(I) the appropriate Federal banking agency of any bank involved;CommentsClose CommentsPermalink





‘(II) the appropriate functional regulator of any functionally regulated nondepository institution (as defined in section 5(c)(1)(C)) involved; andCommentsClose CommentsPermalink





‘(III) the Secretary of the Treasury, the Attorney General, and the Federal Trade Commission.CommentsClose CommentsPermalink





‘(ii) TIMING- The views and recommendations of any agency provided notice under this paragraph shall be submitted to the Board not later than 30 calendar days after the date on which notice to the agency was given, unless the Board determines that another shorter time period is appropriate.’.CommentsClose CommentsPermalink

SEC. 303. PUBLIC MEETINGS FOR BANK ACQUISITIONS AND MERGERS.

(a) Bank Holding Company Act of 1956- Section 3(c)(2) of the Bank Holding Company Act of 1956 (12 U.S.C. 1842(c)(2)) is amended--CommentsClose CommentsPermalink





(1) by striking ‘FACTORS- In every case’ and inserting ‘FACTORS-CommentsClose CommentsPermalink





‘(A) IN GENERAL- In every case’; andCommentsClose CommentsPermalink





(2) by adding at the end the following new subparagraphs:CommentsClose CommentsPermalink





‘(B) MEETINGS- Upon the request of any person that commented on the application, the Board shall--CommentsClose CommentsPermalink





‘(i) hold a meeting involving the commenters and the institution; andCommentsClose CommentsPermalink





‘(ii) gather and consider additional information discussed at the meeting.CommentsClose CommentsPermalink





‘(C) PUBLIC HEARINGS-CommentsClose CommentsPermalink





‘(i) IN GENERAL- In the case of each application for approval under this section, the Board shall, as necessary and on a timely basis, conduct public hearings in 1 or more areas where the Board believes there will be a substantial public impact.CommentsClose CommentsPermalink





‘(ii) NUMBER- When a significant number of members of the general public request a public hearing, the Board shall hold 1 or more public hearings, the number of which are to be determined by the number of requesters of the hearing and the areas in which the merger is likely to have a substantial public impact.CommentsClose CommentsPermalink





‘(iii) OPPORTUNITY TO BE HEARD ON IMPACT OF ACQUISITION OR MERGER- Public hearings shall provide an opportunity for commenters and other members of the general public to speak as witnesses regarding the impacts of the acquisition or merger.’.CommentsClose CommentsPermalink





(b) Federal Deposit Insurance Act- Section 18(c) of the Federal Deposit Insurance Act (12 U.S.C. 1828(c)) is amended by adding at the end the following new paragraphs:CommentsClose CommentsPermalink





(12) MEETINGS- Upon the request of any person(s) that commented on the application, the agency shall hold a meeting involving the commenters and the institution. The agency shall gather and consider additional information discussed at the meeting.CommentsClose CommentsPermalink





‘(13) MEETINGS- Upon the request of any person that commented on an application, the responsible agency shall--CommentsClose CommentsPermalink





‘(A) hold a meeting involving the commenters and any insured depository institution involved; andCommentsClose CommentsPermalink





‘(B) gather and consider additional information discussed at the meeting.CommentsClose CommentsPermalink





‘(14) PUBLIC HEARINGS-CommentsClose CommentsPermalink





‘(A) IN GENERAL- In each merger transaction involving 1 or more insured depository institutions, the responsible agency shall, as necessary and on a timely basis, conduct public hearings in 1 or more areas where the agency believes there will be a substantial public impact.CommentsClose CommentsPermalink





‘(B) NUMBER- When a significant number of members of the general public request a public hearing, the agency shall hold 1 or more public hearings, the number of which are to be determined by the number of requesters of the hearing and the areas in which the merger is likely to have a substantial public impact.CommentsClose CommentsPermalink





‘(C) OPPORTUNITY TO BE HEARD ON IMPACT OF ACQUISITION OR MERGER- Public hearings shall provide an opportunity for commenters and other members of the general public to speak as witnesses regarding the impacts of the acquisition or merger.’.CommentsClose CommentsPermalink





(c) National Bank Consolidation and Merger Act- The National Bank Consolidation and Merger Act (12 U.S.C. 215 et seq.) is amended by adding at the end the following new section:CommentsClose CommentsPermalink