H.R. 1479 (111th): Community Reinvestment Modernization Act of 2009

111th Congress, 2009–2010. Text as of Mar 12, 2009 (Introduced).

Status & Summary | PDF | Source: GPO

I

111th CONGRESS

1st Session

H. R. 1479

IN THE HOUSE OF REPRESENTATIVES

March 12, 2009

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 concerned

A BILL

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.

1.

Short title; table of contents

(a)

Short Title

This Act may be cited as the Community Reinvestment Modernization Act of 2009.

(b)

Table of Contents

The table of contents of this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Findings.

Sec. 3. Purposes.

Title I—MODERNIZATION OF COMMUNITY REINVESTMENT ACT OF 1977 AND COMMUNITY SERVICE OBLIGATIONS

Sec. 101. Repeal of recent regulatory changes to the application of the Community Reinvestment Act of 1977 and restoration of comprehensive examinations.

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

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

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

Sec. 105. Small business loan data collection.

Sec. 106. Data collection of deposit accounts.

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

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

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

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

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

Title II—DATA DISCLOSURE REQUIREMENTS

Subtitle A—Disclosure of Insurance Availability and Insurer Investment Information

Sec. 201. Short title.

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

Sec. 203. Reporting of noncommercial insurance information.

Sec. 204. Reporting of rural insurance information.

Sec. 205. Waiver of reporting requirements.

Sec. 206. Reporting by private mortgage insurers.

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

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

Sec. 209. Availability and access system.

Sec. 210. Designations.

Sec. 211. Enforcement.

Sec. 212. Exemption and relation to State laws.

Sec. 213. Regulations.

Sec. 214. Definitions.

Sec. 215. Effective date.

Subtitle B—Improvements in Other Data Disclosure Requirements

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

Title III—REGULATORY AND STRUCTURAL REFORMS

Sec. 301. Antiredlining requirement for financial holding companies.

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

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

Sec. 304. Branch closure requirements.

Sec. 305. CRA examination schedule for small banks.

Sec. 306. CRA sunshine requirements.

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

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

Sec. 309. Annual report and congressional hearings.

2.

Findings

The Congress finds as follows:

(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.

(2)

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

(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.

(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.

(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.

(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.

(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.

(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.

(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.

(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.

(11)

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

(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.

(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.

(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.

3.

Purposes

The purposes of this Act are as follows:

(1)

To enhance the availability of financial services to citizens of all economic circumstances and in all geographic areas.

(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.

(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.

I

MODERNIZATION OF COMMUNITY REINVESTMENT ACT OF 1977 AND COMMUNITY SERVICE OBLIGATIONS

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.

(b)

Regulations Described

The regulations referred to in subsection (a) are any of the following regulations:

(1)

The regulations published jointly in final form on August 2, 2005, 70 Federal Register 44256 et seq.—

(A)

by the Comptroller of the Currency, amending 12 Code of Federal Regulations part 25;

(B)

by the Board of Governors of the Federal Reserve System, amending 12 Code of Federal Regulations part 228; and

(C)

by the Federal Deposit Insurance Corporation, amending 12 Code of Federal Regulations part 345.

(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.

(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.

(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.

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:

(4)

Community needs

(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.

(B)

Banking products and services defined

For purposes of this paragraph, the term banking products and services includes—

(i)

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

(ii)

consumer loans and extensions of credit and the servicing such loans and extensions of credit;

(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;

(iv)

small business and commercial loans and the servicing of such loans; and

(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.

.

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:

(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—

(i)

each metropolitan area in which the regulated financial institution maintains 1 or more domestic branches;

(ii)

each State in which the regulated financial institution maintains 1 or more domestic branches outside of a metropolitan area;

(iii)

each community in which the regulated financial institution makes more than 0.5 percent of the total amount of loans; and

(iv)

the communities rated by the evaluation shall include the communities in which the great majority of loans have been issued.

(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.

(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).

(E)

CRA improvement plan

(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.

(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.

(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.

(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.

(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.

(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.

(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.

.

(b)

Additional Performance Factors

Section 804(a)(1) of the Community Reinvestment Act of 1977 (12 U.S.C. 2903(a)(1)) is amended—

(1)

by inserting and neighborhoods of different racial characteristics after low- and moderate-income neighborhoods; and

(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.

(c)

Technical and Conforming Amendments

(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—

(A)

by inserting overall after the institution’s; and

(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.

(2)

Section 807 of the Community Reinvestment Act of 1977 (12 U.S.C. 2906) is amended—

(A)

by striking subsection (d); and

(B)

by redesignating subsection (e) as subsection (d).

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:

(d)

Treatment of Predatory Lending and Other Discriminatory Credit Practices

(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—

(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; and

(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.

(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.

(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.

.

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:

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—

(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; and

(2)

maintain a record of the responses to such inquiry separate from the application and accompanying information.

(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.

(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.

(d)

Form and manner of information

(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).

(2)

Itemized

Information compiled and maintained under paragraph (1) shall also be itemized in order to clearly and conspicuously disclose the following:

(A)

The number of the application and the date the application was received.

(B)

The type and purpose of the loan or other credit being applied for.

(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.

(D)

The type of action taken with respect to such application and the date of such action.

(E)

The census tract in which is located the principal place of business of the small business loan applicant.

(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.

(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.

(e)

Availability of information

(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.

(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.

(f)

Definitions

For purposes of this section, the following definitions shall apply:

(1)

Depository institution

The term depository institution

(A)

has the meaning given the term in section 3 of the Federal Deposit Insurance Act; and

(B)

includes any credit union.

(2)

Minority-owned business

The term minority-owned business means a business—

(A)

more than 50 percent of the ownership or control of which is held by 1 or more minority individuals; and

(B)

more than 50 percent of the net profit or loss of which accrues to 1 or more minority individuals.

(3)

Women-owned business

The term women-owned business means a business—

(A)

more than 50 percent of the ownership or control of which is held by 1 or more women; and

(B)

more than 50 percent of the net profit or loss of which accrues to 1 or more women.

(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.

(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:

(A)

Section 25.12(u) of subpart A of part 25.

(B)

Section 228.12(u) of part 228.

(C)

Section 345.12(u) of part 345.

(D)

Section 563e.12(t) of part 563e.

.

(b)

Technical and conforming amendments

Section 701(b) of the Equal Credit Opportunity Act (15 U.S.C. 1691(b)) is amended—

(1)

by striking or after the semicolon at the end of paragraph (3);

(2)

in paragraph (4), by striking the period at the end and inserting ; or; and

(3)

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

(5)

to make an inquiry under section 704B in accordance with the requirements of such section.

.

(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:

704B. Small business loan data collection.

.

(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.

106.

Data collection of deposit accounts

(a)

In general

(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.

(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.

(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.

(4)

Public availability

(A)

In general

The following information shall be publicly available on an annual basis:

(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.

(ii)

The type of deposit account including whether the account was a checking or savings account.

(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.

(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.

(b)

Availability of information

(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.

(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.

(c)

Definitions

For purposes of this section, the following definitions shall apply:

(1)

Depository institution

The term depository institution

(A)

has the meaning given the term in section 3 of the Federal Deposit Insurance Act; and

(B)

includes any credit union.

(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.

(d)

Agency use

Any Federal agency with jurisdiction over any depository institution shall—

(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; and

(2)

assess the distribution of residential and commercial accounts at such depository institution across income and minority level of census tracts.

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.

(b)

Definitions

For purposes of this section, the following definitions shall apply:

(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—

(A)

maintains a retail office or is represented by an agent;

(B)

has not less than 0.5 percent of the total market in securities; or

(C)

the communities constituting assessment areas shall include the communities in which the great majority of securities have been issued.

(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.

(3)

Securities company

The term securities company means any person who is—

(A)

a broker or dealer that is registered under the Securities Exchange Act of 1934;

(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; or

(C)

an investment company that is registered under the Investment Company Act of 1940.

(c)

Program

(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.

(2)

Factors to be included

(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—

(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;

(ii)

the number and distribution of customers residing in minority and low- and moderate-income census tracts; and

(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.

(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—

(i)

the number and dollar amount of community development investments in the assessment area; and

(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.

(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—

(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;

(ii)

the company’s record of opening or closing retail offices in the assessment area;

(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; and

(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.

(3)

Rating

(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—

(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; and

(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.

(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.

(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—

(i)

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

(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.

(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.

(E)

Improvement plan

(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.

(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.

(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.

(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.

(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.

(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.

(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—

(A)

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

(B)

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

(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.

(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.

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.

(b)

Definitions

For purposes of this section, the following definitions shall apply:

(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—

(A)

maintains a retail office or is represented by an agent;

(B)

has not less than 0.5 percent of the total market in housing-related loans; or

(C)

the communities constituting assessment areas shall include the communities in which the great majority of loans have been issued.

(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.

(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.

(4)

Secretary

The term Secretary means the Secretary of Housing and Urban Development.

(c)

Program

(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.

(2)

Factors to be included

(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—

(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;

(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;

(iii)

the mortgage bank’s market share in neighborhoods of different racial and income characteristics;

(iv)

the mortgage bank’s market share to borrowers of different racial and income characteristics;

(v)

a comparison of the rate at which the mortgage bank rejects applications from minority and White applicants;

(vi)

any evidence of illegal discriminatory credit practices, including steering, or offering less favorable loan products to applicants of different racial backgrounds; and

(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.

(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—

(i)

the number and dollar amount of community development investments in the assessment area; and

(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.

(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—

(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;

(ii)

the bank’s record of opening or closing retail offices in the assessment area;

(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; and

(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.

(3)

Rating

(A)

In general

The program shall provide for—

(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; and

(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.

(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.

(C)

Treatment of credit practices with negative impacts

(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—

(I)

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

(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.

(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.

(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.

(E)

Improvement plan

(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.

(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.

(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.

(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.

(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.

(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.

(d)

Consideration of Mortgage Bank’s Rating

(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—

(A)

conduct an examination of, and assign ratings to, mortgage banks under this subsection;

(B)

review the overall rating of each mortgage bank under this subsection;

(C)

provide opportunity for public comment on such rating; and

(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.

(2)

Consideration of mortgage bank’s rating

Whenever the Secretary considers an application by a mortgage bank, the Secretary shall—

(A)

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

(B)

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

(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.

(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.

(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.

(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.

(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.

(7)

Consultation

In taking any action under this subsection, the Secretary shall consult with all relevant Federal and State regulatory agencies and authorities.

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.

(b)

Definitions

For purposes of this section, the following definitions shall apply:

(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—

(A)

maintains a retail office or is represented by an agent;

(B)

has not less than 0.5 percent of the total market in insurance; or

(C)

the communities constituting assessment areas shall include the communities in which the great majority of policies have been issued.

(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.

(3)

Insurance company

The term insurance company includes any person engaged in the business of insurance to the extent of such activities.

(4)

Secretary

The term Secretary means the Secretary of Housing and Urban Development.

(c)

Program

(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.

(2)

Factors to be included

(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—

(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;

(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; and

(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.

(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—

(i)

the number and dollar amount of community development investments in the assessment area; and

(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.

(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—

(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;

(ii)

the company’s record of opening or closing retail offices or affiliating with agents in the assessment area;

(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; and

(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.

(3)

Rating

(A)

In general

The program shall provide for—

(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; and

(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.

(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.

(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—

(i)

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

(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.

(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.

(E)

Improvement plan

(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.

(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.

(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.

(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.

(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.

(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.

(d)

Consideration of Insurance Company’s Rating

(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—

(A)

conduct an examination of and assign ratings to each insurance company under this section;

(B)

provide opportunity for public comment on such rating; and

(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.

(2)

Consideration of insurance company rating

Whenever the Secretary considers an application to the agency by an insurance company, the agency shall—

(A)

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

(B)

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

(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.

(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.

(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.

(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.

(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—

(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;

(B)

publish notice of such failure to correct in the Federal Register; and

(C)

notify each appropriate State insurance regulator of such failure to correct.

(7)

Consultation

In taking any action under this subsection, the Secretary shall consult with all relevant Federal and State regulatory agencies and authorities.

(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.

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—

(1)

by striking and at the end of subparagraph (B);

(2)

by redesignating subparagraph (C) as subparagraph (F); and

(3)

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

(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;

(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;

(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

.

(b)

Technical and Conforming Amendments

(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).

(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).

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:

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.

(b)

Definitions

For purposes of this section the following definitions shall apply:

(1)

Assessment area

The term assessment area means an area delineated by a covered credit union consistent with the requirements described in subsection (d).

(2)

Covered credit union

The term covered credit union

(A)

means an insured credit union (as defined in section 101); and

(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.

(3)

Federal banking agencies

The term Federal banking agencies has the same meaning as in section 3 of the Federal Deposit Insurance Act.

(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.

(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.

(c)

Assessment of Record of Meeting Community Credit Needs

(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).

(2)

Performance tests

The regulations prescribed under paragraph (1) shall

(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; and

(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.

(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—

(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;

(B)

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

(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;

(D)

a covered credit unions lending activity in its assessment area in comparison to the credit unions 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);

(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; and

(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.

(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).

(d)

Assessment Area

(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.

(2)

Criteria for regulations

Regulations prescribed pursuant to paragraph (1) shall—

(A)

be consistent with regulations prescribed by the Federal banking agencies under the Community Reinvestment Act of 1977;

(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;

(C)

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

(D)

provide for consideration of a covered credit union’s shared branch;

(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; and

(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).

(3)

Facilitating compliance

The Board shall ensure that any assessment area of a covered credit union is delineated in a manner that—

(A)

does not permit the covered credit union to evade its obligations under this section; and

(B)

reflects the spirit and intent of this section.

(4)

Prohibitions

A covered credit union’s assessment area shall not—

(A)

reflect illegal discrimination; or

(B)

exclude minority or low- or moderate-income segments of, or communities in, the covered credit union’s field of membership.

(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.

(1)

Public section

Each written evaluation required by this subsection shall have a public section.

(2)

Public section

The public section of the written evaluation shall—

(A)

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

(B)

discuss the facts and data supporting such conclusions; and

(C)

contain the credit union’s rating and an explanation describing the basis for the rating.

(3)

Ratings

The covered credit union’s rating referred to in paragraph (2)(C) shall be one of the following:

(A)

Outstanding record of meeting community needs.

(B)

High Satisfactory record of meeting community needs.

(C)

Satisfactory record of meeting community needs.

(D)

Low Satisfactory record of meeting community needs.

(E)

Needs to improve record of meeting community needs.

(F)

Substantial noncompliance in meeting community needs.

(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—

(1)

each metropolitan area in which the credit union maintains 1 or more domestic branches;

(2)

each State in which the credit union maintains 1 or more domestic branches outside of a metropolitan area;

(3)

each community in which the credit union makes more than 0.5 percent of the total amount of loans; and

(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.

(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—

(1)

an application for the credit union to—

(A)

convert to an insured Federal credit union;

(B)

convert to an insured State credit union; or

(C)

convert to a new field of membership charter;

(2)

an application by a covered credit union to alter or expand its field of membership;

(3)

a merger with another credit union; and

(4)

an application to establish or relocate a branch.

(h)

CRA improvement plan

(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.

(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.

(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.

(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.

(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.

(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.

(i)

Reporting and Publication

(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.

(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.

(j)

Report on Implementation

(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—

(A)

the implementation of the regulations required under this section;

(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; and

(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.

(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—

(A)

conduct a study detailing the effectiveness of the Board’s implementation of this act; and

(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.

.

II

DATA DISCLOSURE REQUIREMENTS

A

Disclosure of Insurance Availability and Insurer Investment Information

201.

Short title

This title may be cited as the Insurance Disclosure Act.

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.

(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.

(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.

203.

Reporting of noncommercial insurance information

(a)

In General

The requirements established pursuant to section 202 to carry out this section shall—

(1)

be designed to ensure that information is submitted and compiled under this section as may be necessary to permit analysis and comparison of—

(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; and

(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; and

(2)

specify the data elements required to be reported under this section and require uniformity in the definitions of the data elements.

(b)

Insurers

(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—

(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;

(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;

(C)

the total number of—

(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; and

(ii)

such agents who were terminated by the insurer, by census tract in which the agent’s principal place of business was located; and

(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.

(2)

Specification of information for itemized disclosure

(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—

(i)

specify the data elements that shall be submitted;

(ii)

provide for the submission of information on an individual insurer basis;

(iii)

provide for the submission of the information with the least burden on insurers, particularly small insurers, and insurance agents;

(iv)

take into account existing statistical reporting systems in the insurance industry;

(v)

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

(vi)

provide for the submission of information that—

(I)

identifies the designated line, and subline or coverage type; and

(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;

(vii)

provide for the submission of information that distinguishes policies written in a residual market from policies written in the voluntary market;

(viii)

specify—

(I)

whether information shall be submitted on the basis of policy or exposure unit; and

(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;

(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; and

(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).

(B)

Rules regarding obtaining racial information

(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.

(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.

(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.

(3)

Rule for reporting by insurers

An insurer for a designated line shall submit—

(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; and

(B)

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

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.

(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.

205.

Waiver of reporting requirements

(a)

Waiver for States Collecting Equivalent Information

(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.

(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—

(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;

(B)

provides for adequate enforcement of such law or other requirements; and

(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.

(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.

(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.

(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.

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.

(b)

Reporting Under This Title

(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.

(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.

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:

(1)

Direct loans

(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.

(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.

(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.

(2)

Loan purchases

(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.

(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.

(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.

(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.

(b)

Designation of Other Investments

(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.

(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.

(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.

(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.

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.

(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.

209.

Availability and access system

(a)

Availability to Public

(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.

(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.

(b)

Public Access System

(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.

(2)

Bases of availability

The system shall provide access in the following manners:

(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.

(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.

(c)

Protections Regarding Loss Information

(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.

(2)

Protection of identity of insurer

In making available to the public or otherwise disclosing a loss ratio for an insurer—

(A)

the Secretary may not identify the insurer to which the loss ratio relates; and

(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).

(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.

210.

Designations

(a)

Designation of Lines of Insurance

(1)

In general

The Secretary shall, by regulation, designate lines of insurance as designated lines for purposes of this title, as follows:

(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.

(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 owner

(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.

(3)

Duration

(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.

(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.

(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.

(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).

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.

(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).

(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.

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.

(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.

213.

Regulations

(a)

Authorization

(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.

(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.

(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.

(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.

214.

Definitions

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

(1)

Agent

The term agent

(A)

means, with respect to an insurer, an agent licensed by a State who sells property and casualty insurance; and

(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.

(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.

(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).

(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).

(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.

(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.

(7)

Insurer

The term insurer

(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; and

(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.

(8)

Issued

The term issued means, with respect to an insurance policy, newly issued or renewed.

(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.

(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.

(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.

(12)

Property and casualty insurance

The term property and casualty insurance

(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; and

(B)

does not include workers’ compensation, professional liability, or title insurance.

(13)

Residual market

The term residual market

(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; and

(B)

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

(14)

Rural area

The term rural area means any area that—

(A)

has a population of 10,000 or more;

(B)

has a continuous boundary; and

(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).

(15)

Secretary

The term Secretary means the Secretary of Housing and Urban Development.

(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.

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.

B

Improvements in Other Data Disclosure Requirements

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.

(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.

III

REGULATORY AND STRUCTURAL REFORMS

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—

(1)

by striking and at the end of subparagraph (E);

(2)

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

(3)

by adding at the end the following new subparagraph:

(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—

(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; or

(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.

.

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:

(6)

Notice and opportunity for comment required

(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—

(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;

(ii)

the Board has provided public notice and opportunity for comment for not less than 30 days; and

(iii)

the Board has not issued a notice disapproving the proposed acquisition or retention.

(B)

Factors for consideration

In reviewing any prior notice filed under this paragraph, the Board shall take into consideration—

(i)

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

(ii)

whether the proposed combination represents an undue aggregation of resources;

(iii)

whether the proposed combination poses a risk to the deposit insurance system;

(iv)

whether the proposed combination poses a risk to State insurance guaranty funds;

(v)

whether the proposed combination can reasonably be expected to be in the best interests of depositors or policyholders of the respective entities;

(vi)

whether the proposed transaction can reasonably be expected to further the purposes of this Act and produce benefits to the public;

(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; and

(viii)

the community reinvestment record of all parties to the proposed transaction.

(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.

(D)

Solicitation of views of other supervisory agencies

(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—

(I)

the appropriate Federal banking agency of any bank involved;

(II)

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

(III)

the Secretary of the Treasury, the Attorney General, and the Federal Trade Commission.

(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.

.

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—

(1)

by striking Factors.—In every case and inserting

Factors.—

(A)

In general

In every case

; and

(2)

by adding at the end the following new subparagraphs:

(B)

Meetings

Upon the request of any person that commented on the application, the Board shall—

(i)

hold a meeting involving the commenters and the institution; and

(ii)

gather and consider additional information discussed at the meeting.

(C)

Public hearings

(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.

(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.

(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.

.

(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:

(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.

(13)

Meetings

Upon the request of any person that commented on an application, the responsible agency shall—

(A)

hold a meeting involving the commenters and any insured depository institution involved; and

(B)

gather and consider additional information discussed at the meeting.

(14)

Public hearings

(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.

(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.

(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.

.

(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:

6.

Public meetings for bank consolidations and mergers

(a)

Meetings

Upon the request of any person that commented on the application of any national bank, the Comptroller of the Currency shall—

(1)

hold a meeting involving the commenters and the bank; and

(2)

gather and consider additional information discussed at the meeting.

(b)

Public hearings

(1)

In general

In each case of a consolidation or merger under this Act, the Comptroller shall, as necessary and on a timely basis, conduct public hearings in 1 or more areas where the Comptroller believes, there will be a substantial public impact.

(2)

Number

When a significant number of members of the general public request a public hearing, the Comptroller 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.

(3)

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.

.

(d)

Home Owners’ Loan Act

Section 10(e) of the Home Owners’ Loan Act (12 U.S.C. 1463) is amended by adding at the end the following new paragraphs:

(7)

Public meetings for depository institution acquisitions and mergers

(A)

Meetings

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

(B)

Public hearings

(i)

In general

In each case involving an application under this subsection, the Director shall, as necessary and on a timely basis, conduct public hearings in 1 or more areas where the Director believes there will be a substantial public impact.

(ii)

Number

When a significant number of members of the general public request a public hearing, the Director 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.

(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 merger.

.

304.

Branch closure requirements

Subsection (a) of section 42 of the Federal Deposit Insurance Act (12 U.S.C. 1831r–1(a)) is amended by adding at the end the following new paragraphs:

(3)

Public comment

Upon receiving a notice from an insured depository institution pursuant to paragraph (1), the appropriate Federal agency shall—

(A)

promptly initiate a 60-day period for receiving public comment on the proposed closing of a branch of the depository institution; and

(B)

provide adequate notice of such public comment period in media of general circulation or public broadcast in the area served by such branch.

(4)

Public meeting for discussion of alternatives

If, during any period for public comment under paragraph (3) on the proposed closing of a branch of the depository institution, the appropriate Federal banking agency soliciting such comments receives a request for a public hearing on the proposal, the agency shall promptly schedule a public meeting to be held at least 30 days before the date of the proposed closure at a convenient location in the vicinity of such branch so that alternatives to closure can be considered by all stakeholders.

.

305.

CRA examination schedule for small banks

Section 809(a) of the Community Reinvestment Act of 1977 (12 U.S.C. 2908(a)) is amended to read as follows:

(a)

In General

All regulated financial institutions shall be examined under this title at least once in each 2-year period and the scheduling of regularly occurring examinations may not take into account the size or the aggregate assets of the financial institution.

.

306.

CRA sunshine requirements

Section 48 of the Federal Deposit Insurance Act (12 U.S.C. 1831y) (as added by section 711 of the Gramm-Leach-Bliley Act) is hereby repealed.

307.

Continuing community reinvestment requirement for financial holding companies

(a)

In General

Section 4(l)(2) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(l)(2)) is amended—

(1)

in subparagraph (A), by inserting or continuing after commencing; and

(2)

in subparagraph (B), by inserting or maintaining after acquiring.

(b)

Technical and Conforming Amendment

(1)

Paragraph (1) of section 4(m) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(m)(1)) is amended by striking subsection (l)(1) and inserting paragraph (1) or (2) of subsection (l).

(2)

Paragraph (2) of section 4(m) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(m)(2)) is amended by striking subsection (l)(1) and inserting paragraphs (1) and (2) of subsection (l).

308.

Changes in reporting requirements under the Home Mortgage Disclosure Act of 1975

(a)

Prohibition on Regulatory Exemptions From Reporting Requirements

Section 304 of the Home Mortgage Disclosure Act of 1975 (12 U.S.C. 2803) is amended by adding at the end the following new subsection:

(n)

Prohibition on Regulatory Exemptions From Reporting Requirements

Subject to subsection (i)—

(1)

no provision of this title may be construed as authorizing the Board, the Secretary, or any other Federal agency to exempt any depository institution from the requirements of this title; and

(2)

any exemption from the requirements of this title provided in any regulation, such as the exemption provided in Appendix A to part 203 of the Code of Federal Regulations for lending institutions described in section 303(2)(B) whose total dollar amount of purchase loans originated in any year did not exceed 10 percent of the total dollar amount of all loan originations by such institution in such year, shall cease to be effective as of the date of the enactment of the Community Reinvestment Modernization Act of 2009.

.

(b)

Reporting of Additional Data Required

Section 304(b) of the Home Mortgage Disclosure Act of 1975 (12 U.S.C. 2803(b)) is amended—

(1)

by striking and at the end of paragraph (3);

(2)

by striking the period at the end of paragraph (4) and inserting a semicolon; and

(3)

by adding at the following new paragraph:

(5)

information on loan pricing and terms, including interest rates, annual percentage rates, bona fide discount points, origination fees, other fees required to be disclosed in the Good Faith Estimate and the HUD–1 document, yield-spread premiums, financing of lump sum insurance premium payments, balloon payment, prepayment penalties, loan-to-value ratios, debt-to-income ratios, housing payment-to-income ratios, and credit score information, information on whether the loan is a fixed-rate loan or a variable rate mortgage loan (and if it is a variable rate mortgage loan, the length of any initial rate, and how often the rate adjusts); information on whether the financial institution required full documentation of borrower income; information on the loan channel, including whether a broker received the loan application and approved or rejected the application; and

.

(c)

Reporting on Manufactured Home Loans That Are Not Treated by the Depository Institution as Real Estate Loans

(1)

In general

Section 304(b) of the Home Mortgage Disclosure Act of 1975 (12 U.S.C. 2803(b)) is amended by inserting after paragraph (5) (as added by subsection (B) of this section) the following new paragraph:

(6)

the number and dollar amount of mortgage loans secured by manufactured homes (as defined in section 603 of the National Manufactured Housing Construction and Safety Act of 1974).

.

(2)

Mortgage loan defined to include manufactured home loans

Section 303(1) of the Home Mortgage Disclosure Act of 1975 (12 U.S.C. 2802(1)) is amended by inserting or a manufactured home after residential real property.

(d)

Creation of database on loan performance

(1)

In general

The Board of Governors of the Federal Reserve System shall—

(A)

create a database on loan performance (whether loans are current, delinquent, or in default or foreclosure);

(B)

link the database on loan performance with data collected pursuant to the Home Mortgage Disclosure Act of 1975; and

(C)

make such information publicly available.

(2)

Other information

The database established pursuant to paragraph (1)(A) shall also contain information on loan modifications, including the type of loan modification, such as interest rate reductions, principal loan balance reductions, repayment plans, forbearance, and modifications that increase outstanding balance owed.

(3)

Collaboration and collection

The Board of Governors of the Federal Reserve System shall—

(A)

collaborate with other relevant Federal and State agencies; and

(B)

collect information for the database on loan performance from loan servicers and other financial institutions.

(e)

Enforcement Powers for Secretary

Section 305 of the Home Mortgage Disclosure Act of 1975 (12 U.S.C. 2804) is amended by inserting at the end the following new subsection:

(d)

Authority To carry out subsection (b)(4)

For purposes of enforcing compliance with the requirements of this title pursuant to subsection (b)(4)—

(1)

subsections (b) through (n) of section 8 of the Federal Deposit Insurance Act shall apply to depository institutions described in section 303(2)(B) in the same manner they apply to depository institutions (as defined in section 3 of the Federal Deposit Insurance Act); and

(2)

the Secretary shall have the same powers and duties under such subsections with respect to depository institutions described in section 303(2)(B) as an appropriate Federal banking agency (as defined in such Act) has with respect to depository institutions (as defined in section 3 of the Federal Deposit Insurance Act).

.

309.

Annual report and congressional hearings

(a)

In general

On an annual basis, the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate shall hold hearings to consider the effectiveness of implementation of this Act by the Federal agencies with responsibilities under this Act.

(b)

Consideration of further amendments

The Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate shall consider, as appropriate, any enhancements or modifications to this Act to increase the effectiveness of the objectives and purposes of this Act and the amendments made by this Act to other provisions of law.

(c)

Rules of House of Representatives and Senate

Subsections (a) and (b) are enacted by the Congress—

(1)

as an exercise of the rulemaking power of the Senate and House of Representatives, respectively, and as such it is deemed a part of the rules of each House, respectively, but applicable only with respect to the procedure to be followed in that House and it supersedes other rules only to the extent that it is inconsistent with such rules; and

(2)

with full recognition of the constitutional right of either House to change the rules (so far as relating to the procedure of that House) at any time, in the same manner, and to the same extent as in the case of any other rule of that House.