Sec. 502. Consumer Bureau oversight of credit scoring models
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The Fair Credit Reporting Act ( 15 U.S.C. 1681 et seq.), as amended by section 701, is further amended— by adding at the end the following new section: Not later than 1 year after the date of the enactment of this section, the Bureau shall (in consultation with the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, the Board of Directors of the Federal Deposit Insurance Corporation, and the National Credit Union Administration Board) issue final regulations applicable to any person that creates, maintains, utilizes, or purchases credit scoring models used in making credit decisions to establish standards for validating the accuracy and predictive value of all such credit scoring models, both before release for initial use and at regular intervals thereafter, for as long as such credit scoring models are made available for purchase or use by such person.
At least once every 2 years, the Bureau shall conduct a review of credit scoring models to determine whether the use of any particular factors, or the weight or consideration given to certain factors by credit scoring models, is inappropriate, including if such factors do not enhance or contribute to the accuracy and predictive value of the models. Upon the conclusion of its review, the Bureau may prohibit a person described in subsection
(a)from weighing, considering, or including certain factors in, or making available for purchase or use, certain credit scoring models or versions, as the Bureau determines appropriate. ; and in the table of contents for such Act, as amended by section 701, by adding after the item relating to section 630 the following new item: 631. Credit scoring models. .
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Sec. 502
Consumer Bureau oversight of credit scoring models
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