Sec. 203. Strengthening the Community Reinvestment Act of 1977

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This section may be cited as the Community Reinvestment Reform Act of 2019 . The Community Reinvestment Act of 1977 ( 12 U.S.C. 2901 et seq.) is amended— by amending sections 802 and 803 ( 12 U.S.C. 2901 , 2902) to read as follows: Congress finds that— regulated financial institutions are required by law to demonstrate that they serve the convenience and needs of the communities in which they are chartered or do business, in particular low- and moderate-income communities; the convenience and needs of communities include the need for credit services, deposit services, transaction services, other financial services, and community development loans and investments; and regulated financial institutions have a continuing and affirmative obligation to meet the credit or other financial needs of the local communities in which they are chartered or do business.

It is the purpose of this title to require each appropriate Federal financial supervisory agency to use its authority when examining regulated financial institutions to ensure that those institutions meet the credit or other financial needs of the local communities in which they are chartered or do business consistent with the safe and sound operation of those institutions. In this title: The term application for a deposit facility means an application to the appropriate Federal financial supervisory agency otherwise required under Federal law or regulations thereunder for— a charter for a national bank or Federal savings and loan association; deposit insurance in connection with a newly chartered State bank, savings bank, savings and loan association, or similar institution; the establishment of a domestic branch or other facility with the ability to accept deposits of a regulated financial institution; the relocation of the home office or a branch office of a regulated financial institution; the merger or consolidation with, the acquisition of the assets of, or the assumption of the liabilities of a regulated financial institution requiring approval under section 18(c) of the Federal Deposit Insurance Act ( 12 U.S.C. 1828(c) ); or the acquisition of shares in, or the assets of, a regulated financial institution requiring approval under section 3 of the Bank Holding Company Act of 1956 ( 12 U.S.C. 1842 ).

The term appropriate Federal banking agency has the meaning given the term in section 3 of the Federal Deposit Insurance Act ( 12 U.S.C. 1813 ). The term appropriate Federal financial supervisory agency means— the appropriate Federal banking agency with respect to depository institutions and depository institution holding companies; and the Bureau of Consumer Financial Protection with respect to any covered person supervised by the Bureau pursuant to section 1024 of the Dodd-Frank Wall Street Reform and Consumer Protection Act ( 12 U.S.C. 5514 ).

The term assessment area means, with respect to a regulated financial institution, each community, including a State, metropolitan area, and urban or rural county, in which the institution— maintains deposit-taking branches, automated teller machines, or retail offices; is represented by an agent; issues a significant number of loans or other products relative to the total number of loans or other products made by the institution; has issued not less than 75 percent of the loans of the institution; or has conducted not less than 75 percent of the business of the institution.

The term community benefits plan means a plan that provides measurable goals for future amounts of safe and sound loans, investments, services, and other financial products for low- and moderate-income communities and other distressed or underserved communities. The term community development means— affordable housing for low- or moderate-income individuals and avoidance of patterns of lending resulting in the loss of affordable housing units; community development services, including counseling and successful mortgage or loan modifications of delinquent loans; activities that promote integration; activities that promote economic development by financing small businesses or farms that meet the size eligibility requirements of the development company or small business investment company programs under section 121.301 of title 13, Code of Federal Regulations, or any successor regulation, with an emphasis on small businesses that have gross annual revenues of not more than $1,000,000; activities that revitalize or stabilize— low- or moderate-income geographies; designated disaster areas; distressed or underserved nonmetropolitan middle-income geographies designated by the Federal Financial Institutions Examination Council, based on— rates of poverty, unemployment, and population loss; or population size, density, and dispersion, if those activities help to meet essential community needs, including the needs of low- and moderate-income individuals; or other distressed or underserved communities; or activities that promote physical, environmental, and sensory accessibility in housing stock that is integrated into the community.

The terms depository institution and depository institution holding company have the meanings given those terms in section 3 of the Federal Deposit Insurance Act ( 12 U.S.C. 1813 ). The term entire community means all of the assessment areas of a regulated financial institution. The term enumerated consumer laws has the meaning given the term in section 1002 of the Consumer Financial Protection Act of 2010 ( 12 U.S.C. 5481 ). The term geography means a census tract delineated by the Bureau of the Census in the most recent decennial census.

The term insured depository institution has the meaning given the term in section 3 of the Federal Deposit Insurance Act ( 12 U.S.C. 1813 ). The term other distressed or underserved community means an area that, according to a periodic review and data analysis by the appropriate Federal financial supervisory agencies on an interagency basis through the Federal Financial Institutions Examination Council, is experiencing economic hardship or is underserved by financial institutions.

The term regulated financial institution means— an insured depository institution; a depository institution holding company; and a U.S. nonbank mortgage originator. The term U.S. nonbank mortgage originator means a covered person subject to section 1024 of the Dodd-Frank Wall Street Reform and Consumer Protection Act ( 12 U.S.C. 5514 ) that offers or provides— origination of loans secured by real estate for use by consumers primarily for personal, family, or household purposes; or loan modification or foreclosure relief services in connection with a loan described in subparagraph (A). ; in section 804 ( 12 U.S.C. 2903 )— by redesignating subsections

(c)and

(d)as subsections

(f)and (g), respectively; by striking subsections

(a)and

(b)and inserting the following: In connection with its examination of a regulated financial institution other than a U.S. nonbank mortgage originator, the appropriate Federal financial supervisory agency shall perform the following: Assess the record of the institution in meeting the credit or other financial needs of its entire community, in particular low- and moderate-income people and communities, and other distressed or underserved communities, consistent with the safe and sound operation of the institution. Assess the effectiveness of the following activities in meeting the credit or other financial needs of the assessment areas of the institution, consistent with the safe and sound operation of the institution: Retail lending, including home, small business, consumer, and other lending and financial products, that responds to credit needs or other financial needs. Community development lending and investments, which may include a consideration of— the origination of loans and other efforts by the institution to assist existing low- and moderate-income residents to remain in affordable housing in their community; and the origination of loans by the institution that result in the construction, rehabilitation, or preservation of affordable housing units. Retail financial services and community development services. With respect to its evaluation of an application for a deposit facility by the institution— consider the record described in paragraph (1), the overall rating of the institution under this section, and any improvement plans submitted pursuant to this section; provide an opportunity for public comment for a period of not less than 60 days; consider changes in the community reinvestment performance of the institution since the most recent rating under this section by the appropriate Federal financial supervisory agency; and require— a demonstration of public benefit, including a community benefits plan with measurable goals regarding increasing responsible lending and other financial products; that the institution consult with community-based organizations and other community stakeholders in developing the community benefits plan; and a public hearing for any institution that has a received a need-to-improve or sufficient grade in any individual assessment area during the most recent examination. In connection with its examination of a U.S. nonbank mortgage originator, the appropriate Federal financial supervisory agency shall perform the following: Assess the record of the U.S. nonbank mortgage originator in meeting the credit or other financial needs of its entire community, in particular low-income and moderate-income people and communities and other distressed or underserved communities, consistent with the safe and sound operation of the U.S. nonbank mortgage originator. Assess, as appropriate, the following activities in the assessment areas of the U.S. nonbank mortgage originator: Retail lending, including home loans. Community development services. Community development lending and investments, which may include a consideration of— the origination of loans and other efforts by the institution to assist existing low- and moderate-income residents to remain in affordable housing in their community; the origination of loans by the institution that result in the construction, rehabilitation or preservation of affordable housing units; and investments in or loans to community development financial institutions (as defined in section 103 of the Community Development Banking and Financial Institutions Act of 1994 ( 12 U.S.C. 4702 )), community development corporations (as defined in section 613 of the Community Economic Development Act of 1981 ( 42 U.S.C. 9802 )), and other nonprofit organizations serving the housing and development needs of the community. With respect to its evaluation of an application for a deposit facility by the U.S. nonbank mortgage originator— consider the record described in paragraph (1), the overall rating of the U.S. nonbank mortgage originator under this section, and any improvement plans submitted pursuant to this section; provide an opportunity for public comment for a period of not less than 60 days; consider changes in the community reinvestment performance of the U.S. nonbank mortgage originator since the most recent rating under this section by the appropriate Federal financial supervisory agency; and require— a demonstration that granting the application for a deposit facility is in the public interest, which shall include a submission of a community benefits plan by the U.S. nonbank mortgage originator to the appropriate Federal financial supervisory agency; that the U.S. nonbank mortgage originator consult with community-based organizations and other community stakeholders in developing the community benefits plan; and a public hearing for any U.S. nonbank mortgage originator that has a received a need-to-improve or sufficient grade in any individual assessment area during the most recent examination. In connection with its examination of a regulated financial institution under subsection

(a)or (b), the appropriate Federal financial supervisory agency shall— consider public comments received by the appropriate Federal financial supervisory agency regarding the record of the institution in meeting the credit or other financial needs of its entire community, including low- and moderate-income communities; and require an improvement plan for an institution that receives a rating of sufficient or lower on the written evaluation of the institution, or such a rating in any individual assessment area, and require the improvement plan to result in the reasonable likelihood that the institution will obtain a rating of at least satisfactory record of meeting community credit or other financial needs in the relevant measure on the next examination. A regulated financial institution that is required to submit an improvement plan required under paragraph (1)(B) shall submit the plan in writing to the appropriate Federal financial supervisory agency not later than 90 days after receiving notice that the regulated financial institution is required to submit the plan. Upon receipt of an improvement plan of a regulated financial institution required under paragraph (1)(B), the appropriate Federal financial supervisory agency shall— make the plan available to the public for review and comment for a period of not less than 60 days; and require the regulated financial institution to revise, as appropriate, the improvement plan in response to the public comments received under the public review and comment period described in clause

(i)and submit the plan to the appropriate Federal financial supervisory agency not later than 60 days after the end of that period. In the case of a regulated financial institution whose lending or other business is not clustered in geographical areas and is thinly dispersed across the country, the institution shall— be evaluated under subsection

(a)or (b), as applicable— by considering the effectiveness of the institution in serving customers or borrowers, with a special emphasis on low- and moderate-income individuals across the country regardless of where the individuals reside; and based on objective thresholds developed by the appropriate Federal financial supervisory agencies to clarify when lending or other business is dispersed across the country and not clustered in distinct geographical areas, which may include low levels of lending or other financial products across States or other areas; and meet the needs of other distressed or underserved communities. Remediation of consumers pursuant to an order by an court or administrative body or a settlement with a government agency or a private party shall not be considered in an assessment conducted under subsection (a)(2) or (b)(2). An evaluation of a bank holding company under this section shall incorporate evaluations of subsidiary regulated financial institutions made by the appropriate Federal financial supervisory agency of each subsidiary, if applicable. ; in subsection (f), as so redesignated— by striking paragraph (2); by redesignating paragraph

(3)as paragraph (2); and in paragraph (2), as so redesignated, by striking subparagraph (C); and in subsection (g), as so redesignated, by striking subsection

(a)and inserting subsections

(a)and

(b); in section 807 ( 12 U.S.C. 2906 )— in subsection (a)— by striking an insured depository institution and inserting a regulated financial institution ; and by inserting or financial after credit ; in subsection (b)— in paragraph (1)— in subparagraph (A)— in clause (ii), by striking and at the end; by redesignating clause

(iii)as clause (iv); and by inserting after clause

(ii)the following: disclose whether the institution engaged in acts or practices that the Bureau of Consumer Financial Protection has determined, and has publicly disclosed, violate the enumerated consumer laws; and ; and by striking subparagraph

(B)and inserting the following: The information required under clauses

(i)and

(ii)of subparagraph

(A)shall be presented separately for each assessment area. If a regulated financial institution has engaged in acts or practices that the appropriate Federal financial supervisory agency has determined to be unfair, deceptive, or abusive or acts or practices that violate enumerated consumer laws intended to ensure the fair, equitable, and nondiscriminatory access to credit for individuals and communities that are enforced by the Bureau of Consumer Financial Protection or other Federal or State agencies, the written evaluation shall be negatively influenced in a manner commensurate with the extent of the harm suffered by those individuals and communities. ; in paragraph (2)— by striking subparagraphs (A), (B), (C), and

(D)and inserting the following: Outstanding record of meeting community credit or other financial needs . Satisfactory record of meeting community credit or other financial needs . Sufficient record of meeting community credit or other financial needs . Needs to improve record of meeting community credit or other financial needs . Substantial noncompliance in meeting community credit or other financial needs . ; and by inserting after the flush text following paragraph

(2)the following: The appropriate Federal financial supervisory agencies may— alter the ratings under this subsection to change or include additional ratings; and develop an accompanying point system that includes ranges for each rating category under paragraph (2). ; by redesignating subsection

(e)as subsection (f); and by inserting after subsection

(d)the following: If a regulated financial institution appeals the assigned rating under this section, the appropriate Federal financial supervisory agency shall post a public notice of the appeal on the website of the appropriate Federal financial supervisory agency. ; and by adding at the end the following: Each regulated financial institution shall collect and maintain in machine readable form, as prescribed by the appropriate Federal financial supervisory agency, until the completion of the next examination under this title, the following data for each small business or small farm loan originated or purchased by the regulated financial institution: A unique number or alpha-numeric symbol that can be used to identify the relevant loan. The loan amount at origination. The loan location. An indicator whether the loan was to a business or farm with gross annual revenues of $1,000,000 or less. Each regulated financial institution shall collect and maintain in machine readable form, as prescribed by the appropriate Federal financial supervisory agency, data for consumer loans originated or purchased by the regulated financial institution, including motor vehicle loans, credit cards, home equity loans, and other secured or unsecured loans. The regulated financial institution shall maintain data separately for each category of consumer loan, including the following for each loan: A unique number or alpha-numeric symbol that can be used to identify the relevant loan. The loan amount at origination or purchase. The loan location. The gross annual income of the borrower that the regulated financial institution considered in making its credit decision. Each regulated financial institution shall collect and maintain in machine readable form, as prescribed by the appropriate Federal financial supervisory agency, data on the categories of community development lending and investments, including data regarding financing affordable housing, small business development, and economic development. Each regulated financial institution shall collect and report to the appropriate Federal financial supervisory agency by March 1 of each year a list for each assessment area showing the geographies within the area. The appropriate Federal Supervisory agency shall collect data from regulated financial institutions that reflects how many of the customers of those institutions are low- and moderate-income customers and the services that are used by those customers. The appropriate Federal financial supervisory agency shall prepare annually for each regulated financial institution that reports data pursuant to this section a statement to be known as the CRA Small Business Disclosure Statement that contains, on a State-by-State basis, the following: For each county (and for each assessment area smaller than a county) with a population of 500,000 persons or fewer in which the regulated financial institution reported a small business or small farm loan: The number and amount of small business and small farm loans reported as originated or purchased located in low-, moderate-, middle-, and upper-income geographies. A list grouping each geography according to whether the geography is low-, moderate-, middle-, or upper-income. A list showing each geography in which the regulated financial institution reported a small business or small farm loan. The number and amount of small business and small farm loans to businesses and farms with gross annual revenues of $1,000,000 or less. For each county (and for each assessment area smaller than a county) with a population in excess of 500,000 in which the regulated financial institution reported a small business or small farm loan: The number and amount of small business and small farm loans reported as originated or purchased located in geographies with median income relative to the area median income of less than 10 percent, 10 or more but less than 20 percent, 20 or more but less than 30 percent, 30 or more but less than 40 percent, 40 or more but less than 50 percent, 50 or more but less than 60 percent, 60 or more but less than 70 percent, 70 or more but less than 80 percent, 80 or more but less than 90 percent, 90 or more but less than 100 percent, 100 or more but less than 110 percent, 110 or more but less than 120 percent, and 120 percent or more. A list grouping each geography in the county or assessment area according to whether the median income in the geography relative to the area median income is less than 10 percent, 10 or more but less than 20 percent, 20 or more but less than 30 percent, 30 or more but less than 40 percent, 40 or more but less than 50 percent, 50 or more but less than 60 percent, 60 or more but less than 70 percent, 70 or more but less than 80 percent, 80 or more but less than 90 percent, 90 or more but less than 100 percent, 100 or more but less than 110 percent, 110 or more but less than 120 percent, and 120 percent or more. A list showing each geography in which the regulated financial institution reported a small business or small farm loan. The number and amount of small business and small farm loans to businesses and farms with gross annual revenues of $1,000,000 or less. The number and amount of small business and small farm loans located inside each assessment area reported by the regulated financial institution and the number and amount of small business and small farm loans located outside the assessment areas reported by the regulated financial institution. The number and amount of community development loans reported as originated or purchased. Each appropriate Federal financial supervisory agency shall prepare annually, for each county and for each assessment area smaller than a county, an aggregate disclosure statement of small business, small farm, and consumer lending by all regulated financial institutions subject to reporting under this section, which shall indicate, for each geography, the number and amount of all small business, small farm, and consumer loans originated or purchased by reporting regulated financial institutions. An appropriate Federal financial supervisory agency may adjust the form of the disclosure statement prepared under paragraph

(1)if necessary, because of special circumstances, to protect the privacy of a borrower or the competitive position of a regulated financial institution. The Federal Financial Institutions Examination Council, in consultation with the appropriate Federal financial supervisory agencies, shall implement a system— to allow the public to access online and in a searchable format the data maintained under paragraphs

(1)through

(4)of subsection (a); and that ensures that personally identifiable financial information is not disclosed to public. An appropriate Federal financial supervisory agency may not use the authorities of the appropriate Federal financial supervisory agency under this section to obtain a record from a regulated financial institution for the purpose of gathering or analyzing the personally identifiable financial information of a consumer. . Section 4(k)(6) of the Bank Holding Company Act of 1956 ( 12 U.S.C. 1843(k)(6) ) is amended to read as follows: 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— the holding company has provided notice to the Board, not later than 60 days prior to the 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; the Board has provided public notice and opportunity for comment for not less than 60 days; and the Board has not issued a notice disapproving the proposed acquisition or retention. In reviewing any prior notice filed under this paragraph, the Board shall— consider the overall rating of the financial holding company under the Community Reinvestment Act of 1977 ( 12 U.S.C. 2901 et seq.) and any improvement plans submitted pursuant to that Act; provide opportunity for public comment for a period of not less than 60 days; consider changes in the community reinvestment performance of the financial holding company since the last rating under the Community Reinvestment Act of 1977 ( 12 U.S.C. 2901 et seq.) by the appropriate Federal financial supervisory agency; and require— a demonstration that granting the application for a deposit facility is in the public interest, which shall include submission to the appropriate Federal financial supervisory agency of a community benefits plan; that the institution consult with community-based organizations and other community stakeholders in developing the community benefits plan; and a public hearing for any bank that has received a need-to-improve or sufficient grade in any assessment area during the last examination under the Community Reinvestment Act of 1977 ( 12 U.S.C. 2901 et seq.). . Section 10(c)(2)(H)(i) of the Home Owners' Loan Act ( 12 U.S.C. 1467a(c)(2)(H)(i) ) is amended by striking section 804(c) of the Community Reinvestment Act of 1977 ( and inserting 12 U.S.C. 2903(c) ) section 804(f) of the Community Reinvestment Act of 1977 ( . 12 U.S.C. 2903(f) )

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