HR 976 — 1071 Repeal to Protect Small Business Lending Act

changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

 EQUAL CREDIT OPPORTUNITY ACT

 TITLE VII--EQUAL CREDIT OPPORTUNITY

Sec.
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[704B. Small business loan data collection.]

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Sec. 701. Prohibited discrimination; reasons for adverse action

 (a) It shall be unlawful for any creditor to discriminate 
against any applicant, with respect to any aspect of a credit 
transaction--
 (1) on the basis of race, color, religion, national 
 origin, sex or marital status, or age (provided the 
 applicant has the capacity to contract);
 (2) because all or part of the applicant's income 
 derives from any public assistance program; or
 (3) because the applicant has in good faith exercised 
 any right under the Consumer Credit Protection Act.
 (b) It shall not constitute discrimination for purposes of 
this title for a creditor--
 (1) to make an inquiry of marital status if such 
 inquiry is for the purpose of ascertaining the 
 creditor's rights and remedies applicable to the 
 particular extension of credit and not to discriminate 
 in a determination of credit-worthiness;
 (2) to make an inquiry of the applicant's age or of 
 whether the applicant's income derives from any public 
 assistance program if such inquiry is for the purpose 
 of determining the amount and probable continuance of 
 income levels, credit history, or other pertinent 
 element of credit-worthiness as provided in regulations 
 of the Board;
 (3) to use any empirically derived credit system 
 which considers age if such system is demonstrably and 
 statistically sound in accordance with regulations of 
 the Bureau, except that in the operation of such system 
 the age of an elderly applicant may not be assigned a 
 negative factor or value; or
 (4) to make an inquiry or to consider the age of an 
 elderly applicant when the age of such applicant is to 
 be used by the creditor in the extension of credit in 
 favor of such applicant[; or].
 [(5) to make an inquiry under section 704B, in 
 accordance with the requirements of that section.]
 (c) It is not a violation of this section for a creditor to 
refuse to extend credit offered pursuant to--
 (1) any credit assistance program expressly 
 authorized by law for an economically disadvantaged 
 class of persons;
 (2) any credit assistance program administered by a 
 nonprofit organization for its members or an 
 economically disadvantaged class of persons; or
 (3) any special purpose credit program offered by a 
 profit-making organization to meet special social needs 
 which meets standards prescribed in regulations by the 
 Board;
if such refusal is required by or made pursuant to such 
program.
 (d)(1) Within thirty days (or such longer reasonable time as 
specified in regulations of the Bureau for any class of credit 
transaction) after receipt of a completed application for 
credit, a creditor shall notify the applicant of its action on 
the application.
 (2) Each applicant against whom adverse action is taken shall 
be entitled to a statement of reasons for such action from the 
creditor. A creditor satisfies this obligation by--
 (A) providing statements of reasons in writing as a 
 matter of course to applicants against whom adverse 
 action is taken; or
 (B) giving written notification of adverse action 
 which discloses (i) the applicant's right to a 
 statement of reasons within thirty days after receipt 
 by the creditor of a request made within sixty days 
 after such notification, and (ii) the identity of the 
 person or office from which such statement may be 
 obtained. Such statement may be given orally, if the 
 written notification advises the applicant of his right 
 to have the statement of reasons confirmed in writing 
 on written request.
 (3) A statement of reasons meets the requirements of this 
section only if it contains the specific reasons for the 
adverse action taken.
 (4) Where a creditor has been requested by a third party to 
make a specific extension of credit directly or indirectly to 
an applicant, the notification and statement of reasons 
required by this subsection may be made directly by such 
creditor, or indirectly through the third party, provided in 
either case that the identity of the creditor is disclosed.
 (5) The requirements of paragraphs (2), (3), or (4) may be 
satisfied by verbal statements or notifications in the case of 
any creditor who did not act on more than one hundred and fifty 
applications during the calendar year preceding the calendar 
year in which the adverse action is taken, as determined under 
regulations of the Board.
 (6) For purposes of this subsection, the term ``adverse 
action'' means a denial or revocation of credit, a change in 
the terms of an existing credit arrangement, or a refusal to 
grant credit in substantially the amount or on substantially 
the terms requested. Such term does not include a refusal to 
extend additional credit under an existing credit arrangement 
where the applicant is delinquent or otherwise in default, or 
where such additional credit would exceed a previously 
established credit limit.
 (e) Copies Furnished to Applicants.--
 (1) In general.--Each creditor shall furnish to an 
 applicant a copy of any and all written appraisals and 
 valuations developed in connection with the applicant's 
 application for a loan that is secured or would have 
 been secured by a first lien on a dwelling promptly 
 upon completion, but in no case later than 3 days prior 
 to the closing of the loan, whether the creditor grants 
 or denies the applicant's request for credit or the 
 application is incomplete or withdrawn.
 (2) Waiver.--The applicant may waive the 3 day 
 requirement provided for in paragraph (1), except where 
 otherwise required in law.
 (3) Reimbursement.--The applicant may be required to 
 pay a reasonable fee to reimburse the creditor for the 
 cost of the appraisal, except where otherwise required 
 in law.
 (4) Free copy.--Notwithstanding paragraph (3), the 
 creditor shall provide a copy of each written appraisal 
 or valuation at no additional cost to the applicant.
 (5) Notification to applicants.--At the time of 
 application, the creditor shall notify an applicant in 
 writing of the right to receive a copy of each written 
 appraisal and valuation under this subsection.
 (6) Valuation defined.--For purposes of this 
 subsection, the term ``valuation'' shall include any 
 estimate of the value of a dwelling developed in 
 connection with a creditor's decision to provide 
 credit, including those values developed pursuant to a 
 policy of a government sponsored enterprise or by an 
 automated valuation model, a broker price opinion, or 
 other methodology or mechanism.

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

 [(a) Purpose.--The purpose of this section is to facilitate 
enforcement of fair lending laws and enable communities, 
governmental entities, and creditors to identify business and 
community development needs and opportunities of women-owned, 
minority-owned, and small businesses.
 [(b) Information Gathering.--Subject to the requirements of 
this section, in the case of any application to a financial 
institution for credit for women-owned, minority-owned, or 
small business, the financial institution shall--
 [(1) inquire whether the business is a women-owned, 
 minority-owned, or small 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 financial institution; and
 [(2) maintain a record of the responses to such 
 inquiry, separate from the application and accompanying 
 information.
 [(c) Right To Refuse.--Any applicant for credit may refuse to 
provide any information requested pursuant to subsection (b) in 
connection with any application for credit.
 [(d) No Access by Underwriters.--
 [(1) Limitation.--Where feasible, no loan underwriter 
 or other officer or employee of a financial 
 institution, or any affiliate of a financial 
 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 (b) in connection with 
 such application.
 [(2) Limited access.--If a financial institution 
 determines that a loan underwriter or other officer or 
 employee of a financial institution, or any affiliate 
 of a financial institution, involved in making any 
 determination concerning an application for credit 
 should have access to any information provided by the 
 applicant pursuant to a request under subsection (b), 
 the financial institution shall provide notice to the 
 applicant of the access of the underwriter to such 
 information, along with notice that the financial 
 institution may not discriminate on the basis of such 
 information.
 [(e) Form and Manner of Information.--
 [(1) In general.--Each financial institution shall 
 compile and maintain, in accordance with regulations of 
 the Bureau, a record of the information provided by any 
 loan applicant pursuant to a request under subsection 
 (b).
 [(2) Itemization.--Information compiled and 
 maintained under paragraph (1) shall be itemized in 
 order to clearly and conspicuously disclose--
 [(A) the number of the application and the 
 date on which 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 women-owned, 
 minority-owned, or small business loan 
 applicant;
 [(F) the gross annual revenue of the business 
 in the last fiscal year of the women-owned, 
 minority-owned, or small business loan 
 applicant preceding the date of the 
 application;
 [(G) the race, sex, and ethnicity of the 
 principal owners of the business; and
 [(H) any additional data that the Bureau 
 determines would aid in fulfilling the purposes 
 of this section.
 [(3) No personally identifiable information.--In 
 compiling and maintaining any record of information 
 under this section, a financial 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, or 
 any other personally identifiable information 
 concerning any individual who is, or is connected with, 
 the women-owned, minority-owned, or small business loan 
 applicant.
 [(4) Discretion to delete or modify publicly 
 available data.--The Bureau may, at its discretion, 
 delete or modify data collected under this section 
 which is or will be available to the public, if the 
 Bureau determines that the deletion or modification of 
 the data would advance a privacy interest.
 [(f) Availability of Information.--
 [(1) Submission to bureau.--The data required to be 
 compiled and maintained under this section by any 
 financial institution shall be submitted annually to 
 the Bureau.
 [(2) Availability of information.--Information 
 compiled and maintained under this section shall be--
 [(A) retained for not less than 3 years after 
 the date of preparation;
 [(B) made available to any member of the 
 public, upon request, in the form required 
 under regulations prescribed by the Bureau;
 [(C) annually made available to the public 
 generally by the Bureau, in such form and in 
 such manner as is determined by the Bureau, by 
 regulation.
 [(3) Compilation of aggregate data.--The Bureau may, 
 at its discretion--
 [(A) compile and aggregate data collected 
 under this section for its own use; and
 [(B) make public such compilations of 
 aggregate data.
 [(g) Bureau Action.--
 [(1) In general.--The Bureau shall prescribe such 
 rules and issue such guidance as may be necessary to 
 carry out, enforce, and compile data pursuant to this 
 section.
 [(2) Exceptions.--The Bureau, by rule or order, may 
 adopt exceptions to any requirement of this section and 
 may, conditionally or unconditionally, exempt any 
 financial institution or class of financial 
 institutions from the requirements of this section, as 
 the Bureau deems necessary or appropriate to carry out 
 the purposes of this section.
 [(3) Guidance.--The Bureau shall issue guidance 
 designed to facilitate compliance with the requirements 
 of this section, including assisting financial 
 institutions in working with applicants to determine 
 whether the applicants are women-owned, minority-owned, 
 or small businesses for purposes of this section.
 [(h) Definitions.--For purposes of this section, the 
following definitions shall apply:
 [(1) Financial institution.--The term ``financial 
 institution'' means any partnership, company, 
 corporation, association (incorporated or 
 unincorporated), trust, estate, cooperative 
 organization, or other entity that engages in any 
 financial activity.
 [(2) Small business.--The term ``small business'' has 
 the same meaning as the term ``small business concern'' 
 in section 3 of the Small Business Act (15 U.S.C. 632).
 [(3) Small business loan.--The term ``small business 
 loan'' means a loan made to a small business.
 [(4) Minority.--The term ``minority'' has the same 
 meaning as in section 1204(c)(3) of the Financial 
 Institutions Reform, Recovery, and Enforcement Act of 
 1989.
 [(5) 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.
 [(6) 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.]

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 ---------- 

 DODD-FRANK WALL STREET REFORM AND CONSUMER PROTECTION ACT

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

 (a) Short Title.--This Act may be cited as the ``Dodd-Frank 
Wall Street Reform and Consumer Protection Act''.
 (b) Table of Contents.--The table of contents for this Act is 
as follows:

Sec. 1. Short title; table of contents.
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 TITLE X--BUREAU OF CONSUMER FINANCIAL PROTECTION

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 Subtitle G--Regulatory Improvements

[Sec. 1071. Small business data collection.]

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TITLE X--BUREAU OF CONSUMER FINANCIAL PROTECTION

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 Subtitle G--Regulatory Improvements

[SEC. 1071. SMALL BUSINESS 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:

[``SEC. 704B. SMALL BUSINESS LOAN DATA COLLECTION.

 [``(a) Purpose.--The purpose of this section is to facilitate 
enforcement of fair lending laws and enable communities, 
governmental entities, and creditors to identify business and 
community development needs and opportunities of women-owned, 
minority-owned, and small businesses.
 [``(b) Information Gathering.--Subject to the requirements of 
this section, in the case of any application to a financial 
institution for credit for women-owned, minority-owned, or 
small business, the financial institution shall--
 [``(1) inquire whether the business is a women-owned, 
 minority-owned, or small 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 financial institution; and
 [``(2) maintain a record of the responses to such 
 inquiry, separate from the application and accompanying 
 information.
 [``(c) Right To Refuse.--Any applicant for credit may refuse 
to provide any information requested pursuant to subsection (b) 
in connection with any application for credit.
 [``(d) No Access by Underwriters.--
 [``(1) Limitation.--Where feasible, no loan 
 underwriter or other officer or employee of a financial 
 institution, or any affiliate of a financial 
 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 (b) in connection with 
 such application.
 [``(2) Limited access.--If a financial institution 
 determines that a loan underwriter or other officer or 
 employee of a financial institution, or any affiliate 
 of a financial institution, involved in making any 
 determination concerning an application for credit 
 should have access to any information provided by the 
 applicant pursuant to a request under subsection (b), 
 the financial institution shall provide notice to the 
 applicant of the access of the underwriter to such 
 information, along with notice that the financial 
 institution may not discriminate on the basis of such 
 information.
 [``(e) Form and Manner of Information.--
 [``(1) In general.--Each financial institution shall 
 compile and maintain, in accordance with regulations of 
 the Bureau, a record of the information provided by any 
 loan applicant pursuant to a request under subsection 
 (b).
 [``(2) Itemization.--Information compiled and 
 maintained under paragraph (1) shall be itemized in 
 order to clearly and conspicuously disclose--
 [``(A) the number of the application and the 
 date on which 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 women-
 owned, minority-owned, or small business loan 
 applicant;
 [``(F) the gross annual revenue of the 
 business in the last fiscal year of the women-
 owned, minority-owned, or small business loan 
 applicant preceding the date of the 
 application;
 [``(G) the race, sex, and ethnicity of the 
 principal owners of the business; and
 [``(H) any additional data that the Bureau 
 determines would aid in fulfilling the purposes 
 of this section.
 [``(3) No personally identifiable information.--In 
 compiling and maintaining any record of information 
 under this section, a financial 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, or 
 any other personally identifiable information 
 concerning any individual who is, or is connected with, 
 the women-owned, minority-owned, or small business loan 
 applicant.
 [``(4) Discretion to delete or modify publicly 
 available data.--The Bureau may, at its discretion, 
 delete or modify data collected under this section 
 which is or will be available to the public, if the 
 Bureau determines that the deletion or modification of 
 the data would advance a privacy interest.
 [``(f) Availability of information.--
 [``(1) Submission to bureau.--The data required to be 
 compiled and maintained under this section by any 
 financial institution shall be submitted annually to 
 the Bureau.
 [``(2) Availability of information.--Information 
 compiled and maintained under this section shall be--
 [``(A) retained for not less than 3 years 
 after the date of preparation;
 [``(B) made available to any member of the 
 public, upon request, in the form required 
 under regulations prescribed by the Bureau;
 [``(C) annually made available to the public 
 generally by the Bureau, in such form and in 
 such manner as is determined by the Bureau, by 
 regulation.
 [``(3) Compilation of aggregate data.--The Bureau 
 may, at its discretion--
 [``(A) compile and aggregate data collected 
 under this section for its own use; and
 [``(B) make public such compilations of 
 aggregate data.
 [``(g) Bureau Action.--
 [``(1) In general.--The Bureau shall prescribe such 
 rules and issue such guidance as may be necessary to 
 carry out, enforce, and compile data pursuant to this 
 section.
 [``(2) Exceptions.--The Bureau, by rule or order, may 
 adopt exceptions to any requirement of this section and 
 may, conditionally or unconditionally, exempt any 
 financial institution or class of financial 
 institutions from the requirements of this section, as 
 the Bureau deems necessary or appropriate to carry out 
 the purposes of this section.
 [``(3) Guidance.--The Bureau shall issue guidance 
 designed to facilitate compliance with the requirements 
 of this section, including assisting financial 
 institutions in working with applicants to determine 
 whether the applicants are women-owned, minority-owned, 
 or small businesses for purposes of this section.
 [``(h) Definitions.--For purposes of this section, the 
following definitions shall apply:
 [``(1) Financial institution.--The term `financial 
 institution' means any partnership, company, 
 corporation, association (incorporated or 
 unincorporated), trust, estate, cooperative 
 organization, or other entity that engages in any 
 financial activity.
 [``(2) Small business.--The term `small business' has 
 the same meaning as the term `small business concern' 
 in section 3 of the Small Business Act (15 U.S.C. 632).
 [``(3) Small business loan.--The term `small business 
 loan' means a loan made to a small business.
 [``(4) Minority.--The term `minority' has the same 
 meaning as in section 1204(c)(3) of the Financial 
 Institutions Reform, Recovery, and Enforcement Act of 
 1989.
 [``(5) 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.
 [``(6) 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.''.
 [(b) Technical and Conforming Amendments.--Section 701(b) of 
the Equal Credit Opportunity Act (15 U.S.C. 1691(b)) is 
amended--
 [(1) in paragraph (3), by striking ``or'' at the end;
 [(2) in paragraph (4), by striking the period at the 
 end and inserting ``; or''; and
 [(3) by inserting after paragraph (4), the following:
 [``(5) to make an inquiry under section 704B, in 
 accordance with the requirements of that 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 shall become effective on 
the designated transfer date.]

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