Fair Lending for All Act
This bill modifies provisions related to prohibited credit discrimination.
The bill adds sexual orientation, gender identity, and an applicant's location based on zip code or census tract as classes protected against discrimination with respect to credit transactions. (Currently, discrimination is prohibited on the basis of race, color, religion, national origin, sex, marital status, age, or because an applicant receives public assistance.)
The bill establishes criminal penalties for violations of prohibited credit discrimination.
The Consumer Financial Protection Bureau is required to review loan applications for compliance with specified consumer laws and to establish an Office of Fair Lending Testing.

To establish an Office of Fair Lending Testing to test for compliance 
 with the Equal Credit Opportunity Act, to strengthen the Equal Credit 
  Opportunity Act and to provide for criminal penalties for violating 
                   such Act, and for other purposes.


 


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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fair Lending for All Act''.

SEC. 2. OFFICE OF FAIR LENDING TESTING.

    (a) Establishment.--There is established within the Bureau of 
Consumer Financial Protection an Office of Fair Lending Testing 
(hereinafter referred to as the ``Office'').
    (b) Director.--The head of the Office shall be a Director, who 
shall--
            (1) be appointed to a 5-year term by, and report to, the 
        Director of the Bureau of Consumer Financial Protection;
            (2) appoint and fix the compensation of such employees as 
        are necessary to carry out the duties of the Office under this 
        section; and
            (3) provide an estimated annual budget to the Director of 
        the Bureau of Consumer Financial Protection.
    (c) Civil Service Position.--The position of the Director shall be 
a career position within the civil service.
    (d) Testing.--
            (1) In general.--The Office, in consultation with the 
        Attorney General and the Secretary of Housing and Urban 
        Development, shall conduct testing of compliance with the Equal 
        Credit Opportunity Act by creditors, through the use of 
        individuals who, without any bona fide intent to receive a 
        loan, pose as prospective borrowers for the purpose of 
        gathering information.
            (2) Referral of violations.--If, in carrying out the 
        testing described under paragraph (1), the Office believes a 
        person has violated the Equal Credit Opportunity Act, the 
        Office shall refer such violation in writing to the Attorney 
        General for appropriate action.
    (e) Report to Congress.--Section 707 of the Equal Credit 
Opportunity Act (15 U.S.C. 1691f) is amended by adding at the end the 
following: ``In addition, each report of the Bureau shall include an 
analysis of the testing carried out pursuant to section 2 of the Fair 
Lending for All Act, and each report of the Bureau and the Attorney 
General shall include a summary of criminal enforcement actions taken 
under section 706A.''.

SEC. 3. PROHIBITION ON CREDIT DISCRIMINATION.

    (a) In General.--Subsection (a) of section 701 of the Equal Credit 
Opportunity Act (15 U.S.C. 1691) is amended to read as follows:
    ``(a) It shall be unlawful to discriminate against any person, with 
respect to any aspect of a credit transaction--
            ``(1) on the basis of race, color, religion, national 
        origin, sex (including sexual orientation and gender identity), 
        marital status, or age (provided the applicant has the capacity 
        to contract);
            ``(2) on the basis of the person's zip code, or census 
        tract;
            ``(3) because all or part of the person's income derives 
        from any public assistance program; or
            ``(4) because the person has in good faith exercised any 
        right under the Consumer Credit Protection Act.''.
    (b) Removal of Certain References to Creditors and Applicants and 
Definition Added.--The Equal Credit Opportunity Act (15 U.S.C. 1691 et 
seq.) is amended--
            (1) in section 701(b)--
                    (A) by striking ``applicant'' each place such term 
                appears and inserting ``person''; and
                    (B) in paragraph (2), by striking ``applicant's'' 
                each place such term appears and inserting 
                ``person's'';
            (2) in section 702--
                    (A) by redesignating subsection (g) as subsection 
                (h); and
                    (B) by inserting after subsection (f) the 
                following:
    ``(g) The term `aggrieved person' includes any person who--
            ``(1) claims to have been injured by a discriminatory 
        credit practice; or
            ``(2) believes that such person will be injured by a 
        discriminatory credit practice.'';
            (3) in section 704A--
                    (A) in subsection (b)(1), by striking ``applicant'' 
                each place such term appears and inserting ``aggrieved 
                person''; and
                    (B) in subsection (c), by striking ``applicant'' 
                and inserting ``aggrieved person'';
            (4) in section 705--
                    (A) by striking ``the applicant'' each place such 
                term appears and inserting ``persons''; and
                    (B) in subsection (a)--
                            (i) by striking ``a creditor to take'' and 
                        inserting ``taking''; and
                            (ii) by striking ``applicant'' and 
                        inserting ``person''; and
            (5) in section 706--
                    (A) by striking ``creditor'' each place such term 
                appears and inserting ``person'';
                    (B) by striking ``creditor's'' each place such term 
                appears and inserting ``person's'';
                    (C) by striking ``creditors'' each place such term 
                appears and inserting ``persons''; and
                    (D) in subsection (f), by striking ``applicant'' 
                and inserting ``aggrieved person''.

SEC. 4. CRIMINAL PENALTIES FOR VIOLATIONS OF THE EQUAL CREDIT 
              OPPORTUNITY ACT.

    (a) In General.--The Equal Credit Opportunity Act (15 U.S.C. 1691 
et seq.) is amended by inserting after section 706 the following:
``Sec. 706A. Criminal penalties
    ``(a) Individual Violations.--Any person who knowingly and 
willfully violates this title shall be fined not more than $50,000, or 
imprisoned not more than 1 year, or both.
    ``(b) Pattern or Practice.--
            ``(1) In general.--Any person who engages in a pattern or 
        practice of knowingly and willfully violating this title shall 
        be fined not more than $100,000 for each violation of this 
        title, or imprisoned not more than twenty years, or both.
            ``(2) Personal liability of executive officers and 
        directors of the board.--Any executive officer or director of 
        the board of an entity who knowingly and willfully causes the 
        entity to engage in a pattern or practice of knowingly and 
        willfully violating this title (or who directs another agent, 
        senior officer, or director of the entity to commit such a 
        violation or engage in such acts that result in the director or 
        officer being personally unjustly enriched) shall be--
                    ``(A) fined in an amount not to exceed 100 percent 
                of the compensation (including stock options awarded as 
                compensation) received by such officer or director from 
                the entity--
                            ``(i) during the time period in which the 
                        violations occurred; or
                            ``(ii) in the one to three year time period 
                        preceding the date on which the violations were 
                        discovered; and
                    ``(B) imprisoned for not more than 5 years.''.
    (b) Clerical Amendment.--The table of contents for the Equal Credit 
Opportunity Act (15 U.S.C. 1691 et seq.) is amended by inserting after 
the item relating to section 706 the following:

``706A. Criminal penalties.''.

SEC. 5. REVIEW OF LOAN APPLICATIONS.

    (a) In General.--Subtitle C of the Consumer Financial Protection 
Act of 2010 (12 U.S.C. 5531 et seq.) is amended by adding at the end 
the following:

``SEC. 1038. REVIEW OF LOAN APPLICATIONS.

    ``(a) In General.--The Bureau shall carry out reviews of loan 
applications and the process of taking loan applications being used by 
covered persons to ensure such applications and processes do not 
violate the Equal Credit Opportunity Act or any other Federal consumer 
financial law.
    ``(b) Prohibition and Enforcement.--If the Bureau determines under 
subsection (a) that any loan application or process of taking a loan 
application violates the Equal Credit Opportunity Act or any other 
Federal consumer financial law, the Bureau shall--
            ``(1) prohibit the covered person from using such 
        application or process; and
            ``(2) take such enforcement or other actions with respect 
        to the covered person as the Bureau determines appropriate.''.
    (b) Clerical Amendment.--The table of contents in section 1 of the 
Dodd-Frank Wall Street Reform and Consumer Protection Act is amended by 
inserting after the item relating to section 1037 the following:

``Sec. 1038. Review of loan applications.''.

SEC. 6. MORTGAGE DATA COLLECTION.

    (a) In General.--Section 304(b)(4) of the Home Mortgage Disclosure 
Act of 1975 (12 U.S.C. 2803(b)(4)) is amended by striking ``census 
tract, income level, racial characteristics, age, and gender'' and 
inserting ``the applicant or borrower's zip code, census tract, income 
level, race, color, religion, national origin, sex, marital status, 
sexual orientation, gender identity, and age''.
    (b) Protection of Privacy Interests.--Section 304(h)(3)(A) of the 
Home Mortgage Disclosure Act of 1975 (12 U.S.C. 2803(h)(3)(A)) is 
amended--
            (1) in clause (i), by striking ``and'' at the end;
            (2) by redesignating clause (ii) as clause (iii); and
            (3) by inserting after clause (i) the following:
                            ``(ii) zip code, census tract, and any 
                        other category of data described in subsection 
                        (b)(4), as the Bureau determines to be 
                        necessary to satisfy the purpose described in 
                        paragraph (1)(E), and in a manner consistent 
                        with that purpose; and''.
            Amend the title so as to read: ``A bill to establish an 
        Office of Fair Lending Testing to test for compliance with the 
        Equal Credit Opportunity Act, to strengthen the Equal Credit 
        Opportunity Act, to ensure that persons injured by 
        discriminatory practices, including organizations that have 
        diverted resources to address discrimination and whose mission 
        has been frustrated by illegal acts, can seek relief under such 
        Act and to provide for criminal penalties for violating such 
        Act, and for other purposes.''.
                                                 Union Calendar No. 263

117th CONGRESS

  2d Session

                               H. R. 166

                          [Report No. 117-349]

_______________________________________________________________________
Fair Lending for All Act
To establish an Office of Fair Lending Testing to test for compliance with the Equal Credit Opportunity Act, to strengthen the Equal Credit Opportunity Act and to provide for criminal penalties for violating such Act, and for other purposes.
Fair Lending for All Act
Fair Lending for All Act
Rep. Green, Al