Making Communities Stronger through the Community Reinvestment Act
This bill revises the Community Reinvestment Act, which addresses the availability of credit in communities. Under the act, financial regulators examine a banking institution's community activities such as lending, investments, and services, particularly for low- and moderate-income populations.
Specifically, the bill sets forth examination requirements regarding an institution's
Each institution must establish Community Advisory Committees in areas served by the institution.
To amend the Community Reinvestment Act of 1977 to improve the 
 assessment process for financial institutions under that 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 ``Making Communities Stronger through 
the Community Reinvestment Act''.

SEC. 2. FINDING.

    The Congress finds that Senator William Proxmire, who authored the 
Community Reinvestment Act of 1977 legislation, testified when 
discussing its purpose: ``By redlining . . . I am talking about the 
fact that banks and savings and loans will take their deposits from a 
community and instead of reinvesting them in that community, they will 
actually or figuratively draw a red line on a map around the areas of 
their city, sometimes in the inner city, sometimes in the older 
neighborhoods, sometimes ethnic and sometimes black, but often 
encompassing a great area of their neighborhood.''.

SEC. 3. ASSESSMENT OF COMMUNITY SERVICE.

    (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:
    ``(e) Assessment of Community Service.--
            ``(1) In general.--In assessing and taking into account, 
        under subsection (a), any community service or charity work 
        performed by the executives, board members, and employees of a 
        financial institution, the appropriate Federal financial 
        supervisory agency may not give any credit for such service or 
        work unless--
                    ``(A) the executives, board members, and employees 
                performing such service or work were acting as 
                representatives of the financial institution at the 
                time the service or work were performed;
                    ``(B) with respect to a financial institution with 
                total consolidated assets of at least $2,000,000,000, 
                the financial institution--
                            ``(i) collects and maintains relevant 
                        information with respect to the community 
                        service and charity work of the financial 
                        institution, in a format prescribed by the 
                        appropriate Federal financial supervisory 
                        agency; and
                            ``(ii) reports such information on an 
                        annual basis to the appropriate Federal 
                        financial supervisory agency; and
                    ``(C) the financial institution demonstrates the 
                impact of the community service or charity work on low- 
                and moderate-income neighborhoods, including whether 
                the community service or charity work--
                            ``(i) serves persistent poverty counties;
                            ``(ii) serves geographic areas with low 
                        levels of community development financing;
                            ``(iii) supports a minority depository 
                        institution, women's depository institution, 
                        low-income credit union, or a community 
                        development financial institution certified by 
                        the Secretary of the Treasury;
                            ``(iv) serves low-income individuals and 
                        families;
                            ``(v) supports small businesses or small 
                        farms with gross annual revenues of $250,000 or 
                        less;
                            ``(vi) directly facilitates the 
                        acquisition, construction, development, 
                        preservation, or improvement of affordable 
                        housing in high opportunity areas;
                            ``(vii) benefits Native communities, such 
                        as--
                                    ``(I) revitalization activities in 
                                Native Land Areas;
                                    ``(II) essential community 
                                facilities in Native Land Areas;
                                    ``(III) essential community 
                                infrastructure in Native Land Areas; 
                                and
                                    ``(IV) disaster preparedness and 
                                climate resiliency activities in Native 
                                Land Areas;
                            ``(viii) reflects a high degree of 
                        engagement with community partners, and are 
                        highly responsive to the needs of low-income 
                        communities;
                            ``(ix) result in a new community 
                        development financing product or service that 
                        addresses community development needs for low- 
                        or moderate-income individuals and families; or
                            ``(x) serves limited English proficient 
                        communities.
            ``(2) Definitions.--In this subsection:
                    ``(A) Community development financial 
                institution.--The term `community development financial 
                institution' has the meaning given that term under 
                section 103 of the Riegle Community Development and 
                Regulatory Improvement Act of 1994 (12 U.S.C. 4702).
                    ``(B) High opportunity area.--The term `high 
                opportunity area' means an area--
                            ``(i) designated by--
                                    ``(I) the Secretary of Housing and 
                                Urban Development as a Difficult 
                                Development Area; or
                                    ``(II) a State or local qualified 
                                allocation plan as a high opportunity 
                                area; and
                            ``(ii) with a poverty rate below--
                                    ``(I) 10 percent, with respect to a 
                                metropolitan area; or
                                    ``(II) 15 percent, with respect to 
                                an area that is not a metropolitan 
                                area.
                    ``(C) Native land area.--The term `Native Land 
                Area' means--
                            ``(i) all land within the limits of any 
                        Indian reservation under the jurisdiction of 
                        the Federal Government, as described in section 
                        1151(a) of title 18, United States Code;
                            ``(ii) all dependent Indian communities 
                        within the borders of the United States whether 
                        within the original or subsequently acquired 
                        territory thereof, and whether within or 
                        without the limits of a State, as described in 
                        section 1151(b) of title 18, United States 
                        Code;
                            ``(iii) all Indian allotments, the Indian 
                        titles to which have not been extinguished, 
                        including rights-of-way running through the 
                        same, as defined in section 1151(c) of title 
                        18, United States Code;
                            ``(iv) any land held in trust by the United 
                        States for Native Americans, as described in 
                        section 3765(1)(A) of title 38, United States 
                        Code;
                            ``(v) reservations established by a State 
                        government for a Tribe or Tribes recognized by 
                        the State;
                            ``(vi) any Alaska Native village as defined 
                        in section 3 of the Alaska Native Claims 
                        Settlement Act (43 U.S.C. 1602);
                            ``(vii) lands that have the status of 
                        Hawaiian Home Lands as defined in section 204 
                        of the Hawaiian Homes Commission Act, 1920 (42 
                        Stat. 108);
                            ``(viii) areas defined by the Bureau of the 
                        Census as Alaska Native Village Statistical 
                        Areas, Oklahoma Tribal Statistical Areas, 
                        Tribal-Designated Statistical Areas, or 
                        American Indian Joint-Use Areas; and
                            ``(ix) land areas of State-recognized 
                        Indian tribes and heritage groups that are 
                        defined and recognized by individual States and 
                        included in the annual Boundary and Annexation 
                        Survey of the Bureau of the Census.
                    ``(D) Persistent poverty county.--Term `persistent 
                poverty county' means a county that has had poverty 
                rates of 20 percent or more for the past 30 years, as 
                measured by the most recent decennial censuses.''.
    (b) Effective Date.--Section 804(e) of the Community Reinvestment 
Act of 1977, as added by subsection (a), shall take effect after the 
end of the 90-day period beginning on the date of enactment of this 
Act.

SEC. 4. TREATMENT OF ILLEGAL AND DISCRIMINATORY ACTIVITY.

    Section 804 of the Community Reinvestment Act of 1977 (12 U.S.C. 
2903), as amended by section 3, is further amended by adding at the end 
the following:
    ``(f) Treatment of Illegal or Discriminatory Activity.--
            ``(1) In general.--In assessing and taking into account, 
        under subsection (a), the record of a financial institution, 
        the appropriate Federal financial supervisory agency shall give 
        negative credit for any activity of the financial institution, 
        a subsidiary of the financial institution, or an entity 
        partnering with the financial institution or subsidiary that 
        includes evidence of an illegal or discriminatory practice, 
        including--
                    ``(A) activity that harms, including by displacing, 
                residents of low- and moderate-income neighborhoods;
                    ``(B) any violation of Federal law, regardless of 
                whether the violation is credit-related or not, 
                including any violation of section 987(b) of title 10, 
                United States Code (commonly referred to as the 
                `Military Lending Act'), the Servicemembers Civil 
                Relief Act, or prohibitions against unfair, deceptive, 
                or abusive acts or practices;
                    ``(C) any violation of State law; and
                    ``(D) any evidence of discriminatory practices 
                obtained by--
                            ``(i) the Bureau of Consumer Financial 
                        Protection as a part of the Bureau's regular 
                        supervision of the financial institution, 
                        subsidiary, or entity; and
                            ``(ii) the Department of Housing and Urban 
                        Development.
            ``(2) Considerations.--In determining the treatment of any 
        illegal or discriminatory activity described under paragraph 
        (1), the appropriate Federal financial supervisory agency shall 
        consider--
                    ``(A) the root cause of the activity;
                    ``(B) the severity of the harm to individuals and 
                communities as a result of the activity;
                    ``(C) the duration of time of the activity; and
                    ``(D) the pervasiveness of the activity.
            ``(3) Treatment on tests and overall assessment.--If, in 
        performing an assessment of a financial institution under 
        subsection (a), the appropriate Federal financial supervisory 
        agency uses separate tests or other evaluations as part of the 
        calculation of the overall assessment, the agency shall give 
        negative credit on both the overall assessment and any 
        applicable test or evaluation.''.

SEC. 5. COMMUNITY ADVISORY COMMITTEES.

    Section 804 of the Community Reinvestment Act of 1977 (12 U.S.C. 
2903), as amended by section 4, is further amended by adding at the end 
the following:
    ``(g) Community Advisory Committees.--
            ``(1) In general.--Each financial institution shall form a 
        separate Community Advisory Committee (which shall be composed 
        of a diverse set of consumer, housing, community development, 
        and other stakeholder groups representing the applicable 
        metropolitan statistical area) in each of the following:
                    ``(A) With respect to a financial institution with 
                consolidated assets equal to or greater than 
                $2,000,000,000, each metropolitan statistical area 
                where the financial institution or any subsidiaries of 
                the financial institution have a branch or other 
                facility (including an automated teller machine) and 
                each metropolitan statistical area where the financial 
                institution has a substantial number of customers who 
                maintain deposit accounts with the financial 
                institution.
                    ``(B) With respect to a financial institution with 
                consolidated assets of less than $2,000,000,000, each 
                State where the financial institution or any 
                subsidiaries of the financial institution are located.
            ``(2) Quarterly consultation.--The executives of a 
        financial institution shall meet with all the financial 
        institution's Community Advisory Committees on a quarterly 
        basis--
                    ``(A) to discuss the financial institution's 
                current work to meet the credit and deposit needs of 
                low- and moderate-income individuals and underserved 
                communities, persons with disabilities, LGBTQ+ 
                communities, and Chinese, Asian Indian, Filipino, 
                Japanese, Korean, Vietnamese, Pakistani, Cambodian, 
                Hmong, Laotian, Thai, Taiwanese, Burmese, Bangladeshi, 
                Nepalese, Indonesian, Malaysian, Hispanic or Latino, 
                Black or African American, American Indian and Alaska 
                Native, Native Hawaiian, Samoan, Chamorro, Tongan, 
                iTaukei, Marshallese, and Other Pacific Islander 
                communities, as applicable to the financial 
                institution's geographic areas;
                    ``(B) with respect to a financial institution with 
                consolidated assets equal to or greater than 
                $2,000,000,000, to assist the executives in developing 
                and updating a plan for how the institution will work 
                to meet the credit needs of the institution's entire 
                community, including low- and moderate-income 
                neighborhoods; and
                    ``(C) to discuss the institution's data (which 
                shall be disaggregated by Chinese, Asian Indian, 
                Filipino, Japanese, Korean, Vietnamese, Pakistani, 
                Cambodian, Hmong, Laotian, Thai, Taiwanese, Burmese, 
                Bangladeshi, Nepalese, Indonesian, Malaysian, Hispanic 
                or Latino, Black or African American, American Indian 
                and Alaska Native, and Native Hawaiian, Samoan, 
                Chamorro, Tongan, iTaukei, Marshallese and Other 
                Pacific Islander communities, as applicable to the 
                financial institution's geographic areas) on--
                            ``(i) mortgage lending and lending to small 
                        businesses and small farms;
                            ``(ii) retail products and services;
                            ``(iii) community development services; and
                            ``(iv) community development financing.
            ``(3) Specific consultations.--In addition to the quarterly 
        consultations required under paragraph (2), the executives of a 
        financial institution with consolidated assets of more than 
        $2,000,000,000 shall meet with the Community Advisory Committee 
        before--
                    ``(A) the financial institution applies for a 
                merger or acquisition;
                    ``(B) the financial institution, or any subsidiary 
                of the financial institution, applies for deposit 
                insurance;
                    ``(C) the financial institution applies to open a 
                new branch or to relocate an existing branch; or
                    ``(D) the financial institution provides notice 
                that it would close a branch or other facility.''.

SEC. 6. CONSIDERATION OF LENDING IN PARTNERSHIP WITH NON-DEPOSITORY 
              LENDERS.

    Section 804 of the Community Reinvestment Act of 1977 (12 U.S.C. 
2903), as amended by section 5, is further amended by adding at the end 
the following:
    ``(h) Consideration of Lending in Partnership With Non-Depository 
Lenders.--
            ``(1) In general.--As part of assessing a financial 
        institution under subsection (a), the appropriate Federal 
        financial supervisory agency shall evaluate the financial 
        institution's performance in originating small farm loans, 
        consumer loans (including residential mortgages, unsecured 
        installment loans, advances, and lines of credit), and loans 
        for small businesses (including unsecured installment loans, 
        advances, and lines of credit) in partnership with one or more 
        non-depository lenders.
            ``(2) Affordability and sustainability.--In making the 
        evaluation described under paragraph (1), the appropriate 
        Federal financial supervisory agency shall consider the 
        affordability and sustainability of the loan originations made 
        in partnership with one or more non-depository lenders.
            ``(3) Definitions.--In this subsection:
                    ``(A) Non-depository lender.--The term `non-
                depository lender' means a lender that is not an 
                insured depository institution (as defined in section 3 
                of the Federal Deposit Insurance Act (12 U.S.C. 1813)).
                    ``(B) Small business.--The term `small business' 
                means a small business concern (as defined under 
                section 3 of the Small Business Act (15 U.S.C. 632)), 
                except such term shall not include any small business 
                concern with gross annual revenue of greater than 
                $5,000,000 for the preceding fiscal year.
                    ``(C) Small farm loan.--The term `small farm loan' 
                means a loan--
                            ``(i) originated in an amount of $500,000 
                        or less; and
                            ``(ii) that is reported as a--
                                    ``(I) loan to finance agricultural 
                                production and other loan to farmers; 
                                or
                                    ``(II) loan secured by farmland.''.

SEC. 7. CONSIDERATION OF SMALL HOME MORTGAGE LENDING.

    Section 804 of the Community Reinvestment Act of 1977 (12 U.S.C. 
2903), as amended by section 6, is further amended by adding at the end 
the following:
    ``(i) Consideration of Small Home Mortgage Lending.--
            ``(1) In general.--As part of assessing a financial 
        institution under subsection (a), the appropriate Federal 
        financial supervisory agency shall evaluate the financial 
        institution's performance in facilitating home mortgage lending 
        targeted to low- and moderate-income borrowers in a safe and 
        sound manner, including--
                    ``(A) small-dollar, first-lien mortgages of 
                $100,000 or less in value that facilitate a home 
                purchase or help a borrower to refinance an existing 
                mortgage; and
                    ``(B) mortgages of any size originated in 
                cooperation with a minority depository institution, 
                women's depository institution, low-income credit 
                union, or a community development financial institution 
                certified by the Secretary of the Treasury (as defined 
                under section 103 of the Riegle Community Development 
                and Regulatory Improvement Act of 1994).
            ``(2) Data collection and reporting by large financial 
        institutions.--
                    ``(A) In general.--Each large financial institution 
                shall collect, maintain, and report to the appropriate 
                Federal financial supervisory agency--
                            ``(i) mortgage loan data needed to 
                        calculate retail lending volume and 
                        distribution metrics;
                            ``(ii) information related to demographics 
                        of borrowers, including the income, gender 
                        identity, sexual orientation, race, and 
                        ethnicity of mortgage applicants;
                            ``(iii) the number of mortgage loans 
                        originated with a value of $100,000 or less, as 
                        well as the demographics of borrowers, 
                        including income, gender, race, and ethnicity; 
                        and
                            ``(iv) if the financial institution has a 
                        special purpose credit program that focuses on 
                        borrowers from Hispanic or Latino, Black or 
                        African American, Chinese, Asian Indian, 
                        Filipino, Japanese, Korean, Vietnamese, 
                        Pakistani, Cambodian, Hmong, Laotian, Thai, 
                        Taiwanese, Burmese, Bangladeshi, Nepalese, 
                        Indonesian, Malaysian, American Indian and 
                        Alaska Native, Native Hawaiian, Samoan, 
                        Chamorro, Tongan, iTaukei, Marshallese, and 
                        Other Pacific Islander communities, all 
                        mortgage loans originated by the financial 
                        institution under such program that are made 
                        for the purpose of a home purchase or to 
                        refinance a mortgage loan made for the purpose 
                        of a home purchase.
                    ``(B) Template.--The appropriate Federal financial 
                supervisory agencies shall, jointly, issue rules to 
                establish a template that large financial institutions 
                shall use to collect information required to be 
                collected under this paragraph.
            ``(3) Additional consideration of small dollar mortgages by 
        small and intermediate financial institutions.--
                    ``(A) In general.--As part of assessing a small or 
                intermediate financial institution under subsection 
                (a), the appropriate Federal financial supervisory 
                agency shall, at the request of the financial 
                institution, provide additional consideration of any 
                mortgages extended by the financial institution that 
                are small-dollar mortgages of $100,000 or less in value 
                that facilitate a home purchase or help a borrower to 
                refinance an existing mortgage.
                    ``(B) Rating adjustment.--If the appropriate 
                Federal financial supervisory agency planned to assign 
                a rating under section 807(b)(2) to a small or 
                intermediate financial institution of `Satisfactory 
                record of meeting community credit needs', the 
                appropriate Federal financial supervisory agency may, 
                after the additional consideration described under 
                subparagraph (A), change such rating to `Outstanding 
                record of meeting community credit needs', if the 
                appropriate Federal financial supervisory agency 
                determines such change is appropriate.
            ``(4) Definitions.--The Board of Governors of the Federal 
        Reserve System, the Comptroller of the Currency, and the 
        Federal Deposit Insurance Corporation shall, jointly, define 
        the terms `large financial institution' and `small or 
        intermediate financial institution' for purposes of this 
        subsection.''.

SEC. 8. STUDY ON DISCRIMINATION AND DISPARITIES IN ACCESS TO CREDIT.

    The Community Reinvestment Act of 1977 (12 U.S.C. 2901 et seq.) is 
amended by adding at the end the following:

``SEC. 810. STUDY ON DISCRIMINATION AND DISPARITIES IN ACCESS TO 
              CREDIT.

    ``(a) Study.--Not later than the end of the 2-year period beginning 
on the date of enactment of this section, and every 2 years thereafter, 
the appropriate Federal financial supervisory agencies shall, jointly, 
and in consultation with such other Federal or State agencies as the 
appropriate Federal financial supervisory agencies determine 
appropriate, complete an interagency statistical study to identify 
metropolitan areas and rural counties that either experience ongoing 
discrimination or exhibit significant racial disparities in access to 
credit for any racial or ethnic group.
    ``(b) Use of Data.--In carrying out each study required under 
subsection (a), the appropriate Federal financial supervisory agencies 
shall make use of--
            ``(1) data obtained under the Home Mortgage Disclosure Act 
        of 1975;
            ``(2) data obtained under section 704B of the Equal Credit 
        Opportunity Act;
            ``(3) available State data; and
            ``(4) information contained in public litigation against 
        regulated financial institutions for redlining or lending 
        discrimination (including litigation initiated by the Bureau of 
        Consumer Financial Protection, the Department of Housing and 
        Urban Affairs, the Department of Justice, or by private 
        parties).
    ``(c) Report.--Upon the completion of each study required under 
subsection (a), the appropriate Federal financial supervisory agencies 
shall, jointly, issue a report to the Committee on Financial Services 
of the House of Representatives and the Committee on Banking, Housing, 
and Urban Affairs of the Senate, containing--
            ``(1) all findings and determinations made in carrying out 
        the study; and
            ``(2) policy recommendations to remedy the discrimination 
        and disparities identified in the study.''.
                                 <all>
Making Communities Stronger through the Community Reinvestment Act
To amend the Community Reinvestment Act of 1977 to improve the assessment process for financial institutions under that Act, and for other purposes.
Making Communities Stronger through the Community Reinvestment Act
Rep. Waters, Maxine