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6500 - Consumer Protection


HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1977—TITLE VIII (COMMUNITY REINVESTMENT)

AN ACT

To amend certain Federal laws pertaining to community development, housing, and related programs.

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

TITLE VIII—COMMUNITY REINVESTMENT

SEC. 801.  This title may be cited as the "Community Reinvestment Act of 1977".

[Codified to 12 U.S.C. 2901 note]

[Source:  Section 801 of title VIII of the Act of October 12, 1977 (Pub. L. No. 95--128; 91 Stat. 1147), effective October 12, 1977]

SEC. 802.  CONGRESSIONAL AND STATEMENT OF PURPOSE.

(a)  The Congress finds that--

(1)  regulated financial institutions are required by law to demonstrate that their deposit facilities serve the convenience and needs of the communities in which they are chartered to do business;

(2)  the convenience and needs of communities include the need for credit services as well as deposit services; and

(3)  regulated financial institutions have continuing and affirmative obligation to help meet the credit needs of the local communities in which they are chartered.

(b)  It is the purpose of this title to require each appropriate Federal financial supervisory agency to use its authority when examining financial institutions, to encourage such institutions to help meet the credit needs of the local communities in which they are chartered consistent with the safe and sound operation of such institutions.

[Codified to 12 U.S.C. 2901]

[Source:  Section 802 of title VIII of the Act of October 12, 1977 (Pub. L. No. 95--128; 91 Stat. 1147), effective October 12, 1977]

SEC. 803.  DEFINITIONS.

For the purpose of this title--

(1)  the term "appropriate Federal financial supervisory agency" means--

(A)  the Comptroller of the Currency with respect to national banks and Federal savings associations (the deposits of which are insured by the Federal Deposit Insurance Corporation);

(B)  the Board of Governors of the Federal Reserve System with respect to State chartered banks which are members of the Federal Reserve System, bank holding companies, and savings and loan holding companies;

(C)  the Federal Deposit Insurance Corporation with respect to State chartered banks and savings banks which are not members of the Federal Reserve System and the deposits of which are insured by the Corporation, and State savings associations (the deposits of which are insured by the Federal Deposit Insurance Corporation).

(2)  the term "regulated financial institution" means an insured depository institution (as defined in section 3 of the Federal Deposit Insurance Act);

(3)  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)  a charter for a national bank or Federal savings and loan association;

(B)  deposit insurance in connection with a newly chartered State bank, savings bank, savings and loan association or similar institution;

(C)  the establishment of a domestic branch or other facility with the ability to accept deposits of a regulated financial institution;

(D)  the relocation of the home office or a branch office of a regulated financial institution;

(E)  the merger or consolidation with, or the acquisition of the assets, or the assumption of the liabilities of a regulated financial institution requiring approval under section 18(c) of the Federal Deposit Insurance Act or under regulations issued under the authority of title IV of the National Housing Act; or

(F)  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 or section 408(e) of the National Housing Act.

(4)  A financial institution whose business predominately consists of serving the needs of military personnel who are not located within a defined geographic area may define its "entire community" to include its entire deposit customer base without regard to geographic proximity.

[Codified to 12 U.S.C. 2902]

[Source:  Section 803 of title VIII of the Act of October 12, 1977 (Pub. L. No. 95--128; 91 Stat. 1147), effective October 12, 1977; as amended by section 1502 of title XV of the Act of November 10, 1978 (Pub. L. No. 95--630; 92 Stat. 3713), effective November 10, 1978; and sections 744(q) of title VII and 1212(a) of title XII of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 440 and 526, respectively), effective August 9, 1989; section 358(1) of title III of the Act of July 21, 2010 (Pub. L. No. 111--203; 124 Stat. 1548), effective July 21, 2010]

SEC. 804.  FINANCIAL INSTITUTIONS; EVALUATION.

(a)  IN GENERAL.--In connection with its examination of a financial institution, the appropriate Federal financial supervisory agency shall--

(1)  assess the institution's record of meeting the credit needs of its entire community, including low- and moderate-income neighborhoods, consistent with the safe and sound operation of such institution; and

(2)  take such record into account in its evaluation of an application for a deposit facility by such institution.

(b)  MAJORITY-OWNED INSTITUTIONS.--In assessing and taking into account, under subsection (a), the record of a nonminority-owned and nonwomen-owned financial institution, the appropriate Federal financial supervisory agency may consider as a factor capital investment, loan participation, and other ventures undertaken by the institution in cooperation with minority- and women-owned financial institutions and low-income credit unions provided that these activities help meet the credit needs of local communities in which such institutions and credit unions are chartered.

(c)  FINANCIAL HOLDING COMPANY REQUIREMENT.--

(1)  IN GENERAL.--An election by a bank holding company to become a financial holding company under section 4 of the Bank Holding Company Act of 1956 shall not be effective if--

(A)  the Board finds that, as of the date the declaration of such election and the certification is filed by such holding company under section 4(l)(1)(C) of the Bank Holding Company Act of 1956, not all of the subsidiary insured depository institutions of the bank holding company had achieved a rating of "satisfactory record of meeting community credit needs", or better, at the most recent examination of each such institution; and

(B)  the Board notifies the company of such finding before the end of the 30-day period beginning on such date.

(2)  LIMITED EXCLUSIONS FOR NEWLY ACQUIRED INSURED DEPOSITORY INSTITUTIONS.--Any insured depository institution acquired by a bank holding company during the 12-month period preceding the date of the submission to the Board of the declaration and certification under section 4(l)(1)(C) of the Bank Holding Company Act of 1956 may be excluded for purposes of paragraph (1) during the 12-month period beginning on the date of such acquisition if--

(A)  the bank holding company has submitted an affirmative plan to the appropriate Federal financial supervisory agency to take such action as may be necessary in order for such institution to achieve a rating of "satisfactory record of meeting community credit needs", or better, at the next examination of the institution; and

(B)  the plan has been accepted by such agency.

(3)  DEFINITIONS.--For purposes of this subsection, the following definitions shall apply:

(A)  BANK HOLDING COMPANY; FINANCIAL HOLDING COMPANY.--The terms "bank holding company" and "financial holding company" have the meanings given those terms in section 2 of the Bank Holding Company Act of 1956.

(B)  BOARD.--The term "Board" means the Board of Governors of the Federal Reserve System.

(C)  INSURED DEPOSITORY INSTITUTION.--The term "insured depository institution" has the meaning given the term in section 3(c) of the Federal Deposit Insurance Act.

(d)  LOW-COST EDUCATION LOANS--In assessing and taking into account, under subsection (a), the record of a financial institution, the appropriate Federal financial supervisory agency shall consider, as a factor, low-cost education loans provided by the financial institution to low-income borrowers.

[Codified to 12 U.S.C. 2903]

[Source:  Section 804 of title VIII of the Act of October 12, 1977 (Pub. L. No. 95--128; 91 Stat. 1148), effective October 12, 1977; as amended by section 909(1) of title IX of the Act of October 28, 1992 (Pub. L. No. 102--550; 106 Stat. 3874), effective October 28, 1992; section 103(b) of title I of the Act of November 12, 1999 (Pub. L. No. 106--102; 113 Stat. 1351), effective March 12, 2000; section 1031(a) of title X of the Act of August 14, 2008 (Pub. L. No. 110--315; 122 Stat. 3488), effective August 14, 2008]

SEC. 805.  REPORT TO CONGRESS.

Each appropriate Federal financial supervisory agency shall include in its annual report to the Congress a section outlining the actions it has taken to carry out its responsibilities under this title.

[Codified to 12 U.S.C. 2904]

[Source:  Section 805 of title VIII of the Act of October 12, 1977 (Pub. L. No. 95--128; 91 Stat. 1148), effective October 12, 1977]

SEC. 806.  REGULATIONS.

Regulations to carry out the purposes of this title shall be published by each appropriate Federal financial supervisory agency, except that the Comptroller of the Currency shall prescribe regulations applicable to savings associations and the Board of Governors shall prescribe regulations applicable to insured State member banks, bank holding companies and savings and loan holding companies, and shall take effect no later than 390 days after the date of enactment of this title.

[Codified to 12 U.S.C. 2905]

[Source:  Section 806 of title VIII of the Act of October 12, 1977 (Pub. L. No. 95--128; 91 Stat. 1148), effective October 12, 1977; section 358(2) of title III of the Act of July 21, 2010 (Pub. L. No. 111--203; 124 Stat. 1548), effective July 21, 2010]

SEC. 807.  WRITTEN EVALUATIONS.

(a)  REQUIRED.--

(1)  IN GENERAL.--Upon the conclusion of each examination of an insured depository institution under section 804, the appropriate Federal financial supervisory agency shall prepare a written evaluation of the institution's record of meeting the credit needs of its entire community, including low- and moderate-income neighborhoods.

(2)  PUBLIC AND CONFIDENTIAL SECTIONS.--Each written evaluation required under paragraph (1) shall have a public section and a confidential section.

(b)  PUBLIC SECTION OF REPORT.--

(1)  FINDINGS AND CONCLUSIONS.--

(A)  CONTENTS OF WRITTEN EVALUATION.--The public section of the written evaluation shall--

(i)  state the appropriate Federal financial supervisory agency's conclusions for each assessment factor identified in the regulations prescribed by the Federal financial supervisory agencies to implement this Act;

(ii)  discuss the facts and data supporting such conclusions; and

(iii)  contain the institution's rating and a statement describing the basis for the rating.

(B)  Metropolitan area distinctions.--The information required by clauses (i) and (ii) of subparagraph (A) shall be presented separately for each metropolitan area in which a regulated depository institution maintains one or more domestic branch offices.

(2)  ASSIGNED RATING.--The institution's rating referred to in paragraph (1)(C) shall be 1 of the following:

(A)  "Outstanding record of meeting community credit needs."

(B)  "Satisfactory record of meeting community credit needs."

(C)  "Needs to improve record of meeting community credit needs."

(D)  "Substantial noncompliance in meeting community credit needs."

Such ratings shall be disclosed to the public on and after July 1, 1990.

(c)  CONFIDENTIAL SECTION OF REPORT.--

(1)  PRIVACY OF NAMED INDIVIDUALS.--The confidential section of the written evaluation shall contain all references that identify any customer of the institution, any employee or officer of the institution, or any person or organization that has provided information in confidence to a Federal or State financial supervisory agency.

(2)  Topics not suitable for disclosure.--The confidential section shall also contain any statements obtained or made by the appropriate Federal financial supervisory agency in the course of an examination which, in the judgment of the agency, are too sensitive or speculative in nature to disclose to the institution or the public.

(3)  DISCLOSURE TO DEPOSITORY INSTITUTION.--The confidential section may be disclosed, in whole or in part, to the institution, if the appropriate Federal financial supervisory agency determines that such disclosure will promote the objectives of this Act. However, disclosure under this paragraph shall not identify a person or organization that has provided information in confidence to a Federal or State financial supervisory agency.

(d)  INSTITUTIONS WITH INTERSTATE BRANCHES.--

(1)  STATE-BY-STATE EVALUATION.--In the case of a regulated financial institution that maintains domestic branches in 2 or more States, the appropriate Federal financial supervisory agency shall prepare--

(A)  a written evaluation of the entire institution's record of performance under this title, as required by subsections (a), (b), and (c); and

(B)  for each State in which the institution maintains 1 or more domestic branches, a separate written evaluation of the institution's record of performance within such State under this title, as required by subsections (a), (b), and (c).

(2)  MULTISTATE METROPOLITAN AREAS.--In the case of a regulated financial institution that maintains domestic branches in 2 or more States within a multistate metropolitan area, the appropriate Federal financial supervisory agency shall prepare a separate written evaluation of the institution's record of performance within such metropolitan area under this title, as required by subsections (a), (b), and (c). If the agency prepares a written evaluation pursuant to this paragraph, the scope of the written evaluation required under paragraph (1)(B) shall be adjusted accordingly.

(3)  CONTENT OF STATE LEVEL EVALUATION.--A written evaluation prepared pursuant to paragraph (1)(B) shall--

(A)  present the information required by subparagraphs (A) and (B) of subsection (b)(1) separately for each metropolitan area in which the institution maintains 1 or more domestic branch offices and separately for the remainder of the nonmetropolitan area of the State if the institution maintains 1 or more domestic branch offices in such nonmetropolitan area; and

(B)  describe how the Federal financial supervisory agency has performed the examination of the institution, including a list of the individual branches examined.

(e)  DEFINITIONS.--For purposes of this section the following definitions shall apply:

(1)  DOMESTIC BRANCH.--The term "domestic branch" means any branch office or other facility of a regulated financial institution that accepts deposits, located in any State.

(2)  METROPOLITAN AREA.--The term "metropolitan area" means any primary metropolitan statistical area, metropolitan statistical area, or consolidated metropolitan statistical area, as defined by the Director of the Office of Management and Budget, with a population of 250,000 or more, and any other area designated as such by the appropriate Federal financial supervisory agency.

(3)  STATE.--The term "State" has the same meaning as in section 3 of the Federal Deposit Insurance Act.

[Codified to 12 U.S.C. 2906]

[Source:  Section 807 of title VIII of the Act of October 12, 1977 (Pub. L. No. 95--128; 91 Stat. 1147), effective October 12, 1977, as added by section 1212(b) of title XII of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 526), effective August 9, 1989; amended by section 222 of title II of the Act of December 19, 1991 (Pub. L. No. 102--242; 105 Stat. 2306), effective December 19, 1991; section 110 of title I of the Act of September 29, 1994 (Pub. L. No. 103--328; 108 Stat. 2364), effective September 29, 1994]

SEC. 808.  OPERATION OF BRANCH FACILITIES BY MINORITIES AND WOMEN.

(a)  IN GENERAL.--In the case of any depository institution which donates, sells on favorable terms (as determined by the appropriate Federal financial supervisory agency), or makes available on a rent-free basis any branch of such institution which is located in any predominantly minority neighborhood to any minority depository institution or women's depository institution, the amount of the contribution or the amount of the loss incurred in connection with such activity may be a factor in determining whether the depository institution is meeting the credit needs of the institution's community for purposes of this title.

(b)  DEFINITIONS.--For purposes of this section--

(1)  MINORITY DEPOSITORY INSTITUTION.--The term "minority institution" means a depository institution (as defined in section 3(c) of the Federal Deposit Insurance Act)--

(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.

(2)  WOMEN'S DEPOSITORY INSTITUTION.--The term "women's depository institution" means a depository institution (as defined in section 3(c) of the Federal Deposit Insurance Act)--

(A)  more than 50 percent of the ownership or control of which is held by 1 or more women;

(B)  more than 50 percent of the net profit or loss of which accrues to 1 or more women; and

(C)  a significant percentage of senior management positions of which are held by women.

(3)  MINORITY.--The term "minority" has the meaning given to such term by section 1204(c)(3) of the Financial Institutions Reform, Recovery and Enforcement Act of 1989.

[Codified to 12 U.S.C. 2907]

[Source:   Section 808 of title VIII of the Act of October 12, 1977 (Pub. L. No. 95--128; 91 Stat. 1147), effective October 12, 1977, as added by section 402(b) of title IV of the Act of December 12, 1991 (Pub. L. No. 102--233; 105 Stat. 1775), effective December 12, 1991; as amended by section 909(2) of title IX of the Act of October 28, 1992 (Pub. L. No. 102--550; 106 Stat. 3874), effective October 28, 1992]


SEC. 809.  SMALL BANK REGULATORY RELIEF.

(a)  IN GENERAL.--Except as provided in subsections (b) and (c), any regulated financial institution with aggregate assets of not more than $250,000,000 shall be subject to routine examination under this title--

(1)  not more than once every 60 months for an institution that has achieved a rating of "outstanding record of meeting community credit needs" at its most recent examination under section 804;

(2)  not more than once every 48 months for an institution that has received a rating of "satisfactory record of meeting community credit needs" at its most recent examination under section 804; and

(3)  as deemed necessary by the appropriate Federal financial supervisory agency, for an institution that has received a rating of less than "satisfactory record of meeting community credit needs" at its most recent examination under section 804.

(b)  NO EXCEPTION FROM CRA EXAMINATIONS IN CONNECTION WITH APPLICATIONS FOR DEPOSIT FACILITIES.--A regulated financial institution described in subsection (a) shall remain subject to examination under this title in connection with an application for a deposit facility.

(c)  DISCRETION.--A regulated financial institution described in subsection (a) may be subject to more frequent or less frequent examinations for reasonable cause under such circumstances as may be determined by the appropriate Federal financial supervisory agency.

[Codified to 12 U.S.C. 2908]

[Source: Section 809 of title VIII of the Act of October 12, 1977 (Pub. L. No. 95-128; 91 Stat. 1147), effective October 12, 1997, as added by section 712 of the Act of November 12, 1997 (Pub. L. No. 106-102; 113 Stat. 1469), effective November 12, 1999]

COMPETITIVE EQUALITY BANKING ACT OF 1987

TITLE XII—MISCELLANEOUS PROVISIONS

SEC. 1204. ADJUSTABLE RATE MORTGAGE CAPS.

(a)  IN GENERAL.--Any adjustable rate mortgage loan originated by a creditor shall include a limitation on the maximum interest rate that may apply during the term of the mortgage loan.

(b)  REGULATIONS.--The Board of Governors of the Federal Reserve System shall prescribe regulations to carry out the purposes of this section.

(c)  ENFORCEMENT.--Any violation of this section shall be treated as a violation of the Truth in Lending Act and shall be subject to administrative enforcement under section 108 or civil damages under section 130 of such Act, or both.

(d)  DEFINITIONS.--For the purpose of this section--

(1)  the term "creditor" means a person who regularly extends credit for personal, family, or household purposes; and

(2)  the term "adjustable rate mortgage loan" means any loan secured by a lien on a one- to four-family dwelling unit, including a condominium unit, cooperative housing unit, or mobile home, where the loan is made pursuant to an agreement under which the creditor may, from time to time, adjust the rate of interest.

(e)  EFFECTIVE DATE.--This section shall take effect upon the expiration of 120 days after the date of enactment of this Act.

[Codified to 12 U.S.C. 3806]

[Source:  Section 1204 of title XII of the Act of August 10, 1987 (Pub. L. No. 100--86; 101 Stat. 662), effective December 8, 1987]


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