H.R. 166 would establish the Office of Fair Lending Testing within the Consumer Financial Protection Bureau (CFPB) to investigate and assess creditors’ compliance with the Equal Credit Opportunity Act (ECOA). The bill also would broaden ECOA protections by prohibiting creditors from discriminating on the basis of a borrower’s zip code, census tract, or other demographic characteristics. Violations discovered during those investigations would be referred to the Department of Justice (DOJ) for enforcement, and violators would face criminal penalties. The CFPB and DOJ would be required to report annually to the Congress on investigation results and any resulting criminal prosecutions.
Under current law, depository institutions must disclose to the CFPB annually the number and dollar amount of mortgages originated or purchased in the prior fiscal year. H.R. 166 would require those institutions to itemize that mortgage information based on several borrower characteristics, including zip code, religion, and marital status. The bill would require the CFPB to protect the private information of applicants and mortgagors that those institutions disclose.
