Strengthening Communities: New Rules for Banks and Lending.
This act aims to improve how banks and financial institutions assess their community engagement, especially in low-income areas. It introduces new reporting requirements and mandates greater involvement in local needs, alongside penalties for discriminatory practices. Citizens can expect increased financial support in their neighborhoods and better access to credit.
Key points
Banks must demonstrate that their charitable and community service activities genuinely benefit low- and moderate-income neighborhoods and groups, such as small businesses or Native communities.
Financial institutions will face penalties for any illegal or discriminatory actions that harm residents, particularly those in low-income areas.
Large banks will be required to form local Community Advisory Committees with diverse stakeholders to better understand and address local financial needs.
The act promotes small mortgage lending and loans for small farms and businesses, including partnerships with non-depository lenders.
Mandatory data collection on mortgage loans, including borrower demographics, is introduced to identify and combat discrimination in credit access.
Expired
Citizen Poll