Proposed Bills – Examples of Special Purpose Credits

HR 166- Fair Lending for All Act -Sponsored by Congressman Al Green – 117th Congress (2021-2022)

This bill modifies provisions to prohibit credit discrimination. Minorities that are more qualified and educated than whites often receive higher interest rates and less funding. This law makes it a crime to discriminate in lending. 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. 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.

HR123 – Alternative Data for Additional Credit FHA Pilot Program Reauthorization Act – Sponsored

by Congressman Al Green – 117th Congress (2021-2022)

Many people pay higher rent and utilities than if they paid a mortgage and utilities. The use of alternative credit data will allow more people to qualify for a mortgage to purchase a home and build equity. The bill establishes a pilot program for an additional credit rating system for use by mortgage lenders. Specifically, the program utilizes one of the more commercially available credit scoring models that apply additional credit information about borrowers who have insufficient credit histories for purposes of determining their creditworthiness for mortgages insured by the Federal Housing Administration.