House Financial Services Committee Considers Proposed Legislation On Diversity And Equity

The U.S. House Financial Services Committee (the "Committee") considered 26 bills that are intended to create equity for people and communities of color in the financial services industry. The various bills reflect efforts to remove barriers and biases that limit access to (i) capital, credit and financial services, (ii) fair housing and homeownership, and (iii) leadership opportunities in executive ranks and on boards.

At a hearing titled, "Justice for All: Achieving Racial Equity Through Fair Access to Housing and Financial Services," the Committee considered:

• H.R. 123, the "Alternative Data for Additional Credit FHA Pilot Program Reauthorization Act," which would authorize a pilot program under the Federal Housing Administration to permit additional data in credit scoring systems for borrowers without sufficient credit histories;
• H.R. 1277, the "Improving Corporate Governance Through Diversity Act," which would require issuers to annually disclose "data, based on voluntary self-identification, on the racial, ethnic, and gender composition of" the board of directors, nominees for the board of directors and executive officers;
• H.R. 166, the "Fair Lending for All Act," which would, as previously covered, (i) establish an Office of Fair Lending Testing within the CFPB charged with testing creditors' compliance with the Equal Credit Opportunity Act ("ECOA") and (ii) expand the scope of ECOA to prohibit discrimination on the basis of an applicant's zip code or census tract;
• H.R. 281, the "Ensuring Diverse Leadership Act of 2019," which would require the Federal Reserve Bank, "in making the appointment of a president, to interview at least one individual reflective of gender diversity and one individual reflective of racial or ethnic diversity"; and
• H.R. 68, the "Housing Fairness Act of 2021," which would, among other things, (i) increase funding for the Fair Housing Initiatives Program and (ii) create a competitive matching grant program for nonprofit organizations conducting studies regarding housing discrimination and segregation.

Primary Sources

1. U.S. House Financial Services Committee Hearing: Justice for All - Achieving Racial Equity through Fair Access to Housing and Financial Services
2. U.S. House Financial Services Committee Press Release: Waters at Racial Equity Hearing - Institutional Racism Has Led to the Exclusion of Communities of Color from Housing and Financial Services
3. U.S. House Financial Services Committee Memorandum: Justice for All - Achieving Racial Equity through Fair Access to Housing and Financial Services
4. H.R. 123, the "FHA Additional Credit Pilot Program Reauthorization Act"
5. H.R. 1277, the "Improving Corporate Governance through Diversity Act"
6. H.R. 166, the "Fair Lending for All Act"
7. H.R. 281, the "Ensuring Diverse Leadership of 2019"
8. H.R. 68, the "Housing Fairness Act of 2021"

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