Bill · H.R. 166· House(119-HR-166)
Fair Lending for All Act
- Introduced
- 1/3/2025
- Last activity
- 1/3/2025 — Referred to the House Committee on Financial Services.
- Sponsored by
- Al Green
- Cosponsors
- - 1 - 0
- Introduced
- In Committee
What this bill would do
The Fair Lending for All Act seeks to strengthen the Equal Credit Opportunity Act through several new measures. It establishes an Office of Fair Lending Testing within the Bureau of Consumer Financial Protection to conduct compliance testing using individuals posing as borrowers. The bill expands the legal definition of discrimination to include ZIP Codes, census tracts, and public assistance income. It also broadens the definition of an "aggrieved person" to include those who believe they will be injured by discriminatory practices. Furthermore, the act introduces significant criminal penalties for those who knowingly and willfully violate the law. Finally, it mandates reviews of loan application processes and expands mortgage data collection requirements.
Yes· 3 of 10
Would households on low incomes be better off under this?+7
The bill prohibits discrimination based on income derived from public assistance programs.
Does this give people more protection from unfair business practices?+7
The bill expands legal protections against discrimination in credit transactions and establishes a new testing office to ensure compliance.
Would LGBTQ people be better off under this?+6
The bill explicitly protects against discrimination based on sexual orientation and gender identity in credit transactions.
The opposite
Would business owners be better off under this?-6
The bill introduces significant criminal penalties and personal liability for company executives and directors.
Who it would affect, and how
Potential Positive Impacts for People
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Increased Oversight and Testing: The creation of an Office of Fair Lending Testing allows for active compliance checks where individuals pose as prospective borrowers to gather information on creditor practices (Section 2).
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Expanded Protections Against Discrimination: The bill expands the list of prohibited bases for discrimination to include a person's ZIP Code, census tract, or if their income comes from a public assistance program (Section 3).
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Broader Ability to Seek Relief: The definition of an "aggrieved person" is expanded to include individuals who believe they will be injured by a discriminatory credit practice, not just those who have already been injured (Section 3).
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Enhanced Accountability via Criminal Penalties: The act establishes criminal penalties, including fines and imprisonment, for individuals who knowingly and willfully violate the law (Section 4).
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Personal Liability for Leaders: Executive officers and directors can be held personally liable and face fines based on their compensation if they cause an entity to engage in a pattern or practice of violations (Section 4).
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Proactive Process Reviews: The Bureau is authorized to review loan application processes to ensure they do not violate federal consumer financial laws, with the power to prohibit the use of illegal processes (Section 5).
Potential Negative Impacts for People
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Criminal Risks for Individuals and Executives: Violators face significant burdens, including fines of up to $50,000 or 1 year in prison for individual violations, and much higher penalties—including up to 20 years in prison—for those engaging in a pattern or practice of violations (Section 4).
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Financial Burdens on Leadership: Executive officers and directors may face fines up to 100 percent of the compensation they received during the time violations occurred or in the three years preceding the discovery of the violations (Section 4).
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Restrictions on Business Processes: The Bureau has the authority to prohibit covered persons from using specific loan applications or processes if it determines they violate the law (Section 5).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Low Income Households+7Good For L G B T Q Community+6Good For African Americans+5Good For Hispanic Americans+5Good For Seniors+3Good For Business Owners-6
- Social Issues And Justice
- Improves Racial Equity+6Improves Gender Equality+5Improves Poverty Reduction+4
- Economy And Finance
- Improves Consumer Protection+7
- Governance And Ideology
- Improves Government Transparency+5
- 8/31/2026
- 1 Cosponsor added.
- 1/3/2025
- Referred to the House Committee on Financial Services.
- Introduced in House
Rashida TlaibDemocrat · Michigan