Bill Summary
The Examining Educational Redlining in Lending Act requires the Bureau of Consumer Financial Protection to assess the use of educational data in determining an individual's creditworthiness. This includes evaluating the use of data in creating applicant profiles and potential risks associated with its use, as well as ensuring that decisions do not result in discrimination against protected classes. The Bureau must report its findings to Congress and make them publicly available. The Act also provides definitions for key terms used in the assessment and applies to all covered persons as defined in the Consumer Financial Protection Act of 2010.
Possible Impacts
1. The legislation could affect individuals who have attended or are currently attending an academic institution, as their educational data may be used to determine their creditworthiness and affect their ability to obtain loans.
2. The legislation could also impact individuals who have attended or are attending junior or community colleges, as their data may be used in the underwriting process to determine their creditworthiness and potential loan options.
3. The legislation could potentially protect individuals from discrimination or disparate impact on the basis of their educational background, as the Bureau will assess and report on the use of certain educational data and any potential risks for protected classes.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8039 Introduced in House (IH)]
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116th CONGRESS
2d Session
H. R. 8039
To require the Bureau of Consumer Financial Protection to conduct an
assessment of the use of certain educational data in determining the
creditworthiness of an applicant, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
August 14, 2020
Ms. Fudge (for herself and Mrs. Beatty) introduced the following bill;
which was referred to the Committee on Financial Services
_______________________________________________________________________
A BILL
To require the Bureau of Consumer Financial Protection to conduct an
assessment of the use of certain educational data in determining the
creditworthiness of an applicant, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Examining Educational Redlining in
Lending Act''.
SEC. 2. ASSESSMENT OF CERTAIN EDUCATIONAL DATA.
(a) Assessment.--Not later than 180 days after the date of the
enactment of this Act and annually thereafter, the Bureau of Consumer
Financial Protection (referred to in this section as the ``Bureau'')
shall, in coordination with relevant executive agencies and national
civil rights stakeholders, assess--
(1) the use of certain educational data by covered persons
in determining the creditworthiness of an applicant;
(2) the use of an underwriting process that involves
gathering data points and creating applicant profiles,
including automated or algorithmic processes, and the risks of
such use, by covered persons to determine the creditworthiness
of an applicant; and
(3) what policies and guidelines are in place to ensure
decisions do not result in a disparate impact on a protected
class.
(b) Report to Congress.--Not later than 60 days after the
completion of each assessment required under subsection (a) and
annually thereafter, the Bureau shall submit to the Committee on
Financial Services of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate the findings of such
assessment and any recommendations based on such findings.
(c) Publication.--Not later than 30 days after the completion of
the assessment required under subsection (a), the Bureau shall make
available on a publicly accessible website--
(1) the findings of the assessment under subsection (a);
(2) a list of all covered persons that use certain
educational data; and
(3) a list of all covered persons that use an underwriting
process that involves gathering data points and creating
applicant profiles, including automated or algorithmic
processes, to determine the creditworthiness of an applicant.
(d) Definitions.--In this section:
(1) Applicant's background.--The term ``applicant's
background'' includes data related to or derived from the
following:
(A) Attendance at an academic institution.
(B) Academic majors pursued at an academic
institution.
(C) Grades or test scores from or used for
admission into an academic institution.
(D) Educational attainment.
(2) Certain educational data.--The term ``certain
educational data'' means data, including non-individualized
data, that indicates or is created, derived, or inferred from
an applicant's background including whether an applicant has
attended any of the following:
(A) An eligible institution.
(B) A junior or community college.
(3) Covered person.--The term ``covered person'' has the
meaning given such term in section 1002 of the Consumer
Financial Protection Act of 2010 (12 U.S.C. 5481).
(4) Eligible institution.--The term ``eligible
institution'' has the meaning given that term in section 371(a)
of the Higher Education Act of 1965 (20 U.S.C. 1067q(a)).
(5) Junior or community college.--The term ``junior or
community college'' has the meaning given that term in section
312(f) of the Higher Education Act of 1965 (20 U.S.C. 1058(f)).
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