U.S. Rep. Lawrence Secures Transparency Amendment in Financial Services Racial Equity Legislation
Washington, DC - Yesterday, U.S. Representative Brenda L. Lawrence (MI-14) voted to pass H.R. 2543, the Financial Services Racial Equity, Inclusion, and Economic Justice Act, legislation to promote racial and economic justice in housing, borrowing, and lending. Rep. Lawrence secured a transparency amendment which requires various reports to include breakdowns by State (including DC and U.S. territories), Tribal areas, and, for some reports, by Congressional District.
“Disparities in opportunities, especially in the financial services sector, are harming our communities and disproportionately impacting communities of color. As a result of these significant barriers, access to housing, capital, and credit remain out of reach for so many,” said Rep. Lawrence. “The Financial Services Racial Equity, Inclusion, & Economic Justice Act takes important steps to remove those barriers, reduce costs, and invest in communities of color and other underserved communities. And I’m proud that I was able to secure an amendment that increases transparency in the way essential reporting is done.”
Key provisions in the legislative package that passed the House by a vote of 215-207 include the following:
- Requires the Federal Reserve to carry out monetary policy and its other duties in a manner that supports minimizing racial and ethnic disparities.
- Requires diversity and inclusion data disclosure from federally regulated financial firms, and requires financial institutions to take steps to combat discriminatory practices against LGBTQ+ business owners.
- Establishes language access requirements for mortgage creditors and servicers;
- Clarifies and extends anti-discrimination laws in lending to include sexual orientation and gender identity.
- Implements reforms to support minority depository institutions, community development financial institutions, minority lending institutions, “impact banks” that predominantly lend to low-income borrowers; and promotes the creation of newly chartered depository institutions to serve communities of color.
- Banking opportunities in underserved areas by allowing federal credit unions to provide services in areas not served by banks.