Department of Financial Protection and Innovation: loan-related activities: data analysis and practices.

Existing law establishes the Department of Financial Protection and Innovation, which is under the direction of the Commissioner of Financial Protection and Innovation. Existing law makes the department responsible for administering various laws relating to financial institutions, including banks and credit unions. Existing federal law, the Home Mortgage Disclosure Act (HMDA) , requires specified financial institutions, including certain banks, savings associations, and credit unions, to compile and make available to the public for inspection specific data about mortgage loans. Existing federal law, the Community Reinvestment Act (CRA) , also requires regulated financial institutions, as defined, to be subject to certain assessments by federal agencies to ensure those financial institutions are acting consistently to meet the credit needs of the communities in which they are chartered. This bill would require the Department of Financial Protection and Innovation to conduct an analysis of whether nonbank lenders licensed by the department are meeting the credit needs of underserved communities, as compared to depository institutions currently subject to the CRA. The bill would require the analysis to be made available to the public and posted on the department's internet website. The bill would require the department to seek information from regulators in other states that have enacted laws modeled after the CRA and analyze whether those laws have resulted in an increase in lending to underserved communities, compared to states that have not enacted similar state laws. The bill would require the above-described information and recommendations to be summarized and made available to the public and posted on the department's internet website. The bill would require the department to also review its statutory authority, regulations, and processes related to the examination of a licensee and determine whether the department has adequate authority to examine a licensee for how well the licensee meets the financial services needs of underserved communities. The bill would require the department to provide summary reports of its findings pursuant to the above provisions to the respective chairpersons of specified legislative committees. The bill would include related legislative findings.