[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1151 Introduced in House (IH)]
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117th CONGRESS
1st Session
H. R. 1151
To establish a Consumer Protection Relief Fund to empower lenders to
deploy credit to vulnerable borrowers needing access to credit as a
result of the COVID-19 pandemic.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 18, 2021
Mr. Lynch introduced the following bill; which was referred to the
Committee on Financial Services
_______________________________________________________________________
A BILL
To establish a Consumer Protection Relief Fund to empower lenders to
deploy credit to vulnerable borrowers needing access to credit as a
result of the COVID-19 pandemic.
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 ``Consumer Protection Relief Fund
Act'' or the ``CPR Fund Act''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the CDFI Fund.
(2) CDFI fund.--The term ``CDFI Fund'' means the Community
Development Financial Institutions Fund.
(3) Closed-end installment loan.--The term ``closed-end
installment loan''--
(A) means a loan--
(i) extended at a set amount; and
(ii) repaid by the borrower with a fixed
amount over a limited number of payment
periods; and
(B) does not include a student, auto, or mortgage
loan.
(4) Fund.--The term ``Fund'' means the Consumer Protection
Relief Fund established under section 3.
(5) Covered amount.--
(A) In general.--With respect to a qualified loan,
the term ``covered amount'' means--
(i) 95 percent of the outstanding principal
balance and accrued interest on the loan (not
including any late payment or other fees
charged to the loan), minus
(ii) any previously charged fees above 36
percent of the annual percentage rate.
(B) Calculation of apr.--For purposes of
subparagraph (A), the annual percentage rate shall be
calculated using the method provided under section
232.4(c) of title 32, Code of Federal Regulations, for
the calculation of the military annual percentage rate.
(6) Qualified loan.--The term ``qualified loan'' means an
extension of a closed-end installment loan--
(A) to a vulnerable borrower;
(B) with respect to which the borrower has made an
attestation to the holder of the loan that the borrower
is experiencing financial difficulty in repaying the
loan due to the impact of COVID-19; and
(C) under which the loan terms--
(i) do not contain negative amortization,
interest-only payments, or balloon payments;
(ii) do not provide for an automatic
renewal; and
(iii) do not contain a prepayment penalty.
(7) Vulnerable borrower.--The term ``vulnerable borrower''
means a consumer who--
(A) has an income that is 80 percent or less of the
median income for the area in which the consumer lives;
(B) has--
(i) a FICO score under 675;
(ii) an adjusted gross income of--
(I) $75,000, or less, in the case
of an individual tax return filer;
(II) $150,000, or less, in the case
of a joint return filer; or
(III) $112,500, or less, in the
case of an individual filing as a head
of household;
(C) attests to the holder of a qualified loan that
the consumer is unemployed; or
(D) is a seasonal or temporary worker.
SEC. 3. CPR FUND.
(a) Establishment.--There is established the Consumer Protection
Relief Fund, which shall be used by the Administrator to make payments
to holders of qualified loans under section 4.
(b) Use of Outside Entities.--In carrying out this Act, the
Administrator may--
(1) consult with other agencies of the Federal Government;
and
(2) enter into contracts with private sector entities, at
reasonable or market rates.
(c) Rulemaking.--The Administrator shall issue such rules as may be
necessary to carry out this Act.
(d) Funding.--
(1) Appropriation.--There is appropriated to the Fund, out
of any amounts in the Treasury not otherwise appropriated, for
the fiscal year ending September 30, 2021, to remain available
until September 30, 2022, $10,000,000,000 for the cost of
making payments to holders of qualified loans under this Act
and the cost of administering this Act.
(2) Use of funds after the program.--
(A) In general.--Any amounts appropriated under
paragraph (1) that have not been obligated by the date
described under subparagraph (B) shall be transferred
to the CDFI Fund and used by the Administrator to--
(i) extend or promote access to responsible
lending;
(ii) develop technology resources;
(iii) hire necessary staff; or
(iv) extend credit to community development
financial institutions.
(B) Date.--The date described in this subparagraph
is the later of--
(i) December 31, 2021; and
(ii) the date on which the Administrator
determines that the national unemployment rate
has been 8 percent or less for a period of 90
days.
SEC. 4. PAYMENTS WITH RESPECT TO QUALIFIED LOANS.
(a) In General.--The Administrator shall make payments to holders
of qualified loans--
(1) upon submission of the qualified loans to the
Administrator; and
(2) after the Administrator determines such loans are
compliant with this Act.
(b) Limitations on Amount.--
(1) Maximum amount.--The amount of a payment described
under subsection (a) shall not exceed the covered amount.
(2) Aggregate limitation per individual.--The aggregate
amount of payments made under this Act with respect to a single
vulnerable borrower may not exceed $9,500.
(c) Requirements on Holders of Qualified Loans.--
(1) Administrator fee.--With respect to any payments to
holders of a qualified loan under this Act, the Administrator
shall charge the holders of the loan a fee equal to 5 percent
of the outstanding principal and interest due on the loan at
the time the payment is made.
(2) Requirements before payment.--No person may receive a
payment under this Act with respect to a qualified loan unless
they comply with the following:
(A) At the time of the payment, the person commits
to issuing or purchasing other qualified loans in an
amount that is at least equal in value to the amount of
such payment received.
(B) The person forgives the remaining balance on
the loan, along with any late fees or other fees
related to the loan.
(C) The person terminates any negative reporting to
consumer reporting agencies with respect to the loan.
(D) With respect to the borrower of the qualified
loan, if the borrower applies for an extension of
credit in the future, the person shall not take the
borrower's performance on the qualified loan into
consideration for purposes of performing underwriting
for such application.
(E) The person provides for either forbearance or
deferral options for distressed borrowers.
SEC. 5. NOTIFICATION TO BORROWER BEFORE CERTAIN TRANSFERS OF OR
COLLECTIONS ON A QUALIFIED LOAN.
(a) In General.--With respect to any qualified loan (regardless of
whether a payment is made with respect to the qualified loan under this
Act), the holder of the qualified loan may not sell or otherwise
transfer the loan, or attempt to collect on the loan if it is in
default or delinquency, unless the holder has notified the borrower of
the possibility of a payment under this Act.
(b) Termination.--This section shall have no force or effect after
the date described under section 3(d)(2)(B).
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