Text: H.R.5743 — 111th Congress (2009-2010)All Information (Except Text)

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Introduced in House (07/15/2010)


111th CONGRESS
2d Session
H. R. 5743


To amend the Fair Credit Reporting Act to prohibit the furnishing of certain negative loan modification information to a consumer reporting agency and to prohibit such information from being used in computing a consumer’s credit score.


IN THE HOUSE OF REPRESENTATIVES

July 15, 2010

Ms. Speier (for herself, Mr. Miller of North Carolina, Mr. George Miller of California, and Mr. Frank of Massachusetts) introduced the following bill; which was referred to the Committee on Financial Services


A BILL

To amend the Fair Credit Reporting Act to prohibit the furnishing of certain negative loan modification information to a consumer reporting agency and to prohibit such information from being used in computing a consumer’s credit score.

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 “Protecting Homeowners’ Credit History Act of 2010”.

SEC. 2. Furnishing of certain loan modification information prohibited.

Section 623 of the Fair Credit Reporting Act (15 U.S.C. 1681s–2) is amended by adding at the end the following new subsection:

“(f) Furnishing of certain loan modification information prohibited.—A person shall not furnish to a consumer reporting agency any negative information regarding or resulting from the modification of the terms of a consumer loan that is secured by 1 to 4 units of residential real property, including any agreement to reduce the amount of the payments for the loan or to reduce the principal amount of such loan, whether or not such modification is on a permanent, temporary, or trial basis.”.

SEC. 3. Requirements relating to information used to calculate credit scores.

The Fair Credit Reporting Act is further amended by inserting after section 605B the following new section:

“SEC. 605C. Requirements relating to information used to calculate credit scores.

“(a) Prohibition.—A person shall not, in calculating any credit score of a consumer, produce a less favorable credit score on the basis of any information regarding or resulting from the modification of the terms of a consumer loan that is secured by 1 to 4 units of residential real property, including any agreement to reduce the amount of the payments for the loan or to reduce the principal amount of such loan, whether or not such modification is on a permanent, temporary, or trial basis.

“(b) Definition.—For purposes of this section, the term ‘credit score’ means a numerical value or a categorization derived from a statistical tool or modeling system used by a person who makes or arranges a loan to predict the likelihood of certain credit behaviors, including default.”.

SEC. 4. Effective date.

The amendments made by this Act shall take effect after the 90-day period beginning on the date of the enactment of this Act.