Community Reinvestment Modernization Act of 2001

H.R. 865, the Community Reinvestment Modernization Act of 2001, sought to expand the scope of the Community Reinvestment Act (CRA) to ensure that a broader range of financial institutions meet the needs of low- and moderate-income neighborhoods. The bill would have required nonbank affiliates of bank holding companies—including insurance, securities, and mortgage companies—to demonstrate that they are providing fair access to their services in underserved communities.

For the average citizen, this legislation aimed to increase transparency and accountability in lending and insurance practices by requiring companies to report data on the race, gender, and location of their customers. By penalizing "predatory" lending practices and prohibiting companies with poor community service ratings from expanding their business activities, the bill intended to prevent redlining and ensure more equitable access to home loans, small business capital, and insurance products.