Bill 118 hr 10316, also known as the Equal Credit Opportunity Act Amendment, aims to make changes to the Equal Credit Opportunity Act in order to ensure that creditors take into account certain additional credit information when determining eligibility for mortgage loans. The bill seeks to address potential disparities in access to credit by requiring creditors to consider factors beyond traditional credit scores, such as rental payment history, utility bill payments, and other non-traditional forms of credit.
The purpose of this amendment is to provide a more comprehensive and inclusive assessment of an individual's creditworthiness, particularly for those who may not have a long credit history or who have faced financial challenges in the past. By expanding the types of information that creditors must consider, the bill aims to increase access to mortgage loans for a wider range of borrowers, ultimately promoting greater financial inclusion and opportunity.
In addition to requiring creditors to consider additional credit information, the bill also includes provisions for reporting requirements and enforcement mechanisms to ensure compliance with the new regulations. Overall, the Equal Credit Opportunity Act Amendment seeks to modernize and improve the credit evaluation process for mortgage loans, with the goal of promoting fairness and equal access to credit for all individuals.