SB 119 — An Act amending Title 7 (Banks and Banking) of the Pennsylvania Consolidated Statutes, providing for community reinvestment, for community reinvestment by banks and for community reinvestment by nonbank entities.

PRINTER'S NO.   70

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                        SENATE BILL
                        No. 119
                                                 Session of
                                                   2025

     INTRODUCED BY HUGHES, STREET, KEARNEY, COSTA, TARTAGLIONE AND
        KANE, JANUARY 22, 2025

     REFERRED TO BANKING AND INSURANCE, JANUARY 22, 2025


                                       AN ACT
 1   Amending Title 7 (Banks and Banking) of the Pennsylvania
 2      Consolidated Statutes, providing for community reinvestment,
 3      for community reinvestment by banks and for community
 4      reinvestment by nonbank entities.
 5      The General Assembly of the Commonwealth of Pennsylvania
 6   hereby enacts as follows:
 7      Section 1.    Title 7 of the Pennsylvania Consolidated Statutes
 8   is amended by adding a part to read:
 9                                    PART III
10                           COMMUNITY REINVESTMENT
11   Chapter
12      71.    Community Reinvestment by Banks
13      72.    Community Reinvestment by Nonbank Entities
14                                 CHAPTER 71
15                      COMMUNITY REINVESTMENT BY BANKS
16   Sec.
17   7101.    Definitions.
18   7102.    Duties of banks.
19   7103.    Duties of department.
 1   7104.   Community reinvestment notice.
 2   7105.   Assessment of banks.
 3   7106.   Lists of banks by department.
 4   7107.   Transaction approval.
 5   § 7101.   Definitions.
 6      The following words and phrases when used in this chapter
 7   shall have the meanings given to them in this section unless the
 8   context clearly indicates otherwise:
 9      "Bank."   A banking institution as defined under section 6102
10   (relating to definitions). The term does not include a special
11   purpose bank that does not perform commercial or retail banking
12   services in which credit is granted to the public in the
13   ordinary course of business, other than as an incident to the
14   special purpose bank's specialized operations, including, but
15   not limited to, banker's banks and banks that engage only in
16   providing cash management controlled disbursement services or
17   serving as correspondent banks, trust companies or clearing
18   agents.
19      "Community reinvestment laws."       The provisions of 12 U.S.C.
20   Ch. 30 (relating to community reinvestment), and the regulations
21   adopted by the Federal financial supervisory agencies as
22   provided under 12 CFR Ch. I Pt. 25 (relating to Community
23   Reinvestment Act and interstate deposit production regulations),
24   Ch. II Subch. A Pt. 228 (relating to community reinvestment
25   (regulation BB)) and Ch. III Subch. B Pt. 345 (relating to
26   community reinvestment), as applicable to the specific type of
27   bank.
28      "Community reinvestment performance."      The performance of a
29   nonbank entity in helping to meet the credit needs of the
30   community credit union's entire community, including low-income

20250SB0119PN0070                    - 2 -
 1   neighborhoods and moderate-income neighborhoods.
 2      "Department."    The Department of Banking and Securities of
 3   the Commonwealth.
 4      "Federal financial supervisory agency."    The Office of the
 5   Comptroller of the Currency, the Board of Governors of the
 6   Federal Reserve System, the Federal Deposit Insurance
 7   Corporation and any successor to such agencies, as applicable to
 8   the specific type of bank.
 9   § 7102.   Duties of banks.
10      (a)    Local communities.--Each bank shall, in accordance with
11   the provisions of community reinvestment laws and without
12   excluding low-income neighborhoods and moderate-income
13   neighborhoods, delineate the local community or communities that
14   comprise the bank's entire community within this Commonwealth or
15   delineate one or more assessment areas, as applicable, within
16   which the department shall evaluate the bank's record of helping
17   to meet the credit needs of the entire community. The department
18   shall review the delineation for compliance with community
19   reinvestment laws and this subsection in connection with an
20   examination of the bank under section 401 of the act of May 15,
21   1933 (P.L.565, No.111), known as the Department of Banking and
22   Securities Code.
23      (b)    Loan information.--Each bank shall collect and report
24   loan information in accordance with the applicable requirements
25   of community investment laws. Each bank shall file with the
26   department a copy of each disclosure statement prepared for the
27   bank by a Federal financial supervisory agency under community
28   investment laws within 30 business days of receiving the
29   statement.
30      (c)    Public access.--Copies of the public section of the most

20250SB0119PN0070                   - 3 -
 1   recent community reinvestment performance evaluation prepared by
 2   the department under section 7105(b)(2) (relating to assessment
 3   of banks) shall be provided to the public by mail, upon request.
 4   A bank may charge a reasonable fee not to exceed the cost of
 5   copying and mailing, if applicable.
 6      (d)   Public file.--Each bank shall maintain a public file in
 7   accordance with community reinvestment laws. Each bank shall
 8   place a copy of the public section of the bank's most recent
 9   community reinvestment performance evaluation prepared by the
10   department under section 7105(b)(2) in the public file within 30
11   business days of receipt from the department. The bank may also
12   include in the public file any response to the community
13   reinvestment performance evaluation. The bank shall make a copy
14   of the public section of the community reinvestment performance
15   evaluation available to the public for inspection upon request
16   and at no cost at the bank's main office and at each of the
17   bank's branches in this Commonwealth. A bank that received a
18   less than satisfactory rating during the bank's most recent
19   examination under section 7105 shall include in its public file
20   a description of the bank's current efforts to improve
21   performance in helping to meet the credit needs of the entire
22   community. The bank shall update the description quarterly.
23      (e)   Strategic plan.--The department may assess a bank's
24   record of helping to meet the credit needs of the bank's
25   assessment areas under a strategic plan under community
26   reinvestment laws, provided the strategic plan is filed with the
27   department concurrently with the strategic plan's submission by
28   the bank to a Federal financial supervisory agency for approval
29   under community reinvestment laws, and the strategic plan is
30   approved by the department.

20250SB0119PN0070                  - 4 -
 1   § 7103.   Duties of department.
 2      The department shall assess the record of each bank in
 3   satisfying the bank's continuing and affirmative obligations to
 4   help meet the credit needs of the bank's local communities,
 5   including low-income neighborhoods and moderate-income
 6   neighborhoods and shall provide for the consideration of the
 7   records in connection with an application considered under
 8   section 7105(c) (relating to assessment of banks).
 9   § 7104.   Community reinvestment notice.
10      (a)    Public notice.--Except as provided in subsection (d),
11   each bank shall provide, in the public lobby of each of its
12   offices, a public notice substantially similar to the one
13   provided in this subsection and subsection (b). Bracketed
14   material shall be used only by a bank having more than one local
15   community.
16                      COMMUNITY REINVESTMENT NOTICE
17      Community reinvestment requires the evaluation of our
18      performance in helping to meet the credit needs of this
19      community, and to take this evaluation into account when the
20      Pennsylvania Department of Banking and Securities decides on
21      certain applications submitted by us.
22      Your involvement is encouraged.
23      You should know that:
24      You may obtain our current Community Reinvestment Statement
25      for this community in this office. (Current Community
26      Reinvestment Statements for other communities served by us
27      are available at our main office, located at:
28      .....................................)
29      You may send signed, written comments about our Community
30      Reinvestment Statement or our performance in helping to meet

20250SB0119PN0070                   - 5 -
 1      community credit needs to (title and address of bank
 2      official) and to the Department of Banking and Securities
 3      (address). Your letter, together with any responses by us,
 4      may be made public.
 5      You may look at a file of all signed, written comments
 6      received by us within the past two years, any response we
 7      have made to the comments and all Community Reinvestment
 8      Statements in effect during the past two years at our office
 9      located at (address). You also may look at the file about
10      this community at (name and address of designated office).
11      You may ask to look at any comments received by the
12      Department of Banking and Securities.
13      (b)   Subsidiaries.--If the bank is a subsidiary of a holding
14   company, the following provision shall be included in the
15   community reinvestment notice required under subsection (a):
16            We are a subsidiary of (name of holding company), a
17            (bank/savings and loan) holding company. You may request
18            from the (Federal Reserve Bank) of (address) an
19            announcement of applications covered by the community
20            reinvestment statement filed by holding companies.
21      (c)   Most recent evaluations.--Except as provided in
22   subsection (d)(2), within 30 business days of receiving the most
23   recent community reinvestment performance evaluation prepared by
24   the department or a Federal financial supervisory agency, each
25   bank shall add the following provision to the community
26   reinvestment notice required under subsection (a):
27            You may obtain the public section of our most recent
28            community reinvestment performance evaluation at (name
29            and address of main office and designated community
30            office).

20250SB0119PN0070                   - 6 -
 1    (d)   Additional notice.--
 2          (1)   On and after July 1, 2023, in addition to the public
 3    notice required under community reinvestment laws, each bank
 4    shall provide in the public lobby of its main office and each
 5    of its branches in this Commonwealth a public notice
 6    substantially similar to the following:
 7                      COMMONWEALTH OF PENNSYLVANIA
 8                     COMMUNITY REINVESTMENT NOTICE
 9    The Pennsylvania Department of Banking and Securities
10    evaluates our record of helping to meet the credit needs of
11    this community. The Department of Banking and Securities also
12    takes this record into account when deciding on certain
13    applications submitted by us.
14    Your involvement is encouraged.
15    In addition to the information that you are entitled to
16    receive under the Federal Community Reinvestment Act, as
17    listed in the "Community Reinvestment Act Notice" posted in
18    this lobby, you may review today the public section of our
19    most recent community reinvestment performance evaluation
20    prepared by the Department of Banking and Securities.
21    You may send written comments about our performance in
22    helping to meet community credit needs to the Department of
23    Banking and Securities (address). Your letter, together with
24    any response by us, will be considered by the Department of
25    Banking and Securities in evaluating our community
26    reinvestment performance and may be made public.
27    You may ask to look at any comments received by the
28    Department of Banking and Securities.
29          (2)   Notwithstanding the provisions of subsections (a),
30    (b) and (c), prior to July 1, 2023, a bank may use the form

20250SB0119PN0070                  - 7 -
 1      of public notice provided under paragraph (1) in lieu of the
 2      form of public notice provided under subsections (a), (b) and
 3      (c), if the use is consistent with the form of public notice
 4      required to be used by the bank under community reinvestment
 5      laws.
 6      (e)    Combination of notices.--The information, statements,
 7   evaluations and notices required under this section and section
 8   7102(e) (relating to duties of banks) may be combined with or
 9   attached to the information, statements, evaluations and notices
10   required under community reinvestment laws.
11   § 7105.    Assessment of banks.
12      (a)    Factors.--The department shall assess the record of the
13   performance of the bank in helping to meet the credit needs of
14   the bank's entire community, including low-income neighborhoods
15   and moderate-income neighborhoods. The department shall assess
16   the community reinvestment performance of a bank utilizing the
17   applicable methodology provided in community reinvestment laws.
18   In addition, the department shall consider the following in
19   assessing a bank's record of performance:
20             (1)   The bank's record of offering escrow accounts for
21      purposes of paying property taxes.
22             (2)   Efforts of the bank to work with delinquent
23      residential mortgage customers who are unemployed or
24      underemployed to facilitate a resolution of the delinquency.
25             (3)   The fair housing efforts of the bank in
26      collaboration with State and local agencies.
27             (4)   The bank's record relating to abusive practices that
28      result in the loss of affordable housing.
29             (5)   Written comments received by the department.
30      (b)    Community reinvestment performance evaluation.--

20250SB0119PN0070                      - 8 -
 1        (1)   Upon the conclusion of the assessment required under
 2    subsection (a), the department shall prepare a written
 3    evaluation of the bank's record of meeting the credit needs
 4    of the bank's entire community, including low-income
 5    neighborhoods and moderate-income neighborhoods. Each
 6    community reinvestment performance evaluation prepared under
 7    this subsection shall have a public section and a
 8    confidential section.
 9        (2)   The public section of the community reinvestment
10    performance evaluation shall:
11              (i)    State the department's assessment of the
12        community reinvestment performance of the bank utilizing
13        the applicable methodology provided under community
14        reinvestment laws.
15              (ii)    Discuss the facts supporting the assessment.
16              (iii)    Contain the bank's rating and a statement
17        describing the basis for the rating. The rating shall be
18        one of the following:
19                     (A)   outstanding record of meeting community
20              credit needs;
21                     (B)   high satisfactory record of meeting
22              community credit needs;
23                     (C)   low satisfactory record of meeting community
24              credit needs;
25                     (D)   needs to improve record of meeting community
26              credit needs; or
27                     (E)   substantial noncompliance in meeting
28              community credit needs.
29        (3)   The department shall provide a copy of the public
30    portion of the community reinvestment performance evaluation

20250SB0119PN0070                     - 9 -
 1      to the bank upon completion of the evaluation.
 2             (4)   The confidential section of the performance
 3      evaluation shall contain all references that identify any
 4      customer of the bank, any employee or officer of the bank or
 5      any person that has provided information in confidence to the
 6      department or to any Federal financial supervisory agency.
 7      The confidential section shall also contain any statements
 8      obtained or made by the department in the course of an
 9      examination which, in the judgment of the department, are too
10      sensitive or speculative in nature to disclose to the bank or
11      the public. The confidential section may be disclosed, in
12      whole or in part, to the bank if the department determines
13      that the disclosure will promote the objectives of this
14      chapter, except that no disclosure shall identify a person
15      that has provided information in confidence to the department
16      or to any Federal financial supervisory agency.
17      (c)    Consideration of applications.--In considering an
18   application for the establishment of a branch or other facility
19   with the ability to accept deposits, the relocation of the main
20   office or a branch office or a merger or consolidation with or
21   the acquisition of assets or stock or assumption of liabilities
22   of another bank, the department shall consider, but not be
23   limited to considering, the bank's record of performance. A
24   bank's record of performance in helping to meet the credit needs
25   of the bank's community may be the basis for denying or
26   conditioning such an application.
27      (d)    Rules and regulations.--The department may promulgate
28   rules and regulations necessary to implement this section.
29   § 7106.    Lists of banks by department.
30      The department shall annually prepare and submit to the State

20250SB0119PN0070                     - 10 -
 1   Treasurer a list of banks which have received a rating of low
 2   satisfactory or lower in connection with the community
 3   reinvestment performance evaluation prepared by the department
 4   under section 7105 (relating to assessment of banks) or by a
 5   Federal financial supervisory agency pursuant to community
 6   reinvestment laws, whichever evaluation is made available most
 7   recently. No bank included on the list may receive deposits from
 8   the State Treasurer. In preparing the list, the department may
 9   rely on information received from a Federal financial
10   supervisory agency.
11   § 7107.    Transaction approval.
12      (a)    Compliance requirement.--
13             (1)   The department may not grant any approval under the
14      act of November 30, 1965 (P.L.847, No.356), known as the
15      Banking Code of 1965, unless the department finds that:
16                   (i)    Based on the most recent applicable performance
17             evaluation and any related information required by the
18             department, the entity has a record of compliance with
19             the requirements of community reinvestment laws, this
20             chapter, to the extent applicable, and applicable
21             consumer protection laws.
22                   (ii)   Except as otherwise provided in this
23             subsection, if the entity, and, in the case of an
24             approval, the bank or any subsidiary bank of the holding
25             company, received any overall rating other than an
26             assigned rating of high satisfactory or higher on the
27             most recent applicable community reinvestment performance
28             evaluation, the resulting entity will provide adequate
29             services to meet the banking needs of all community
30             residents, including low-income residents and moderate-

20250SB0119PN0070                        - 11 -
 1        income residents, to the extent permitted by its charter,
 2        in accordance with the strategic plan submitted by the
 3        applicant to the department in a form and containing the
 4        information as the department may require or, if
 5        acceptable to the department, in accordance with an
 6        approved strategic plan prepared under community
 7        reinvestment laws that is submitted by the applicant to
 8        the department.
 9        (2)     Upon receiving the strategic plan, the department
10    shall make the plan available for public inspection and
11    comment at the department. The department shall transmit
12    notice of the plan's submission and availability for
13    inspection to the Legislative Reference Bureau for
14    publication in the next available issue of the Pennsylvania
15    Bulletin and provide for public comments. With the
16    concurrence of the department, the applicant shall publish,
17    in the form of a legal advertisement in a newspaper of
18    general circulation, notice of the plan's submission and
19    availability for public inspection and comment. The notice
20    shall state that the inspection and comment period will last
21    for a period of 30 days from the date of publication. The
22    department shall not make the finding until the expiration of
23    the 30-day period.
24        (3)     In making the finding, the department shall, unless
25    clearly inapplicable, consider, among other factors, whether
26    the plan:
27              (i)    identifies specific unmet credit and consumer
28        banking needs in the local community;
29              (ii)    specifies how credit and consumer banking needs
30        will be satisfied;

20250SB0119PN0070                   - 12 -
 1                (iii)    provides for sufficient distribution of
 2          banking services among branches or satellite devices, or
 3          both, located in low-income neighborhoods;
 4                (iv)    contains adequate assurances that banking
 5          services will be offered on a nondiscriminatory basis;
 6          and
 7                (v)    demonstrates a commitment to extend credit for
 8          housing, small business and consumer purposes in low-
 9          income neighborhoods.
10          (4)   The submission of the plan shall not be required in
11    the case of an approval under the Banking Code of 1965, if
12    the department requires the filing of the information in lieu
13    of a plan. If the department determines that an applicant is
14    an eligible entity, the department may exempt the applicant
15    from the requirement that the applicant file a plan or
16    require the information in lieu of a plan.
17          (5)   The department shall not approve the transaction if
18    the transaction would result in a monopoly or would be in
19    furtherance of any combination or conspiracy to monopolize or
20    attempt to monopolize the business of banking in this
21    Commonwealth, or if the department determines that the effect
22    of the proposed transaction may be to substantially lessen
23    competition, would tend to create a monopoly or would be in
24    restraint of trade, unless the department finds that the
25    anticompetitive effects of the proposed transaction are
26    clearly outweighed in the public interest by the probable
27    effect of the transaction in meeting the convenience and
28    needs of the community to be served.
29    (b)   Determination by department.--
30          (1)   The department shall not make a determination

20250SB0119PN0070                     - 13 -
 1    stating that the department does not disapprove an offer,
 2    invitation, request, agreement or acquisition unless the
 3    department finds that:
 4              (i)    Based on the most recent applicable performance
 5        evaluation and any related information required by the
 6        department, the acquiring person, if the person is a
 7        bank, and the acquiring person's subsidiaries, if the
 8        person is a holding company, has a record of compliance
 9        with the requirements of community reinvestment laws,
10        this chapter, to the extent applicable, and applicable
11        consumer protection laws.
12              (ii)   Except as otherwise provided in this
13        subsection, if the bank or any banking subsidiary of the
14        holding company referred to in the acquisition statement
15        received any overall rating other than an assigned rating
16        of high satisfactory or higher on its most recent
17        applicable community reinvestment performance evaluation,
18        the bank or banking subsidiary shall provide adequate
19        services to meet the banking needs of all community
20        residents, including low-income residents and moderate-
21        income residents, to the extent permitted by its charter
22        or charters.
23        (2)   If the acquiring person is not an individual, or if
24    the acquiring person is an individual who would be the
25    beneficial owner of 25% or more of any class of voting
26    securities of the bank or holding company referred to in the
27    acquisition statement, the finding as to the adequacy of
28    services to be provided shall be based on a plan submitted by
29    the acquiring person to the department, in a form and
30    containing the information as the department may require, or,

20250SB0119PN0070                   - 14 -
 1    if acceptable to the department, in accordance with an
 2    approved strategic plan prepared under community reinvestment
 3    laws, or the relevant portion thereof, that is submitted by
 4    the acquiring person to the department.
 5        (3)   Upon receiving the plan, the department shall make
 6    the plan available for public inspection and comment at the
 7    department's office. The department shall transmit notice of
 8    the plan's submission and the availability for inspection to
 9    the Legislative Reference Bureau for publication in the next
10    available issue of the Pennsylvania Bulletin and provide for
11    public comment. With the concurrence of the department, the
12    acquiring person shall publish, in the form of a legal
13    advertisement in a newspaper of general circulation, notice
14    of the plan's submission and availability for public
15    inspection and comment. The notice shall state that the
16    inspection and comment period will last for a period of 30
17    days from the date of publication. The department shall not
18    make a finding until the expiration of the 30-day period.
19        (4)   (i)    In making the finding, the department shall
20        consider, among other factors, whether the plan:
21                    (A)   identifies specific unmet credit and
22              consumer banking needs in the local community;
23                    (B)   specifies how the credit and consumer
24              banking needs will be satisfied;
25                    (C)   provides for sufficient distribution of
26              banking services among branches or satellite devices,
27              or both, located in low-income neighborhoods;
28                    (D)   contains adequate assurances that banking
29              services will be offered on a nondiscriminatory
30              basis; and

20250SB0119PN0070                   - 15 -
 1                     (E)   demonstrates a commitment to extend credit
 2              for housing, small business and consumer purposes in
 3              low-income neighborhoods.
 4              (ii)    The department may exempt an acquiring person
 5        from the requirement that the acquiring person file a
 6        plan if the department determines that the bank or
 7        banking subsidiary referred to in the acquisition
 8        statement is an eligible entity.
 9        (5)   If the acquiring person is an individual who would
10    be the beneficial owner of less than 25% of all classes of
11    voting securities of the bank or holding company referred to
12    in the acquisition statement, the department shall make the
13    finding as to adequacy of services to be provided based on
14    the commitment of the acquiring person to use the acquiring
15    person's best efforts to cause the bank or banking
16    subsidiaries of the holding company to provide the services.
17    The department shall not make a determination stating that
18    the department does not disapprove the offer, invitation,
19    request, agreement or acquisition if the offer, invitation,
20    request, agreement or acquisition would result in a monopoly
21    or would be in furtherance of any combination or conspiracy
22    to monopolize or attempt to monopolize the business of
23    banking in this Commonwealth, or if the department should
24    determine that the effect of the proposed offer, invitation,
25    request, agreement or acquisition may be to substantially
26    lessen competition, would tend to create a monopoly or would
27    be in restraint of trade, unless the department finds that
28    the anticompetitive effects of the proposed transaction are
29    clearly outweighed in the public interest by the probable
30    effect of the transaction in meeting the convenience and

20250SB0119PN0070                    - 16 -
 1      needs of the community to be served.
 2      (c)    Definitions.--As used in this section, the following
 3   words and phrases shall have the meanings given to them in this
 4   subsection unless the context clearly indicates otherwise:
 5      "Eligible entity."     An entity which:
 6            (1)   Received a composite rating of one or two under the
 7      Uniform Financial Institutions Rating System as a result of
 8      the entity's most recent safety and soundness examination.
 9            (2)   Received a compliance rating of one or two on the
10      entity's most recent compliance examination.
11            (3)   Received a satisfactory or better rating on the
12      entity's most recent community reinvestment performance
13      evaluation.
14            (4)   Is well capitalized, as defined in 12 CFR 324.403(b)
15      (1) (relating to capital measures and capital category
16      definitions).
17            (5)   Is not subject to a cease and desist order, consent
18      order, prompt correction action directive, written agreement,
19      memorandum of understanding or other administrative agreement
20      with the entity's primary Federal or State banking regulator.
21            (6)   Is not subject to any formal or informal
22      administrative action by the entity's primary Federal or
23      State banking regulator.
24                                  CHAPTER 72
25                  COMMUNITY REINVESTMENT BY NONBANK ENTITIES
26   Sec.
27   7201.    Definitions.
28   7202.    Community reinvestment.
29   7203.    Community reinvestment performance evaluation.
30   7204.    Community reinvestment notice.

20250SB0119PN0070                    - 17 -
 1   7205.   Effect on certain approvals.
 2   7206.   Lists of nonbank entities by department.
 3   § 7201.    Definitions.
 4      The following words and phrases when used in this chapter
 5   shall have the meanings given to them in this section unless the
 6   context clearly indicates otherwise:
 7      "Assessment area."      One or more of the geographic areas as
 8   delineated by a community credit union that:
 9             (1)   Consists of one or more metropolitan statistical
10      areas or one or more contiguous political subdivisions,
11      including, but not limited to, counties, cities or towns.
12             (2)   Includes geographies in which the community credit
13      union has a principal office, subsidiary offices and share-
14      taking automated teller machines.
15             (3)   Includes the surrounding geographies in which the
16      community credit union originates or purchases a substantial
17      portion of loans.
18      "Community credit union."      A Pennsylvania credit union which
19   has $10,000,000 or more in total assets and the membership of
20   which is limited to persons within a well-defined community,
21   neighborhood or rural district.
22      "Community reinvestment performance."      The performance of a
23   nonbank entity in helping to meet the credit needs of the
24   community credit union's entire community, including low-income
25   neighborhoods and moderate-income neighborhoods.
26      "Mortgage broker."      As defined under section 6102 (relating
27   to definitions).
28      "Mortgage lender."      As defined under section 6102.
29      "Nonbank entity."      A community credit union, a mortgage
30   broker and a mortgage lender.

20250SB0119PN0070                     - 18 -
 1   § 7202.    Community reinvestment.
 2      (a)    Credit needs.--Each nonbank entity shall satisfy its
 3   continuing and affirmative obligation to help meet the credit
 4   needs of its community, including low-income neighborhoods and
 5   moderate-income neighborhoods.
 6      (b)    Evaluation.--Not later than January 1, 2023, each
 7   nonbank entity shall delineate one or more assessment areas
 8   within which the department shall evaluate the nonbank entity's
 9   community reinvestment performance in this Commonwealth and
10   shall file the delineations with the department. An assessment
11   area shall consist only of whole geographies and may not reflect
12   illegal discrimination, arbitrarily exclude low-income
13   geographies or moderate-income geographies or extend
14   substantially beyond a consolidated metropolitan statistical
15   area boundary or beyond a state boundary, unless the assessment
16   area is located in a multistate metropolitan statistical area. A
17   nonbank entity may adjust the boundaries of the nonbank entity's
18   assessment areas to include only the portion of a political
19   subdivision that the nonbank entity reasonably can be expected
20   to serve. A nonbank entity shall immediately file an amendment
21   with the department reflecting an adjustment of the boundaries
22   of an assessment area.
23      (c)    Periodic assessment.--The department shall assess
24   periodically the community reinvestment performance of a nonbank
25   entity. The department shall assess the community reinvestment
26   performance of the nonbank entity based on the following:
27             (1)   The nonbank entity's record of helping to meet the
28      credit needs of the assessment area or areas through
29      qualified investments that benefit the nonbank entity's
30      assessment area or areas or a broader Statewide or regional

20250SB0119PN0070                     - 19 -
 1    area that includes the nonbank entity's assessment area or
 2    areas.
 3          (2)   The nonbank entity's record of helping to meet the
 4    credit needs of the assessment area or areas, by analyzing
 5    both the availability and effectiveness of the nonbank
 6    entity's systems for delivering retail credit union services
 7    and the extent and innovativeness of the nonbank entity's
 8    community development services.
 9          (3)   The loan-to-share ratio given the nonbank entity's
10    size and financial condition, credit needs of the assessment
11    area or areas and other lending-related activities,
12    considering seasonal variations, as used in 12 CFR 228.26
13    (relating to limited purpose banks).
14          (4)   The percentage of total loans and other lending-
15    related activities within the assessment area or areas.
16          (5)   The record of lending and other lending-related
17    activities to borrowers of different income levels and
18    businesses and farms of different sizes.
19          (6)   The geographic distribution of loans.
20          (7)   The action taken in response to written complaints
21    with respect to community reinvestment performance.
22          (8)   The efforts of the nonbank entity to work with
23    delinquent residential mortgage customers who are unemployed
24    or underemployed to facilitate a resolution of the
25    delinquency.
26          (9)   The written comments received by the department.
27    (d)   Community reinforcement performance evaluation.--
28          (1)   Upon the completion of the assessment required under
29    subsection (c), the department shall prepare a written
30    evaluation of the nonbank entity's community reinvestment

20250SB0119PN0070                  - 20 -
 1      performance.
 2             (2)   (i)     The community reinvestment performance
 3             evaluation shall:
 4                          (A)   State the department's assessment of the
 5                   community reinvestment performance of the nonbank
 6                   entity.
 7                          (B)   Provide and discuss the facts supporting the
 8                   assessment.
 9                          (C)   Contain the nonbank entity's rating and a
10                   statement describing the basis for the rating. The
11                   rating shall be one of the following:
12                                (I)    outstanding record of meeting community
13                          credit needs;
14                                (II)    high satisfactory record of meeting
15                          community credit needs;
16                                (III)    low satisfactory record of meeting
17                          community credit needs;
18                                (IV)    needs to improve record of meeting
19                          community credit needs; or
20                                (V)    substantial noncompliance in meeting
21                          community credit needs.
22                   (ii)    The department shall furnish a copy of the
23             community reinvestment performance evaluation to the
24             nonbank entity upon completion.
25   § 7203.    Community reinvestment performance evaluation.
26      (a)    Public access.--Each nonbank entity shall provide to the
27   public, by mail, upon request, copies of the most recent
28   community reinvestment performance evaluation prepared by the
29   department under section 7202 (relating to community
30   reinvestment). A community credit union may charge a reasonable

20250SB0119PN0070                            - 21 -
 1   fee not to exceed the cost of copying and mailing, if
 2   applicable.
 3      (b)    Public file.--Each nonbank entity shall maintain a
 4   public file in which it shall place, not later than 30 business
 5   days after receipt from the department, a copy of the nonbank
 6   entity's most recent community reinvestment performance
 7   evaluation prepared by the department under section 7202. The
 8   nonbank entity may also include in the public file any response
 9   to the community reinvestment performance evaluation that the
10   nonbank entity makes. The nonbank entity shall make a copy of
11   the community reinvestment performance evaluation available to
12   the public for inspection upon request and at no cost at the
13   nonbank entity's principal office and at each of its subsidiary
14   offices in this Commonwealth. A nonbank entity that receives a
15   rating of "low satisfactory record of meeting community credit
16   needs" or lower on its most recent evaluation shall include in
17   the public file a description of the nonbank entity's current
18   efforts to improve its performance in helping to meet the credit
19   needs of the entire community. The nonbank entity shall update
20   the description quarterly until it receives a "high satisfactory
21   record of meeting community needs" or better rating from the
22   department.
23   § 7204.   Community reinvestment notice.
24      Each nonbank entity shall provide in the public lobby of its
25   principal office and each of its subsidiary offices in this
26   Commonwealth a public notice substantially similar to the
27   following:
28                       COMMONWEALTH OF PENNSYLVANIA
29                      COMMUNITY REINVESTMENT NOTICE
30      The Pennsylvania Department of Banking and Securities

20250SB0119PN0070                   - 22 -
 1      evaluates our record of helping to meet the credit needs of
 2      this community. The Department of Banking and Securities may
 3      also consider this record when deciding on certain
 4      applications submitted by us.
 5      Your involvement is encouraged.
 6      You may review today our most recent community reinvestment
 7      performance evaluation prepared by the Department of Banking
 8      and Securities.
 9      You may send written comments about our community
10      reinvestment performance to the Department of Banking and
11      Securities (address). Your comments, together with any
12      response by us, will be considered by the Department of
13      Banking and Securities in evaluating our community
14      reinvestment performance and may be made public.
15      You may ask to look at any comments received by the
16      Department of Banking and Securities.
17   § 7205.    Effect on certain approvals.
18      (a)    Considerations.--The department may consider the
19   community reinvestment performance of a nonbank entity in
20   connection with the following:
21             (1)   An approval of an amendment to the certificate of
22      incorporation under 17 Pa.C.S. (relating to credit unions).
23             (2)   An approval of an expansion of the nonbank entity's
24      field of membership under 17 Pa.C.S.
25             (3)   An approval of a merger under 17 Pa.C.S.
26      (b)    Withhold or condition approval.--The department may
27   withhold approval of or condition an issuance of approval of the
28   amendment, expansion or merger under this section.
29   § 7206.    Lists of nonbank entities by department.
30      (a)    List.--The department shall annually prepare and submit

20250SB0119PN0070                     - 23 -
 1   to the State Treasurer a list of nonbank entities that the
 2   department rated in a community reinvestment performance
 3   evaluation prepared under section 7202 (relating to community
 4   reinvestment) as follows:
 5            (1)   "low satisfactory record of meeting community credit
 6      needs";
 7            (2)   "needs to improve record of meeting community credit
 8      needs"; or
 9            (3)   "substantial noncompliance in meeting community
10      credit needs."
11      (b)   Prohibition.--A nonbank entity included on the list may
12   not receive money under the provisions of 17 Pa.C.S. (relating
13   to credit unions).
14      Section 2.    This act shall take effect in 365 days.




20250SB0119PN0070                    - 24 -