106 STAT. 3874

PUBLIC LAW 102-550—OCT. 28, 1992

12 USC 2602
note.

12 USC 2602
note.

12 USC 2903.

12 USC 2907.

12 USC 2901
note.

(b) APPLICABILITY TO SECOND MORTGAGES AND REFINANCINGS.—
Section 3(1KA) of the Real Estate Settlement Procedures Act of
1974 (12 U.S.C. 2602UXA)) is amended—

(1) by inserting "or subordinate" after "first"; and

(2) by inserting before the semicolon the following: ", includ-
ing any such secured loan, the proceeds of which are used
to prepay or pay off an existing loan secured by the same
property^

(c) REGULATIONS.—The Secretary of Housing and Urban Devel-
opment shall issue regulations to implement the amendments made
by this section not later than the expiration of the 180-day period
beginning on the date of the enactment of this Act. The regulations
shall be issued after notice and opportunity for public comment
pursuant to the provisions of section 553 of title 5, United States
Code (notwithstanding subsections (aX2), (bXB), and (dX3) of such
section).

(d) EFFECTIVE DATE.—This section shall take effect on the
date of enactment of this Act and shall not apply retroactively.

SEC. 909. COMMUNITY REINVESTMENT ACT OF 1977.

The Community Reinvestment Act of 1977 (12 U.S.C. 2901
et seq.) is amended—

(1) in section 804—

(A) by inserting before the first sentence the following:
"(a) IN GENERAL.—*; and

(B) by adding at the end the following new subsection:
"(b) MAJORITY-OWNED INSTITUTIONS.—In assessing and taking

into account, under subsection (a), the record of a nonminority-
owned and nonwomen-owned financial institution, the appropriate
Federal financial supervisory agency may consider as a factor cap-
ital investment, loan participation, and other ventures undertaken
by the institution in cooperation with minority- and women-owned
financial institutions and low-income credit unions provided that
these activities help meet the credit needs of local communities
in which such institutions and credit unions are chartered."; and

(2) in section 808(a), by striking "shall be treated as" and
inserting "may be a factor in determining whether the deposi-
tory institution is".

SEC. 910. REPORT ON COMMUNITY DEVELOPMENT LENDING.

(a) IN GENERAL.—Not later than 12 months after the date
of enactment of this section, the Board of Governors of the Federal
Reserve System, in consultation with the Comptroller of the Cur-
rency, the Chairman of the Federal Deposit Insurance Corporation,
the Director of the Office of Thrift Supervision, and the Chairman
of the National Credit Union Administration, shall submit a report
to the Congress comparing residential, small business, and com-
mercial lending by insured depository institutions in low-income,
minority, and distressed neighborhoods to such lending in other
neighborhoods.

(b) CONTENTS OF REPORT.—The report required by subsection
(a) shall—

(1) compare the risks and returns of lending in low-income.
minority, and distressed neighborhoods with the risks and
returns of lending in other neighborhoods;

(2) analyze the reasons for any differences in risk and
return between low-income, minority, and distressed neighbor-
hoods and other neighborhoods; and