Expanding Access to Credit through Consumer-Permissioned Data Act
- Sponsor
- Rep. Williams, Nikema [D-GA-5]
- Committees
- Financial Services Committee (primary)
- Last action
- Jun 18, 2026
Bottom line
This bill aims to expand mortgage access for credit-invisible and thin-file consumers by requiring lenders to consider non-traditional, consumer-permissioned credit data.
What it actually does
This bill amends the Equal Credit Opportunity Act to mandate that mortgage creditors consider alternative credit information, such as rental payment history or bank statement data, when evaluating an applicant's creditworthiness. This consideration is required if the applicant requests it, authorizes the data provision, and states that traditional credit reports do not fully reflect their credit standing. The bill also requires creditors to provide notices to applicants about this right and mandates that automated underwriting systems comply with these new requirements.
Proponents argue
Proponents argue that this legislation is crucial for addressing systemic inequities in credit access, particularly for low-income consumers, younger individuals, and communities of color who are disproportionately affected by a lack of traditional credit history. They cite Government Accountability Office and Bureau of Consumer Financial Protection reports highlighting the potential of alternative data to expand credit access and point to Fannie Mae's successful integration of rental payment data as proof of concept.
Opponents contend
Critics may raise concerns about the increased administrative burden on mortgage creditors to evaluate and verify diverse, non-standardized alternative data sources. They might also highlight potential challenges in developing consistent underwriting standards for such data, the risk of fraud or misrepresentation, and the possibility of increased compliance costs that could ultimately be passed on to consumers or lead to unintended market distortions.
The bill is concise and clearly written, making it accessible for a quick yet thorough review by an informed reader.
Section 3(a), inserting new Section 701A(a) into the Equal Credit Opportunity Act
Mandatory Consideration of Consumer-Permissioned Alternative Data
This provision requires mortgage lenders to consider credit information not reported by national credit reporting agencies, such as bank statement information or rental payment history. This is mandatory if the applicant requests such consideration, authorizes the provision of the data, and asserts that traditional credit information does not fully or accurately reflect their creditworthiness.
Supporters argue
Supporters argue this directly addresses the 'credit invisible' problem, enabling a fairer assessment of creditworthiness for populations historically underserved by traditional credit models, thereby promoting economic equity and homeownership.
Critics contend
Critics might express concern about the operational challenges for lenders in consistently evaluating diverse forms of alternative data, and the potential for increased compliance costs and complexity in underwriting.
Tradeoffs
This provision balances the goal of expanding credit access for underserved populations with the practical challenges and potential costs for lenders in integrating and verifying non-traditional data sources.
Section 3(a), inserting new Section 701A(b) into the Equal Credit Opportunity Act
Equal Weight for Alternative Data
This provision mandates that creditors treat any consumer-permissioned alternative data provided by an applicant with the same manner and weight as they would treat similar information provided by a traditional consumer reporting agency. The only exception is if the creditor reasonably determines the information is a result of material misrepresentation, as defined by future CFPB regulations.
Section 3(a), inserting new Section 701A(c) into the Equal Credit Opportunity Act
Mandatory Applicant Notification and Multilingual Forms
Creditors are required to provide each mortgage loan applicant with a notice explaining their right to authorize the provision of additional credit information, including examples of such information and its benefits. The notice must also inform applicants of the creditor's right to disregard misrepresented information. These notices must be made available in the 8 languages most commonly spoken by individuals with limited English proficiency, with standardized form language established by the CFPB.
Section 3(a), inserting new Section 701A(e) into the Equal Credit Opportunity Act
Underwriting System Compliance and Rulemaking
This provision requires any entity, including federal agencies involved in federally backed mortgage loans, that develops or maintains mortgage loan underwriting systems to ensure these systems comply with the new requirements for considering alternative data. It also grants the CFPB Director, in consultation with other federal housing agencies (FHFA, HUD), the authority to issue regulations specifically for capturing consumer-permissioned data in automated underwriting systems.
This section mandates that the Director of the Bureau of Consumer Financial Protection (CFPB) issue final rules to carry out the amendments made by this Act within 18 months of enactment. It also specifies that the amendments will apply to creditors only on and after the effective date of these final rules.
Section 3(c)
Why it matters:This is standard legislative practice to define the implementation timeline and delegate specific rulemaking authority to an agency at the conclusion of a bill's operative text. It ensures that the policy is not effective until a comprehensive regulatory framework is in place.
Case for: Supporters would argue that this provision ensures a proper regulatory framework is developed and in place before the law takes effect, allowing the lending industry sufficient time to understand and adapt to the new requirements, thereby promoting smoother implementation and compliance.
Case against: Critics might contend that by delaying the effective date of the amendments until final rules are issued, this provision could postpone the intended benefits of the bill for up to 18 months or more, depending on the CFPB's regulatory development timeline.
Estimated impact: This provision directly determines when the bill's core requirements will become legally binding, impacting the timeline for expanded mortgage access for millions of potential borrowers and the compliance obligations for all mortgage lenders.