Sponsors (5)
The bill expands mortgage access for thin-file and underserved borrowers by allowing consumer-permissioned alternative data in underwriting, but it raises significant privacy, discrimination, and cost/compliance risks that will require strong regulatory safeguards and oversight.
Renters, low-income people, young adults, recent immigrants, and other thin/no-credit-file applicants gain a substantially higher chance to qualify for a mortgage because lenders and federal programs can consider consumer-permissioned alternative data (rental payments, bank statements, transaction data) in underwriting.
Homebuyers and underserved communities benefit at scale because automated underwriting systems and federally backed mortgage programs will be updated to accept consumer-permissioned alternative data, making expanded credit access more systematic.
Banks and local governments can better document the creditworthiness of low- and moderate-income borrowers, helping lenders meet Community Reinvestment Act obligations and supporting lending in underserved neighborhoods.
Borrowers — especially renters, low-income people, and those with disabilities — face heightened privacy and data-security risks because lenders and vendors will collect and share sensitive bank statements, transaction histories, and rental data, increasing harm from breaches or misuse.
Racial-ethnic minorities and other vulnerable groups risk discriminatory or erroneous denials if alternative data or underwriting algorithms are biased, and lenders may also sidestep alternative evidence by claiming 'material misrepresentation,' creating uncertainty and potentially unfair rejections.
Homebuyers, middle-class families, and taxpayers may face higher mortgage costs or reduced local lending as creditors, vendors, and smaller community banks incur significant compliance, integration, and technology costs to implement alternative-data systems and CFPB-required notices.
Based on analysis of 3 sections of legislative text.
Requires mortgage lenders to consider consumer‑authorized alternative credit data (bank statements, rental payments, etc.) when applicants request it and authorize disclosure, and directs CFPB rulemaking to implement this.
Official title: To amend the Equal Credit Opportunity Act to require creditors to consider certain additional credit information when making mortgage loans, and for other purposes.
Introduced June 18, 2026 by Nikema Williams · Last progress June 18, 2026
Requires mortgage lenders to consider consumer‑authorized alternative credit information (bank statements, rental payments, etc.) when applicants ask, and directs the CFPB to write rules to ensure that automated underwriting systems and creditors accept that consumer‑permissioned data unless it is materially misrepresented. The bill adds protections for applicants (notice requirements and multilingual forms) and tasks CFPB, working with housing agencies, to issue final rules within 18 months and make the changes effective for creditors on the final rule effective date.