IL HB2406

Amends Illinois Banking Act by adding Section 47.5 requiring financial institutions to inquire whether credit applicants are women-owned, minority-owned, or small businesses, using definitions from the federal Dodd-Frank Wall Street Reform and Consumer Protection Act.

Requires financial institutions to maintain separate records of applicant responses on Department-supplied forms, including application number, loan type, credit amount, action taken, census tract, gross annual revenue, and race/sex/ethnicity of principal owners.

Prohibits loan underwriters and officers from accessing applicant demographic information where feasible, and requires notice to applicants if access is necessary, along with notice that discrimination based on this information is prohibited.

Requires institutions to exclude personally identifiable information (names, addresses, phone numbers, email addresses) from maintained records to protect privacy.

Applies identical requirements to credit unions under Illinois Credit Union Act Section 9.5, with annual data submission to the Department required only if institutions received relevant credit applications.

Makes both provisions operative only until federal regulations implementing Section 1071 of the Dodd-Frank Act become effective.