NJ A4797

New Jersey Department of Banking and Insurance would examine and rate banks, mortgage companies, and credit unions on their lending, investments, and services to low- and moderate-income consumers and underserved communities at least once every three years.

Institutions would receive ratings ranging from "Outstanding record of meeting community needs" to "Substantial noncompliance in meeting community needs," with those rated "low satisfactory" or below required to submit improvement plans within 90 days.

The department must conduct a disparity study to identify underserved counties, populations, and census tracts, updating it every three years and reporting findings and recommendations to the Legislature.

Institutions rated "needs to improve" or "substantial noncompliance" would be ineligible to receive State agency deposits, and the department could adjust fees based on ratings.

Regulated financial institutions must post notices in branch lobbies and on websites informing the public that their community reinvestment performance is evaluated and that evaluations are available for review.