,,ii  #aagth ,,congress  #ast ,session  
,s4 #ahch  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,may #bf1 #bjba
 ,mr4 ,scott of ,south ,carolina 7for   
himself and ,mr4 ,blumenthal7 introduced
 the following bill2 which was read     
twice and referred to the ,committee on 
,veterans' ,affairs  ,a ,,bill  ,to     
require the ,secretary of ,veterans     
,affairs to carry out a pilot program on
 using alternative credit scoring       
information for veterans and members of 
the ,armed ,forces1 and for other       
purposes4  #a4 ,short title ,this ,act  
may be cited as the ,building ,credit   
,access for ,veterans ,act of #bjba4    
#b4 ,department of ,veterans ,affairs   
pilot program on use of alternative     
credit scoring information or credit    
scoring models  7a7 ,pilot program      
required  7#a7 ,in general ,not later   
than one year after the date of the     
enactment of this ,act1 the ,secretary  
of ,veterans ,affairs shall commence    
carrying out a pilot program that will  

assess the feasibility and advisability 
of--  7,a7 using alternative credit     
scoring information or credit scoring   
models using alternative credit scoring 
methodology for an individual described 
in paragraph 7#b7-- 7i7 to improve the  
determination of creditworthiness of    
such an individual2 and  7ii7 to        
increase the number of such individuals 
who are able to obtain a loan guaranteed
 or insured under chapter #cg of title  
#ch1 ,united ,states ,code2 and  7,b7 in
 consultation with such entities as the 
,secretary considers appropriate1       
establishing criteria for acceptable    
commercially available credit scoring   
models to be used by lenders for the    
purpose of guaranteeing or insuring a   
loan under chapter #cg of title #ch1    
,united ,state ,code4  7#b7 ,individual 
described ,an individual described in   
this paragraph is a veteran or a member 
of the ,armed ,forces who-- 7,a7 is     
eligible for a loan under chapter #cg of
 title #ch1 ,united ,states ,code2 and  

7,b7 has an insufficient credit history 
for a lender or the ,secretary to       
determine the creditworthiness of the   
individual4  7#c7 ,alternative credit   
scoring information ,alternative credit 
scoring information described in        
paragraph 7#a77;,a7 may include proof of
 rent1 utility1 and insurance payment   
histories1 and such other information as
 the ,secretary considers appropriate4  
7b7 ,voluntary participation  7#a7 ,in  
general ,the ,secretary shall ensure    
that any participation in the pilot     
program is voluntary on an opt-in basis 
for a lender1 a borrower1 and an        
individual described in subsection      
7a77#b74  7#b7 ,notice of participation 
,subject to paragraph 7#c71 any lender  
who participates in the pilot program   
shall--  7,a7 notify each individual    
described in subsection 7a77#b7 who1    
during the pilot program1 applies for a 
loan under chapter #cg of title #ch1    
,united ,states ,code1 from such lender1
 of the lender's participation in the   

pilot program2 and  7,b7 offer such     
individual the opportunity to           
participate in the pilot program4  7#c7 
,limitation  7,a7 ,in general ,the      
,secretary may establish a limitation on
 the number of individuals and lenders  
that may participate in the pilot       
program4  7,b7 ,report ,if the          
,secretary limits participation in the  
pilot program under subparagraph 7,a71  
the ,secretary shall1 not later than #ae
 days after establishing such           
limitation1 submit to ,congress a report
 setting forth the reasons for          
establishing such limitation4  7c7      
,approval of credit scoring models  7#a7
 ,in general ,a lender participating in 
the pilot program may not use a credit  
scoring model under subsection          
7a77#a77;,a7 until the ,secretary has   
reviewed and approved such credit       
scoring model for purposes of the pilot 
program4  7#b7 ,publication of criteria 
,the ,secretary shall publish in the    
,federal ,register any criteria         

established under subsection            
7a77#a77;,b7 for acceptable commercially
 available credit scoring models that   
use alternative credit scoring          
information described in subsection     
7a77#a77;,a7 to be used for purposes of 
the pilot program4  7#c7                
,considerations2 approval of certain    
models ,in selecting credit scoring     
models to approve under this section1   
the ,secretary shall-- 7,a7 consider the
 criteria for credit score assessments  
under section #abed4g of title #ab1     
,code of ,federal ,regulations2 and     
7,b7 approve any commercially available 
credit scoring model that has been      
approved pursuant to section            
#cjb7;b77#g7 of the ,federal ,national  
,mortgage ,association ,charter ,act    
7#ab ,u4,s4,c4 #agag7;b77#g77 or section
 #cje7;d7 of the ,federal ,home ,loan   
,mortgage ,corporation ,act 7#ab        
,u4,s4,c4 #aded77;d774  7d7 ,outreach   
,to the extent practicable1 the         
,secretary shall conduct outreach to    

lenders and individuals described in    
subsection 7a77#b7 to inform such       
persons of the pilot program4  7e7      
,report  7#a7 ,in general ,not later    
than two years after the date of the    
enactment of this ,act1 the ,secretary  
shall submit to ,congress a report on   
the pilot program4  7#b7 ,contents ,the 
report submitted under paragraph 7#a7   
shall include the following3  7,a7 ,the 
findings of the ,secretary with respect 
to the feasibility and advisability of  
using alternative credit scoring        
information or credit scoring models    
using alternative credit scoring        
methodology for individuals described in
 subsection 7a77#b74  7,b7 ,a           
description of the efforts of the       
,secretary to assess the feasibility and
 advisability of using alternative      
credit scoring information or credit    
scoring models as described in          
subparagraph 7,a74  7,c7 ,to the extent 
practicable1 the following3 7i7 ,the    
rate of participation in the pilot      

program4  7ii7 ,an assessment of whether
 participants in the pilot program      
benefitted from such participation4     
7,d7 ,an assessment of the effect of the
 pilot program on the subsidy rate for  
loans guaranteed or insured by the      
,secretary under chapter #cg of title   
#ch1 ,united ,states ,code4  7,e7 ,such 
other information as the ,secretary     
considers appropriate4  7f7 ,termination
  7#a7 ,in general ,the ,secretary shall
 complete the pilot program required by 
subsection 7a77#a7 not later than       
,september #cj1 #bjbe4  7#b7 ,effect on 
loans and applications ,the termination 
of the pilot program under paragraph    
7#a7 shall not affect a loan guaranteed1
 or for which loan applications have    
been received by a participating lender1
 on or before the date of the completion
 of the pilot program4  7g7             
,insufficient credit history defined ,in
 this section1 the term insufficient    
credit history1 with respect to an      
individual described in subsection      

7a77#b71 means that the individual does 
not have a credit record with one of the
 national credit reporting agencies or  
such credit record contains insufficient
 credit information to assess           
creditworthiness4