Supporting outcomes-based underwriting

Section 701(b) of the Equal Credit Opportunity Act (15 U.S.C. 1691(b)) is amended— (1) by redesignating paragraphs (4) and (5) as paragraphs (5) and (6); and (2) by inserting after paragraph (3) the following: (4) to use any empirically derived credit system to determine whether to approve an application or establish the financial or other terms of an OBF product, if that empirically derived system— (A) considers— (i) the historical graduation rates, debt-to-income ratios, income or earnings of consumers who were previously enrolled at the institution, major, or program of study that the applicant is attending or will attend (or a reasonably comparable institution, major, or program of study); or (ii) the historical income or earnings of workers in the field or profession for which the program is preparing students; and (B) is demonstrably and statistically sound in accordance with regulations of the Bureau;.