ACB: Press Releases

Contact:	Robert Schmermund (202) 857-3104 Jim Eberle (202) 857-3145	Jim Eberle (202) 857-3145 (work) (703) 893-2593 (home) [email protected]	For Immediate Release October 17, 2000 #00-113
E-mail: [email protected]

AMERICA’S COMMUNITY BANKERS URGES DISTRICT OF COLUMBIA COUNCIL TO REMOVE PREDATORY LENDING FEATURES OF PROPOSED BILL

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WASHINGTON, D.C. — America’s Community Bankers has urged the Washington, D.C. City Council to eliminate over-inclusive predatory lending restrictions from a foreclosure bill that could discourage lenders from providing credit in the District.

In a statement to the Council’s Economic Development Committee, which is considering the measure, ACB said: “The best approach to the predatory lending problem is vigorous enforcement of existing laws and regulations, not counterproductive new limitations.”

ACB said it was concerned that most of the proposed lending restrictions are “so vague” that the bill “could discourage certain types of lending by inaccurately labeling loans as predatory or stigmatizing legitimate loan terms and at the same time failing to stop predators from engaging in egregious practices.”

The bill’s enforcement mechanism — denying lenders the right to foreclose — is particularly troubling, ACB said, because it would be difficult to reconstruct the facts and circumstances of the transaction.

ACB said it strongly opposes the bill’s exemption for loans that conform to requirements of Fannie Mae and Freddie Mac. Predatory lenders could still attach abusive terms to conforming loans, ACB said, and the exemption would deny low- and moderate-income consumers the benefits of loans that do not conform to the requirements of Fannie and Freddie.

ACB’s letter is LINKED

America’s Community Bankers is the national trade association committed to shaping the future of banking by being the innovative industry leader strengthening the competitive position of community banks. To learn more about ACB, visit www.AmericasCommunityBankers.com.

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