March 6, 2006


The Honorable John C. Dugan
Comptroller
Office of the Comptroller of the Currency
Department of the Treasury
250 E Street, S.W.
Washington, D.C. 20219

Dear Comptroller Dugan:

America””s Community Bankers is writing to you to express our concern with an ordinance recently adopted in Montgomery County, Maryland and its affect on financial institutions and residential mortgage lending in that county. The Montgomery County Council (“Council”) adopted Ordinance 36-04, entitled “Commission on Human Rights Discrimination in Housing” (“Ordinance”), which is scheduled to take effect, tomorrow, March 7, 2006. We believe that the Ordinance will adversely affect residential mortgage lending in Montgomery County and respectfully request that your office formally review the Ordinance for consistency with federal law.

ACB is committed to ensuring that all Americans have fair and equitable access to credit and that consumers have the necessary skills to make wise credit and other financial decisions. ACB supports the development of national, anti-predatory lending standards to create uniformity and ensure consistency among locality-based mortgage lending initiatives.

Although the Ordinance has been codified under the Consumer Protection, and Human Rights and Civil Liberties chapters of the Montgomery County Code, the legislative history clearly shows that the purpose of the Ordinance is to regulate lending practices in Montgomery County in an effort to curb predatory lending. The Maryland State legislature adopted several anti-predatory lending measures in 2002.

Lenders and investors have raised concern that the Ordinance will not achieve its goal because the language is vague and ill-defined, yet imposes severe penalties for any violation. The concern is that a lender or investor will be subject to liability without being able to determine what loans would be considered “discriminatory” under the Ordinance.

The American Financial Services Association and seven mortgage lenders have filed suit to invalidate the Ordinance. National City Mortgage Co., Bear Stearns, and Lehman Brothers”” Aurora Loan Services LLC among others have decided not to lend in Montgomery County citing concerns about vague requirements, excessive penalties, and potentially unlimited liability. Thus, the effect of the Ordinance would appear to be to curtail legitimately supplied credit to the borrowers about which the Council is most concerned.

Based on the above, ACB urges your office to review the Ordinance””s effect on national banks and to take appropriate action. We have made a similar request to the Office of Thrift Supervision with respect to federally chartered savings associations. We appreciate your prompt attention to this matter.

Sincerely,

Diane Casey-Landry