CAC on Predatory Lending
When it comes to predatory lending concerns, the Consumer Advisory Council has plenty to say. The pressure is still on the FRB to take actions to protect consumers from predators. To accomplish this, they raised several suggestions. First, make purchasers of loans liable for underlying practices. Assignee liability is important to cut off funding for predators. A second element would be full disclosure of all fees. Third, they recommend bans on certain practices, such as single premium mortgage insurance. Finally, they would like to see better regulation and supervision of mortgage brokers at the state level. Consumer advocates are reluctant to support a national definition of predatory lending because they oppose federal preemption.
Copyright © 2004 Compliance Action. Originally appeared in Compliance Action, Vol. 9, No. 14, 12/04
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