MARCH 15, 2001
CONTACT: corprel@freddiemac.com
or (703) 903-3933
 

Newspapers Report Legislative Progress on Anti-Predatory Lending Legislation

Newspapers recently reported that legislation aimed at ending predatory lending has gained support in Congress. Freddie Mac has been at the forefront of the mortgage industry with programs and products that help families afford homeownership.'

The peak home buying season is nearly here and mortgage rates are very affordable. This is a great time for new homeowners and for persons looking to refinance their mortgage and lower their payments. But some people who are trying to improve their financial position through refinancing actually become worse off because they fall prey to predatory lending practices - high fee mortgage lending that frequently leads to foreclosure and even bankruptcy.

We want to put an end to predatory lending.

Recently, Freddie Mac made the anti-predatory lending "Don't Borrow Trouble" campaign tool-kit available to cities that belong to the US Conference of Mayors. This is the latest step in a series of actions by Freddie Mac to educate the public on the danger of some lending practices. Over the past few months, the corporation has clearly defined its position on this issue, including mortgage purchase policies that continue Freddie Mac's tradition of finding ways to increase the opportunity for affordable homeownership.

These efforts have garnered the support of elected officials and affordable housing advocates. "By pulling so many different government agencies and community organizations together, Freddie Mac's 'Don't Borrow Trouble' campaign gives us a beachhead where we can combine our resources to stop predatory lenders from inflicting any more damage on our families and neighborhoods," says Las Vegas Mayor Oscar Goodman.

There is no question that Freddie Mac is committed to expanding access to affordable housing, and does not support lending practices that strip equity from borrowers, destroy families and devastate neighborhoods.

The following materials provide further details about the steps Freddie Mac has taken to combat predatory lending practices, as well as reactions from the housing industry.

Freddie Mac Offering "Don't Borrow Trouble" Toolkit To U.S. Conference Of Mayors Members To Fight Predatory Lending.

Freddie Mac, Southern Nevada, Nevada Fair Housing Center, Inc. Team Up To Launch Anti-Predatory Lending Effort

Freddie Mac, 12 Cities Launch National Effort To Warn Borrowers About Predatory Lending Practices.

Freddie Mac Announces Steps to Protect Borrowers From Predatory Lending Practices.

Freddie Mac Chief Credit Officer Outlines Freddie Mac's Position on Subprime Mortgage Loans and Predatory Lending Practices

Freddie Mac Chief Credit Officer Dave Andrukonis Responds to American Banker

Consumers Union Supports Freddie Mac Stand Against Predatory Lending

Neighborhood Reinvestment Corporation Joins Freddie Mac Against Predatory Lenders