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Saying that "predatory lending practices
represent a frontal assault on homeowners all over America," Senator Paul
S. Sarbanes (D-MD), Chairman of the Committee on Banking, Housing and
Urban Affairs, has announced that the Committee held two hearings on
"Predatory Mortgage Lending: The Problem, Impact, and Responses."
Predatory lenders typically target vulnerable
people with equity in their homes. They underwrite the property instead of
establishing the borrower's ability to repay the loan. The brokers or
lenders make their money by charging extremely high points and origination
fees, and by "packing" other products into the loan, including up-front
premiums for credit insurance, for which they get significant commissions.
The financing of these fees greatly increases the balance of the loan and
results in the borrower getting into financial trouble. These loans often
contain mandatory arbitration clauses that prevent victims from pursuing
their claims in court.
Testifying at the first hearing will be four
victims of predatory lending. Other affected and interested parties will
also testify.
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THURSDAY, JULY 26,
2001
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| Scheduled to appear
before the Committee to tell their stories are: - : (Click here for Links To Testimony)
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They will be followed by:
- The Honorable Thomas J. Miller, Iowa
Attorney General;
- Mr. Martin Eakes, President and CEO,
Self-Help Credit Union;
- Mr. Stephen W. Prough, Chairman,
Ameriquest Mortgage Company; and
- Professor Charles Calomiris,
Professor of Finance, Columbia Business School, and
Co-director
Project on Financial Deregulation, American
Enterprise Institute.
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| The Committee will then
turn its attention to hearing from advocacy groups and industry
associations at a hearing on: |
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FRIDAY, JULY 27, 2001
10:00
A.M.
538 DIRKSEN SENATE OFFICE BUILDING
Scheduled to testify at the session
are: (Click here for Links To Testimony) |
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- Mr.
Wade Henderson
Executive Director
Leadership Conference
on Civil Rights
- Ms.
Judy Kennedy
President
National Association of
Affordable Housing Lenders
- Ms
Esther Canja
President of the Board of
Directors
AARP
- Mr. John A. Courson
President and
CEO
Central Pacific Mortgage Company
on behalf of the
Mortgage Bankers Association
- Mr.
Irv Ackelsberg
Managing Attorney
Community Legal
Services, Inc.
(Testifying on behalf of the National Consumer
Law Center)
- Mr.
Neill Fendly
Immediate Past President
National
Association of Mortgage Brokers
- Mr.
David Berenbaum
Senior Vice President - Program &
Director of Civil Rights
National Community Reinvestment
Coalition
- Mr.
George Wallace
Counsel
American Financial Services
Association
- Ms.
Lee Williams
President
Aviation Associates Credit
Union
on Behalf of the Credit Union National
Association
- Mr.
Mike Shea
Executive Director
ACORN
Housing
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Source: Senate Banking
Committee |
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