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| NCRC Alert: FDIC Wants Comments on
Anti-Predatory Memo by January 31 The Federal Deposit Insurance Corporation (FDIC) has drafted a memo which it will distribute to the banks it regulates about how to avoid purchasing predatory loans. This memo is not a regulation prohibiting certain loan practices. Instead, it is an advisory letter on how banks can make sure they are not financing loans that abuse minorities, women, elderly and other traditionally underserved populations. NCRC applauds the FDIC for this effort. Even though it is not a regulation, the advisory letter to banks will help curb predatory practices. NCRC, however, has a number of suggestions on how the FDIC can strengthen its advisory. The advisory, for example, should warn banks to avoid making predatory loans, as well as not purchasing them. It should emphasize that reverse redlining, or targeting minority populations for predatory loans, is a fair lending violation. It should advise banks to not purchase loans with single premium credit insurance. And it should include more explicit advice on the level of interest rates and fees that are considered to be high in the industry and by the Department of Housing and Urban Development. NCRC encourages concerned community groups and citizens to send your comments to the FDIC on their memo. Comments are due on January 31. They can be mailed to Robert E. Feldman, Excecutive Secretary, Attention: Comments/OES, Federal Deposit Insurance Corporation, 550 17th St. NW, Washington DC 20429. They can be e-mailed to comments@fdic.gov. Or they can be made directly through the FDIC's web site (http://www.fdic.gov/). The FDIC web site also has a copy of the anti-predatory lending memo. NCRC's comment letter can be downloaded here. Last Modified: National Community Reinvestment Coalition Suite 540 733 15th Street, NW Washington, DC 20005 Phone: (202) 628-8866 Fax: (202) 628-9800  | ||||||