Officials from 4 states today came out agains the pending Ney-Kanjorski bill would weaken laws against predatory lending.

“The Ney-Kanjorski bill pending in Congress and supported by much of the lending industry would gut the strong laws in these states. Another bill, sponsored by Rep. Miller of North Carolina and supported by consumers and civil rights groups, would let states keep strong laws and protect their consumers.”

I do find it odd that the lending industry is nearly unanimously in favor of more restrictions (this bill) since subprime lending has been very profitable for many. The appraiser component of the bill, is more of an empty but magnanimous gesture. In a prior post, I felt that the bill has language intended to protect appraisers from pressure, but the reality is that there are no real preventative measures included. In other words, nada.

See: [The Responsible Lending Act (HR 1295)]

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One Response to “Bill Getting Eaten By Predatory Lending Concerns”

  1. Ashish Shah says:

    Can you identify what aspects of this bill would weaken laws against predatory lending? I sometimes wonder how strong is the lobby of these predatory lenders. Anyway, I believe that you can’t get rid of these predatory lenders, unless the big banks do something more proactive, like setting up more branches in poor neighbourhoods that are infested with predatory lenders. The banks should make innovative efforts to educate the poor people and encourage them to open accounts. In return, they (the banks) should be compensated by some tax credits for doing that. After all, even poor people need some banking. If they can’t get it from the banks they will be forced to go to the predatory lenders who are lurking around the corner.