NCRC Strongly Supports Sarbanes Anti-Predatory Bill

NCRC Press Release

May 1, 2002
Contact: John Taylor or David Berenbaum
(202) 628-8866
Internet Address: *www.ncrc.org

NATIONAL COMMUNITY REINVESTMENT COALITION APPLAUDS INTRODUCTION OF SARBANES ANTI-PREDATORY LENDING CONSUMER PROTECTION ACT OF 2002

Washington DC * The National Community Reinvestment Coalition (NCRC) issued a strong statement today in support of Senator Sarbanes¹ "Predatory Lending Consumer Protection Act of 2002." *"Americans support a strong national policy that will protect homeowners from predatory lenders who profit through equity-stripping and foreclosures. NCRC, on behalf of our over 700 members across the country, applauds Senator Sarbanes for introducing this significant legislation and for taking a leadership role on this critical consumer protection issue," stated John Taylor, President and CEO of NCRC.

Taylor cited a recently released national NCRC poll which found that 86 percent of Americans support the enactment of a new federal law to detect and prosecute predatory lenders in order to prevent "equity stripping" and discriminatory lending. The NCRC survey was conducted by the bi-partisan and nationally known pollsters Laszlo and Luntz (see http://www.ncrc.org for poll results).

Representing NCRC at today¹s press conference, David Berenbaum, NCRC¹s Senior Vice President of Policy stated, "Senator Sarbanes and Representative LaFalce are providing national leadership by advocating for uniform and comprehensive protections against predatory lending. We need a rigorous national statute so that unscrupulous lenders cannot continue to use clever legal devices to avoid liability and regulatory accountability." *

NCRC noted that the Sarbanes bill establishes much needed consumer protections for loans with high interest rates and steep fees. *It limits various loan terms on high cost loans such as prepayment penalties. *The bill also prohibits abusive practices including balloon payments and single premium credit insurance on high cost loans.

To assist consumers, NCRC recently released the second edition of its "Anti-Predatory Lending Toolkit." NCRC¹s Toolkit is a valuable resource for consumers to determine if they have been victimized and to help them find local and federal authorities to address problems with their loans. (The Toolkit also can be downloaded from http://www.ncrc.org.)

Taylor concluded, "When somebody commits a robbery at gunpoint, we throw them in jail. Yet, we do not throw predatory lenders in jail despite the fact that they steal the most important investment that most Americans make during our lifetime * our home. *The ŒPredatory Lending Consumer Protection Act of 2002¹ should move quickly through Congress so that we can realize the wishes of American voters and consumers during this session."

NCRC is a national trade association representing more than 700 community-based organizations and local public agencies who work daily to promote economic justice in America and to increase fair and equal access to credit, capital, and banking services to traditionally under-served populations in both urban and rural areas. *
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