Nebraska, Other States Target Predatory Lending.
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Nov. 22–Predatory lenders who have been stripping vulnerable borrowers of their homes, savings and peace of mind now find themselves in the crosshairs of officials, including a Nebraska state senator, bent on tougher regulations. New laws have been introduced or are being drafted in at least 12 states. Chicago passed a municipal ordinance in September and North Carolina implemented a state law in October, according to the Coalition for Responsible Lending. State Sen. Mark Quandahl, Omaha, is preparing a bill to limit predatory lending for introduction in the state legislative session that begins in January. In Iowa, the state attorney general has begun prosecuting suspected predatory lenders. Several other state attorneys general also are turning their attention to the practice, which skates the line between illegal and legal conduct and has been blamed by Federal Reserve Chairman Alan Greenspan for undermining entire communities. “Across the nation, predatory lenders are being taken to task,” said Gary Fischer, of Family Housing Advisory Services Inc., Omaha. “It’s like the lights have gone on and they’re been caught with both hands… |