WASHINGTON - Speaking to the Neighborhood Reinvestment Training Institute in Atlanta, Office of Thrift Supervision Director Ellen Seidman put the banking industry on notice to expect to see regulations addressing predatory lending published in the form of an "Advance Notice of Proposed Rulemaking" (ANPR) by the end of March. Recognizing those lenders who have been involved in identifying and fighting predatory lending culprits, Seidman said "Federal and state regulators, as well as law enforcement agencies, need to become more aggressive with lenders engaged in unlawful predatory lending practices - from prohibitions against fraud to the requirements of fair lending." She cited the legislative initiatives states such as North Carolina, Massachusetts, New York, Illinois and Missouri have taken to address the issue, but emphasized that "enforcement is only a piece of the strategy." "The consumers who fall victim to predatory practices often have real credit and other financial needs," Seidman said. "Many are motivated to improve their homes, but place their trust in disreputable contractors...Bringing reputable lenders into the neighborhood is where the real action is." Seidman said no specifics on the proposed regulations were available yet, but she said the ANPR could concern the practice of financing certain fees, such as the single-premium credit insurance on mortgage loans. -
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