WASHINGTON - Reaffirming his commitment to cracking down on predatory lending by national banks, Comptroller of the Currency John Hawke Jr. at the same time admitted the agency is limited in what it can do because sub-prime lending to consumers with spotty or poor credit histories is legal, albeit "deceptive and unfair." Speaking at a conference sponsored by the National Community Reinvestment Coalition, Hawke said the OCC planned to issue an advisory to examiners reminding them "to be on the alert for patterns of predatory lending." He noted that the advisory is intended "to heighten our examiners' awareness of the fact that a predatory lending environment presents a high level of risk for discrimination." While regulating predatory lending is one solution to the problem, Hawke emphasized that, "We must target not just the predators themselves, but the conditions that allow them to flourish. That means encouraging responsible competition in the same markets in which the predators operate."
OCC admits limitations dealing with predatory lenders
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