SACRAMENTO, Calif. – Whether or not California will become the second state to bar predatory lending will depend on how the state Senate Banking Committee votes on a measure authored by Assembly Member Carole Migden (D-13). A.B. 489 would ban a set of the most egregious predatory lending practices for approximately 10%-20% of the approximate 150,000 subprime loans made annually in California. Among its provisions, A.B. 489 would require a person who originates a consumer loan to establish and implement a best lending practice plan that meets certain minimum standards. It would also require lenders to consider the financial ability of a borrower to repay the loan; prohibit the lender from selling disability, unemployment, or life and property credit insurance without full disclosure of the facts relevant o the loans; and prohibit intentionally delaying the closing of a loan for the sole purpose of increasing the interest rate, costs, fees or other charges payable by the borrower. At press time, the bill was scheduled for a hearing before the Senate committee on Aug. 30.