House Subcommittees to Evaluate Legislation Solutions to Predatory Lending

WASHINGTON – The House Financial Services Subcommittee on Housing and Community Opportunity will join the Subcommittee on Financial Institutions and Consumer Credit for a joint hearing on May 24 on predatory and abusive mortgage lending practices, particularly in the subprime market, and current legislative proposals to eliminate these types of practices. Rep. Spencer Bachus (R-Ala.), chair of the Financial Institutions and Consumer Credit Subcommittee said, "Uniform standards in the marketplace are essential if the primary and secondary markets are to continue to serve as a vital source of liquidity to make mortgages available to homebuyers with less than perfect credit. I am therefore committed to finding ways to put an end to predatory lending while also preserving and promoting access for all homebuyers to affordable credit." The two Subcommittees held hearings in the 108th Congress on the issue of predatory lending, and Subcommittee on Housing and Community Opportunity Chairman Robert Ney (R-Ohio) said, "This year we look forward to building on the progress that was made in the last Congress as we move forward with a legislative effort to address this growing national problem." Two panels of mortgage professionals are scheduled to testify and among them is Martin Eakes, CEO, Center for Community Self Help, Durham, N.C. "The goal of any solution to the predatory lending problem must be to target sharp practices while at the same time ensuring that low- and moderate-income consumers continue to enjoy the benefits of readily available mortgage credit.," said House Financial Services Committee Chairman Michael Oxley (R-Ohio).