The Detroit City Council passed an anti-predatory-lending ordinance Dec. 19 by a vote of 7-to-1.The ordinance, provided to MortgageWire by the Detroit branch of the National Association for the Advancement of Colored People, establishes definitions for what would constitute predatory practices applying to all home loans originated in the city, and sets criteria for what would be designated as “threshold home loans.” Lenders defined as predatory under the ordinance would not be allowed to do business with the city. Fines for violators and a “private right of action” clause giving borrowers the right to sue violators are also stipulated in the ordinance.
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