Intro of NC-Model Predatory Bill on Tap

Rep. Mel Watt, D-N.C., is preparing to reintroduce his predatory lending bill, modeled after the North Carolina predatory lending law, very soon."North Carolina's predatory lending law has worked, and we think it is a good model for a federal predatory lending law," Rep. Watt told a Washington meeting of the Association of Community Organizations for Reform Now. He noted that studies have shown the 1999 North Carolina law has reduced abusive practices without restricting access to subprime loans. Reps. Watt and fellow North Carolina Democrat Brad Miller introduced a similar bill (H.R. 3974) last year. But this time the bill will prohibit binding mandatory arbitration and restrict prepayment penalties on loans with balances under the FHA loan limit ($312,895). Rep. Watt said he has not seen a predatory lending bill that Reps. Bob Ney, R-Ohio, and Paul Kanjorski, D-Pa., are expected to unveil soon. "We are going to [introduce] our bill, and then we will see if we can work together," Rep. Ney said.