Lobbyists: Tone Down Anti-Predatory Resolution

Industry lobbyists are trying to tone down a nonbinding resolution sponsored by Rep. Elijah Cummings, D-Md., that would put the House on record in support of tough predatory-lending legislation.The resolution points out that the subprime market has created opportunities for predatory lending and that irresponsible subprime lending has contributed to rising foreclosures rates. "It is the sense of the Congress that legislation should be enacted that protects buyers who have been victims of unscrupulous mortgage brokers and lenders," the resolution says, adding that such legislation should include "an anti-predatory lending provision that bans unfair and deceptive practices." Lobbyists expect the House Financial Services Committee to vote on the Cummings resolution during a June 26 mark-up session -- but the committee has not placed it on the agenda yet. Wright Andrews, executive director of the Coalition for Fair and Affordable Lending, said he expects the resolution to be refined before a mark-up. "The congressman's resolution is well-intentioned, but it could lead to unintended consequences for, not only industry, but the people he is interested in protecting," Mr. Andrews said.