Subprime Lenders Form Coalition

A group of subprime lenders have formed the Coalition for Fair and Affordable Lending in the hope that it can obtain federal legislation to establish national standards for the nonconforming market. "We want a consistent set of guidelines that ensure consumers are getting a good deal and that they have enforceable standards to prevent predatory lending," said Scott McAfee, chairman of CFAL. (Mr. McAfee is also president and chief executive of WMC Mortgage, Woodland Hills, Calif., a top-15-ranked subprime lender.) CFAL's members want legislation passed that would pre-empt state and local anti-predatory-lending laws, which are making it difficult for subprime lenders to operate in places like Georgia and Cleveland. (The next battleground could be New Jersey, they say.) CFAL members include New Century, Option One, Household, and Saxon Mortgage, among others. More companies are signing up, said Washington lobbyist Wright Andrews, who is the managing director of the coalition and a partner at the law firm of Butera & Andrews. (See the Jan. 20 issue of National Mortgage News for complete details.)