As the rate of foreclosures continues to accelerate in the country’s overheated real estate markets, many state and local legislators are turning their attention to the predatory lending tactics that greatly contributed to bringing these home buyers to the brink in the first place.
Be it simply election year politicing or genuine concern for the uninformed, unsuspecting home buyer, many state legislators have sponsored bills that would significantly restrain the tactics used by predatory lenders.
The following are some recent state and local anti-predatory lending activities:
1. Ohio – June 2006, Governor Taft signed Bill 185 that “seeks to toughen state laws to prevent unscrupulous mortgage brokers, loan officers and others from taking advantage of consumers”. The bill goes into effect January 1st 2007.
2. Rhode Island – June 2006, State assembly passed the Rhode Island Home Loan Protection Act better known as the “predatory lending” bill. The bill now awaits the expected signature of Governor Carcieri.
3. Tennessee – June 2006, Governor Bredesen signed into law bill to restrict predatory lending practices.
4. Maine – June 2006, Governor Baldacci asked the Office of Consumer Regulation to study the issue of predatory lending and the effects it has had in creating a wave of foreclosures that is currently plaguing the state. Legislation is likely forthcoming.
5. Illinois – June 2006, Governor Blagojevich signs additional consumer protection law banning misleading solicitations from entities posing as savings institutions which complements a prior predatory lending law signed in 2003.
6. Massachusetts – August 2004, H4880 Chapter 268 of the general laws, an Act Prohibiting Certain Practices in Home mortgage Lending went into effect.
7. Boston, Massachusetts – May 2006, Mayor Menino meets with representatives from Ameriquest, seeking monetary “commitments” to fund a loan rescue fund that would give home owners an alternative to foreclosure.
8. Buffalo, New York – June 2006, Mayor Byron W. Brown indicates that the city would “put its weight behind efforts to prevent residents from falling victim to financial abuses, including suits against lenders and other companies that take advantage of low-income consumers.”
9. California – June 2006, Federal Reserve Board convened hearings on home lending abuses. Many community groups urge a crackdown.
Additionally, Federal legislators have crafted two bills now pending in the House of Representatives that would address predatory lending at the Federal level. HR 1295: The Responsible Lending Act, and HR 1182: The Prohibit Predatory Lending Act would both seek to limit the tactics used by unscrupulous lenders.
As the rate of foreclosures continues to accelerate in the country’s overheated real estate markets, many state and local legislators are turning their attention to the predatory lending tactics that greatly contributed to bringing these home buyers to the brink in the first place. 
