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Predatory Lending Statute Of Limitations

There are times when people complain about the number of laws there are in this country. How is anyone to keep track when Capitol Hill keeps adding new laws to the statute books? Even the lawyers find it hard to stay on top of all the changes. That leaves ordinary people with no chance at all. Yet, in some areas, the laws can be very helpful to ordinary people. They may not even need to know if government changes the way in which business is regulated. The people can be protected without them ever being aware of it. So the lobbyists start to work. This is big government not little government. This is the nanny state not the rugged individualism that made the US such a great place to live. People should be allowed to stand or fall on their own without the state having to get involved. We have all heard it all before. And the reason this time? Well, there is a bill in the Senate proposing a national cap on the interest rates charged on consumer loans. The maximum annualized rate would be 36%. Needless to say, the loan industry is up in arms. It seems no-one can lend money and make a profit if interest is pegged at such a low figure. So will the law change? Let us go back to 2006 when the Department of Defense persuaded Congress to impose the same cap on all loans made to military personnel. According to the DoD, the families of those in active service were being victimized. Many families were being forced to pay 400% and more in annual interest. Curiously, no-one chose to see the same rates being charged on loans to ordinary people. As it stands, only fifteen states have stepped in to protect their citizens. When people take cash advances against their next pay check, they are so easily caught in a spiral of debt they cannot escape. Those promoting the current bill justify the general cap by saying there will be no cost to the taxpayer and it will save billions of dollars from being sucked out of the pockets of the poorer members of our society. We need to be clear about one thing. Payday loans do serve a useful function. When many are denied access to bank overdrafts and their credit rating is not good enough to get generous limits on their credit cards, these loans can bridge people when there is a financial emergency. The facility is available with few formalities, the money deposited in the bank account the next working day. It is a quick an easy solution to a short-term problem. But, as it stands, the lenders are acting in a predatory way, abusing those who are dependent on their loans. If the bill passes, the maximum interest chargeable on a payday loan will be 36% but states can enact lower limits. In Arkansas, for example, the cap is 17%. Help is on the way so long as the lobbyists do not sideline this protective measure.

About the Author:

David Mayer is a frequent contributor to http://www.one-click-payday-loan.com/where-are-the-laws-in-all-this.html and is a highly regarded writer, having professionally dealt with numerous subjects. Visit the site to read David Mayer's contributions.

Source - Where are the laws in all this?

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Predatory Lending Minorities

Question: Does this issue by Nader against Obama reminds you of someone now under indictment?

In an interview with CNN on Monday, Nader accused Illinois Sen. Barack Obama of name-calling and challenged him to "address the issues."
"Above all, explain why you don't come down hard on the economic crimes against minorities in city ghettos: payday loans, predatory lending, rent-to-own rackets, landlord abuses, lead contamination, asbestos," Nader said.

http://www.nytimes.com/2007/06/14/us/politics/14rezko.html?pagewanted=1&ei=5088&en=e1200b3bd12fba7c&ex=1339473600&partner=rssnyt&emc=rss

http://www.cnn.com/2008/POLITICS/02/25/nader/index.html

Answer: Maybe because when all each fails to get rid of a pest...a cochroach...they bring in the bazooka.

Nader is there to "save" america and rid us of this evil "perfect" muslim/christian man.

You are right battman. Obama is a chameleon. He changes colors like underwear.
NOW we are finding out that he changes religions the same way.

Hearing on Predatory Lending: Kucinich Opening Statement

Anti Predatory Lending Policy

Finally, a reform bill that puts the responsibility where it belongs - back in the lap of the lender. By toughening some of the old rules, and adding rules that should have been there in the first place, this bill makes the lender more accountable when it comes to negotiating a mortage.

The ominous sounding "Mortgage Reform and Anti-Predatory Lending Act of 2009" introduced by the House Services Committee is moving ahead after a successful 45-19 vote. It still needs be cleared by Senate and signed by the president before being enforced.

If it seems that this bill is moving quickly, it is. Over 2 million subprime mortgages are expected to reset to higher interest rates in the next 18 months, and this reform will be part of the action implemented to reduce the resulting national fallout.

Here are some of the highlights of this bill:

Licensing for mortgage brokers and bank loan officers will become standard.

Previously, larger incentives were paid out to mortgage brokers for securing higher rate or higher risk mortgages; with the new bill, no incentives can be attached to the interest rate or type of mortgage.

Mandatory quality control for mortgages on a national level will be enforced. Standard rules will include encouraging lenders to provide long term, fixed-rate loans with consistent market rates, instead of low interest introductory rates or negative amortization. It will also hold lenders accountable to find terms and rates that are appropriate for the individual borrowers and their ability to repay. Lenders will also be required to offer the option to choose a loan without a prepayment penalty. Mandatory arbitration clauses in most mortgages will also be removed.

If a borrower's rights were not considered according to the rules of this policy, they would be eligible to cancel their loan contract and receive a refund of all payments, fees and legal costs. If a borrower committed fraud or was untruthful about their situation when applying for a loan, they would not be eligible for the same recourse.

Lenders offering anything other than a 30-year fixed-rate loan, is required to maintain a minimum 5% investment in the loan until it is paid off. If it goes into default, they would own part of the loss. Today, lenders simply sell off the loans and walk away. The intention here is to discourage fly-by-night lenders or those offering low introductory rate sales or promotions to entice buyers. Many believe this will put a strain on the smaller mortgage companies, having to set aside securities to cover any potential losses.

Anyone considering refinancing will have to pass a "net tangible benefit" test that indicates that the borrower will be better off financially with the new loan.

Stay tuned for more details. In the meantime, watch for the latest "Credit Card Reform Bill that recently squeaked through the U.S. Senate Banking Committ on a 12 to 11 vote. Although many believe this is an area in dire need of reform, there is the question that it will make it even harder for the average consumer to get credit approval.

About the Author:

Visit LeslieEskildsen.com for all your Orange County real estate needs. Compare the market in surrounding areas including real estate in Mission Viejo.

Source - Spring Ahead With the 2009 Mortgage Reform Bill

DOUCHE BAG LIAR MCCAIN ON FOREIGN POLICY