| WASHINGTON,
D.C. - House Banking Committee member Jan Schakowsky (D-IL) today expressed
disappointment and disbelief over opposition by Senator Phil Gramm (R-TX),
Chairman of the Senate Banking Committee, to efforts to stop predatory
lending practices. Chairman Gramm announced yesterday that Congress should
not act because “there is no definition and no one is quite sure what
constitutes predatory lending.”
Schakowsky
is the author of H.R. 3901, the Anti-Predatory Lending Act of 2000. Her
legislation would amend current statute to protect consumers from newly
developed predatory lending practices.
Below
is Schakowsky’s statement.
“Maybe
Senator Gramm should ask the thousands of senior citizens who are losing
the house that they have owned for decades. Predatory lending exists; it
is increasing; and it is our job as legislators to stop this practice.
This is just the latest example of Chairman Gramm’s determination to ignore
the legitimate concerns of homeowners and families who want to become homeowners.
“I
am disappointed in the Senator’s belief that Congress shouldn’t act against
predatory lenders. Predatory lenders won’t stop victimizing homeowners
while we catch up. From 1993 - 1998, in the midst of this country’s
most sustained economic boom, the National Training and Information Center
found that home loan foreclosures doubled in the Chicago metropolitan area.
The typical victims are seniors who own their homes and they are asking
for help, now.
“It’s
disingenuous to say, as Sen. Gramm has, that Congress can’t act against
predatory lenders until regulators can define the term under federal law.
After all, it’s Congress’ job to define these kinds of abuses. In
fact, federal bank regulators, federal cabinet departments, several states
and cities, a Congressional Committee, four members of Congress who have
introduced legislation with thirty cosponsors, have studied the issue and
identified the problems. Some states and cities have even passed
legislation. It’s time for action.
“Sen.
Gramm’s suggestion would just protect unscrupulous businesses at the expense
of elderly homeowners. It’s typical Texas style compassionate conservatism.” |
