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Article: High-Rate-Loan Regulation at Issue As Bankers, Consumers Square Off. (Federal Reserve Board hearing)(Brief Article)
- Article from:
- American Banker
- Article date:
- June 18, 1997
- Author:
CopyrightCOPYRIGHT 1997 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Consumer advocates and bankers clashed Tuesday over the best way to regulate high-interest mortgages and home equity loans.
At a Federal Reserve Board hearing, consumer groups advocated a nationwide cap on interest rates and criminal penalties for lenders who make loans that they know consumers cannot afford.
"People should not be lending at 16% or 18%," said Bruce Marks, president of Neighborhood Assistance Corp. of America. "Who can afford that?"
Fed officials are investigating compliance with the Home Ownership and Equity Protection Act of 1994, which requires lenders who make high-cost loans to give additional disclosures and which provides three ...