2003 Adopted Resolutions
71st Annual Meeting
Denver

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PREEMPTION OF STATE AND LOCAL ANTI-PREDATORY LAWS

WHEREAS, incidences of predatory lending are on the rise in communities all across America; and

WHEREAS, predatory lending often results in foreclosures causing neighborhood blight and community destabilizing; and

WHEREAS, predatory lenders target society's most vulnerable populations such as the elderly, low income individuals, and minorities; and

WHEREAS, predatory lenders, charge more in interest and fees than is required to cover the added risk of lending to borrowers with credit imperfections; make loans with abusive terms and conditions that trap borrowers and lead to increased indebtedness; and do not take into account borrowers abilities to repay the loans; and

WHEREAS, many state and local governments have passed strong anti-predatory lending laws to protect consumers from predatory lenders; and

WHEREAS, legislation has been introduced in the U.S. Congress that would establish a weaker Federal standard and would preempt all state and local anti-predatory laws; and

WHEREAS, other legislation has been or will be introduced that would establish a stronger federal standard, and would not pre-empt state and local laws,

NOW, THEREFORE, BE IT RESOLVED that the U.S. Conference of Mayors opposes the enactment of any federal legislation which would pre-empt state and local anti-predatory lending laws. The U.S. Conference of Mayors supports enactment of legislation creating an effective national standard, while leaving in place stronger state and local laws on predatory lending.