PROTECTING AGAINST PREDATORY LENDING AND FINANCIAL SERVICES
WHEREAS, predatory lenders charge more in interest and fees than necessary for services ranging from insurance to remittances to rent-to-own agreements, and make loans with abusive terms and conditions that trap borrowers and lead to increased indebtedness, and fail to take into account the ability of borrowers to repay loans; and
WHEREAS, predatory financial service and lending practices target society's most vulnerable populations, including senior citizens, low income individuals, and minorities, and strip hard-earned equity from homeowners, thus putting them at risk of foreclosure and damaging their credit ratings; and
WHEREAS, predatory lending is a key factor in many foreclosures and the creation of vacant properties, leading to decreasing property values for neighboring homeowners and neighborhood blight; and
WHEREAS, many state and local governments have passed anti-predatory lending laws to protect consumers from abusive and predatory lending practices, and many state and local governments are acting to reduce the presence of financial services; and
WHEREAS, families struggling to get ahead can achieve very real improvements in their economic well-being, increasing spendable income and savings when they are not victims of excessive fees, interest, and exploitive financial service
NOW, THEREFORE, BE IT RESOLVED, that The United States Conference of Mayors urges Congress to pass strong mortgage lending and financial service protections, based on existing successful state laws and regulations, which guard against price-gouging practices by unscrupulous brokers and lenders; and
BE IT FURTHER RESOLVED, that the Conference of Mayors urges the Administration to promulgate regulations which restrict the practices of predatory financial service providers.