E2394 CONGRESSIONAL RECORD — Extensions of Remarks December 20, 2001
From Predatory Lending Act,’’ much needed This problem is getting worse, not better. also been extremely active in Rotary Inter-
legislation to prevent predatory lending. This According to an ACORN study, Separate and national and will serve as district governor for
year, my home state of California became the Unequal 2001: Predatory Lending in America, 2002–2003.
third state in the nation to pass a law regu- which was released last month, African-Amer- But, Mr. Speaker, when I worked with Ross
lating predatory lending practices. Reverse ican homeowners who refinanced in the Los Childs, I wasn’t working with a resume or a list
redlining or predatory lending encompasses a Angeles area were 2.5 times more likely to re- of titles. I worked with a dedicated public serv-
number of lending practices that target minor- ceive a subprime loan than white homeowners ant, a man who was a consumate advocate
ity communities, employing interest rates and were and Latinos were 1.5 times more likely to for his Grand Traverse County, whether he
service fee charges that are significantly high- receive a subprime refinance loan. And this is was laboring on behalf of an individual or for
er than those prevailing in white communities. not merely a function of income: Upper-in- the county’s largest employer, Munson
Such predatory lending practices are prevalent come African-Americans and middle-income Healthcare.
in many areas across the country and federal African-Americans were more likely to receive I have worked with Ross on numerous
action in this area is long overdue. a subprime loan than low-income white home- issues, including funding for a new airport ter-
Home equity loans have historically been owners when refinancing. Middle-income minal at Cherry Capital Airport, funding for
the privilege of the middle class and wealthy, Latinos were also more likely to receive a roads in the county, and projects at the Coast
who generally have high credit ratings, in- subprime refinance loan than low-income Guard air station in Traverse City. In between
come, and home equity. However, beginning whites. dealing with major projects or problems, I al-
in the 1980s, non-depository finance compa- We must continue to scrutinize predatory ways knew that when the National Association
nies—lending institutions other than commer- lending practices and protect American con- of Counties met in Washington, D.C., Ross
cial banks, thrifts, and credit unions—began to sumers who are easy targets for the predatory would arrive with a list of county issues for me
provide home-equity loans to lower-income lending industry. Congress and federal agen- to work on.
communities, which were not served by main- cies must recommit our efforts to ensure that Ross and his wife Helen have two daugh-
stream lenders. greater opportunity to credit access means an ters, Mary and Susan. As a change from our
Persons in low-income communities typically increase in quality of life, not an increase in usual meetings in Washington, it was a pleas-
have little disposable income, but may have predatory lending and foreclosure. I will con- ure for my staff and me to be able to show
substantial home equity as a result of paying tinue fighting on the federal level until preda- Ross, Helen and Susan some of the sights of
down their mortgages or through the apprecia- this great city when they came here on a fam-
tory lending is eliminated and the term will
tion of their property values. This equity can ily visit.
only have relevance in history books. I encour-
secure sizable loans. While offering loans to That doesn’t mean we haven’t had our dif-
age my colleagues to support my legislation
low-income and minority communities can ferences, Mr. Speaker. I ask you to recall that
and look forward to working with you to elimi-
benefit these communities, predatory lending Ross in an alumni of the University of Michi-
nating this blight from our communities.
practices, which oftentimes use the borrowers’
f gan, a school he not only attended but rep-
home as collateral, have milked the last drops
resented on the hockey rink. Waving those
of wealth from many of these neighborhoods, TRIBUTE TO K. ROSS CHILDS ON Michigan school colors of maize and blue in
leading to increased poverty and public de- THE OCCASION OF HIS RETIRE- front of a Michigan State supporter like me is
pendence. MENT AS COUNTY ADMINIS-
My bill adds important protections to the law like waving the proverbial red flag in front of
TRATOR FOR GRAND TRAVERSE a bull.
that will save many people from losing their COUNTY, MICHIGAN
homes. My legislation would prohibit the in- Mr. Speaker, let me add a personal note of
dustry from making false, deceptive or mis- appreciation. Ross and Helen lost their son
leading statements or engaging in unfair or HON. BART STUPAK Scott, a hockey player like his father, in an
deceptive acts or practices, and prohibit blank OF MICHIGAN auto accident some years ago. When my own
terms in credit agreements that are filled in IN THE HOUSE OF REPRESENTATIVES son BJ died last year, Ross was there at the
after the consumer has signed. In addition, it Thursday, December 20, 2001 funeral to lend his support. We share a pro-
would prohibit prepayment penalties and the found loss that never quite heals, and I will al-
Mr. STUPAK. Mr. Speaker, I rise tonight to ways remember and appreciate his true ex-
financing of credit insurance. pay tribute to a dedicated public servant, K.
My bill will prohibit the ‘‘flipping’’ of con- pression of sympathy and genuine concern.
Ross Childs, who is retiring after serving as So, Mr. Speaker, K. Ross Childs is giving
sumer loans, in which the borrower refinances
County Administrator for Grand Traverse up the reins of power in Grand Traverse
an existing loan when the new loan does not
County, Michigan, since 1976. Ross will be County, and in one of his final acts as admin-
have a reasonable, tangible benefit to the con-
honored on January 5 at a special celebration istrator he has helped hire and mentor Dennis
sumer. This practice of flipping often costs the
in Traverse City by the many friends and col- Aloia, who comes from Marquette in the Upper
consumer thousands of dollars in fees and fre-
leagues he has touched in his long career. Peninsula of Michigan. As a U.P. resident my-
quently leads to foreclosure. My bill will elimi-
A review of Ross’ professional resume re- self, I am pleased to see that Ross has
nate the practice of charging fees for services
veals an individual who acquired a broad base learned what a great value and resource the
or products not actually provided. It will also
of skills that ably suited him for the job of U.P. can be for Grand Traverse County.
prevent collusion between lenders and ap-
county administrator. A Canadian citizen by While Ross may be leaving his post as
praisers or home improvement contractors by
prohibiting direct payments to home improve- birth, he did his undergraduate studies in the county administrator, he will remain active in
ment contractors without a consumer cosigna- community of Owen Sound, Ontario. He came northern Michigan as regional governor of Ro-
ture and prohibits creditors from influencing to the U.S. in 1955 to earn an engineering de- tary, a organization to which he has been ex-
the judgement of an appraiser. gree at the University of Michigan, and his tremely dedicated for many years.
My legislation will remove the shroud of se- postgraduate studies included courses in engi- I ask you, Mr. Speaker, and our House col-
crecy that currently surrounds the application neering, business administration and public leagues to join me in congratulating this public
process by requiring that a consumer receive administration at U. of M. and Detroit’s Wayne servant on a job well done and in wishing
disclosure of his or her credit score and an ex- State University. Ross and Helen Childs the best in their retire-
planation of the methodology used to calculate This resume also reveals an administrator ment years.
the credit score, if one is used by the lender. who recognized that being in charge of a di- f
My legislation will impose restrictions on late verse and growing county required close co-
payments and apply additional safeguards by ordination with local public and private organi- CONGRATULATIONS TO MR. AND
lowering the threshold for high cost mort- zations. At various times Ross has served as MRS. FLORENIO BACA
gages. a member or officer of, among others, the
Finally, my legislation will prohibit steering Michigan Leadership Institute, the Grand Tra- HON. JOE BACA
consumers into loans with higher risk grades verse Commons Redevelopment Corporation, OF CALIFORNIA
than the consumer would qualify for under Leadership Grand Traverse, the Traverse Bay IN THE HOUSE OF REPRESENTATIVES
prudent underwriting standards. This is merely Economic Development Authority, the Tra-
the latest in a long line of practices that have verse City Convention and Visitors Bureau, Thursday, December 20, 2001
targeted minorities and low and moderate in- the Traverse City Area Chamber of Com- Mr. BACA. Mr. Speaker, it is my privilege to
come families, shutting them out of the Amer- merce, National City Bank, Blue Cross Blue announce to you and to the rest of my es-
ican Dream of homeownership. Shield, and Munson Medical Center. Ross has teemed colleagues, that on January 5, 2002,
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December 20, 2001 CONGRESSIONAL RECORD — Extensions of Remarks E2395
Flornio and Escolastica Baca will celebrate tive effect upon her local community, Dr. they were helping someone in need deserve
their 50th wedding anniversary. The couple Davis’ leadership has been instrumental in protection from these scam artists,’’ Mr.
will renew their wedding vows in a ceremony strengthening the bonds between the cities of O’Neill said at the White House. The Treas-
ury also announced action against the Al
at Mt. Saint Joseph’s Catholic Church in Bar- Corona and Norco, along with their business Aqsa Bank and the Belt al Mal Holdings
stow, California. and educational communities. Company, a bank that it described as ‘‘direct
Florenio and Escolastica were both born in Dr. Brenda Davis holds a Doctor of Edu- arms of Hamas.’’
New Mexico. Florenio was one of thirteen chil- cation degree in Curriculum and Teaching, a I ask that the full text of the article follow my
dren born to Seledon and Isabeleta Baca, Master of Education Degree in Psychiatric— remarks.
while Escolastica was only one of two children Mental Health Nursing and Bachelor of It seems clear that the Holy Land Founda-
born to her parents, Rafael and Eufelia Gar- Science in Nursing all from Teachers College, tion for Relief and Development is an organi-
cia. Eufelia, now 89 years old, is the couple’s Columbia University in New York. Dr. Davis is zation that serves as the fundraising arm of
only surviving parent. recognized as a very effective administrator Hamas, which is responsible for hundreds, if
Florenio and Escolastica married on Janu- and has held several administrative positions not thousands, of terrorist deaths in Israel over
ary 28, 1951 in La Joya, New Mexico, and at Riverside Community College, including Di- the years, with a recent surge of murder of in-
shortly afterwards the pair moved to Barstow, rector, Department Chairperson of Nursing; nocent young people in Jerusalem, Tel Aviv
California. Florenio worked for the Santa Fe Dean, Nursing Education; Dean, Grant and and Haifa.
Railway and later went to work for a civil serv- Contract Services. I do not believe that the American people,
ice position only to return to the Santa Fe Brenda’s tireless, engaged action have pro- especially American Muslims, are intentionally
Railway until his retirement. A hardworking pelled the City of Corona forward in a positive giving money to support terror. In fact, I am
couple, Florenio and Escolastica were pio- and progressive manner. Her work to promote sure that the vast majority of contributors to
neers of the dual income family as Escolastica the businesses, schools and community orga- this organization believed that their money
worked a variety of jobs until her retirement nizations of the City of Corona make me was going to support the legitimate humani-
from a civil service position in Nebo, Cali- proud to call her a fellow community member, tarian concerns that Americans have about the
fornia. All the while, Florenio and Escolastica American and friend. I know that all of Corona situation in the Middle East.
raised a loving family. is grateful for her contribution to the better- The facts, however, indicate that these con-
The couple was blessed with three children, ment of the community and salute her as she tributions were being used to finance bombs
Gilbert, Sally and Evelyn. Today their children departs. I look forward to continuing to work targeted at innocent civilians.
Mr. Speaker, Americans trust the IRS to de-
are grown and married. Florenio and with her for the good of our community in the
termine what is and what is not a charity. If
Escolastica’s family now includes Gilbert’s future.
there is an organization that is designated by
wife, Tracy Marcum, Sally’s husband, Scott f the IRS to allow contributions to be tax de-
Stapp, and Evelyn’s husband, Joe Bensie.
ON INTRODUCING THE ANTI-TER- ductible, almost all of our citizens would auto-
Their children have given the Baca’s eight
RORISM CHARITY PROTECTION matically assume that the group was legiti-
grandchildren, Lindsay, Courtney, Brandy, mate. The IRS does an excellent job applying
Larry, Erica, Adrian, Ryan and Mathew, and ACT
its regulations very stringently. Unfortunately,
one great-grandchild, Brooklyn. according to the IRS, the Holy Land Founda-
I commend Florenio and Escolastica for HON. STEVE ISRAEL tion did receive these benefits.
demonstrating their commitment to marriage OF NEW YORK Currently, the IRS by internal regulation de-
and family. The couple has provided love and IN THE HOUSE OF REPRESENTATIVES nies charities affiliated with terrorism a tax de-
ongoing support to their children, grand- duction. This is all well and good, but the fact
children and great-grandchild playing an active Thursday, December 20, 2001
is that this could be challenged in court. I be-
role in all of their raising. Mr. ISRAEL. Mr. Speaker, I rise today to in- lieve that the IRS needs a stronger tool. I be-
Today the Baca’s spend most of their time troduce the Anti-Terrorism Charity Protection lieve that this restriction must be in the law.
relaxing at home and visiting their family. Act, a bill that will not only ensure that organi- Finally, Mr. Speaker, during consideration of
Escolastica remains very active at Mt. Saint zations supporting terrorism are denied the the Financial Anti-Terrorism Act, I introduced
Joseph’s Catholic Church. benefits of an American tax deduction, but will an amendment on this issue that Chairman
Mr. Speaker, on behalf of the United States protect innocent citizens from donating well-in- OXLEY, Mr. LAFALCE, and the Committee on
Congress and the people of Califomia, I ex- tentioned contributions to organizations that Financial Services were gracious enough to
tend our sincere congratulations to Mr. and misappropriate funds to support terrorism. accept, though it did not make it through con-
Mrs. Florenio Baca. Mr. Speaker, since September 11th, we ference. The amendment asked that Treasury
f have learned a great deal about Osama bin study how terrorist organizations may use
Laden and the al Qaeda terrorist network. Bin charities to fund their operations. I am gratified
TRIBUTE TO DR. BRENDA DAVIS, Laden apparently is rich, with a personal for- to see that the Department of the Treasury
OUTGOING PRESIDENT, CORONA tune of over $300 million. In addition, a com- and Secretary O’Neill seem to be focusing on
CHAMBER OF COMMERCE plex global financial network exists to supple- this issue and would encourage them to con-
ment his personal fortune. Alarmingly, evi- tinue doing so.
HON. KEN CALVERT dence suggests that organizations in the Mr. Speaker, if we are going to win the War
OF CALIFORNIA United States and abroad have cloaked them- on Terrorism, we must fight the war on every
IN THE HOUSE OF REPRESENTATIVES selves as charitable groups to help funnel front. The financial front is one important bat-
funds to al Qaeda. tleground and we must do everything we can
Thursday, December 20, 2001
The President has already frozen the assets to ensure that our soldiers—not only in Af-
Mr. CALVERT. Mr. Speaker, I rise today to of the Wafa Humanitarian Organization, the Al ghanistan behind rifles but here in America in
honor and pay tribute to an individual whose Rashid Trust, the Makhtab al-Khidamat and front of computer screens—have the weapons
dedication to the community and to the overall the Society of Islamic Cooperation. These they need to defend America.
well-being of my hometown of Corona, CA, is were groups that were supposedly charitable [From the New York Times, Dec. 10, 2001]
exceptional. The City of Corona has been for- organizations, but were mere conduits for rais- BUSH FREEZES ASSETS OF BIGGEST U.S. MUS-
tunate to have dynamic and dedicated busi- ing money for the treacherous acts of Sep- LIM CHARITY, CALLING IT A DEADLY TERROR
ness and community leaders who willingly and tember 11 and other acts of terrorism around GROUP
unselfishly give time and talent to making their the world. (By David E. Sanger and Judith Miller)
communities a better place to live and work. On December 3rd, the Administration froze WASHINGTON, DEC. 4—President Bush sig-
Dr. Brenda Davis is one of these individuals. the assets of the Holy Land Foundation for nificantly broadened his counterattack on
On January 5, 2002, Dr. Davis will be hon- Relief and Development, a foundation based terrorist groups today, freezing the assets of
ored as the outgoing 2001 President of the in Richardstown, Texas. According to a De- the largest Muslim charity in the United
Corona Chamber of Commerce. Currently Pro- States. Mr. Bush accused the charity of sup-
cember 5th article in The New York Times: porting Hamas, the Palestinian militant
vost of the Norco Campus at Riverside Com-
Mr. Bush and Treasury Secretary Paul group that took responsibility for three sui-
munity College, Brenda provides great leader- O’Neill said today that they believe many cide bombings in Israel over the weekend.
ship, administration and supervision over her Muslims who contributed to the Holy Land Mr. Bush’s announcement was a strong
faculty and students. A person with passion Foundation did not know where their money demonstration of solidarity with Prime Min-
and principles, who has strived to have a posi- was going. ‘‘Innocent donors who thought ister Ariel Sharon of Israel, who has urged
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