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					BIL:     122
TYP:     Senate Resolution SR
INB:     Senate
IND:     20010111
PSP:     Jackson
SPO:     Jackson, Glover, Ford, Matthews, Patterson and Pinckney
DDN:     l:\s-res\dj\004borr.jh.doc
RBY:     Senate
COM:     Banking and Insurance Committee 02 SBI
SUB:     Predatory lending practices, unfair; Senate subcommittee to study
         problems seeking mortgage loans, etc.; Banks, Property



HST:

Body     Date       Action Description                        Com     Leg Involved
______   ________   _______________________________________   _______ ____________
Senate   20010111   Introduced, referred to Committee         02 SBI



Versions of This Bill




TXT:
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 9               A SENATE RESOLUTION
10
11   TO HAVE A SUBCOMMITTEE OF THE SENATE BANKING
12   AND INSURANCE COMMITTEE STUDY THE PROBLEMS
13   ENCOUNTERED BY LOW INCOME BORROWERS SEEKING
14   HOME EQUITY AND MORTGAGE LOANS, AND TO
15   PROVIDE   THAT     THE   SUBCOMMITTEE  MAKE
16   RECOMMENDATIONS TO THE SENATE REGARDING
17   LEGISLATION TO REMEDY UNFAIR PREDATORY
18   LENDING PRACTICES IN SOUTH CAROLINA.
19
20   Whereas, Federal Reserve Chairman Alan Greenspan has criticized
21   the growing practice by some mortgage and home-equity lenders
22   of seeking low-income borrowers and charging unfairly high fees
23   and interest; and
24
25   Whereas, congressional hearings have indicated an increase in
26   aggressive sales tactics and excessively high interest rates that
27   target vulnerable segments of the population; and
28
29   Whereas, U.S. Housing Secretary Andrew Cuomo has testified to
30   the Congress that predatory lending is a national crisis; and
31
32   Whereas, numerous states are considering legislation to curb
33   predatory lending practices and North Carolina passed predatory
34   lending legislation in 1999; and
35
36   Whereas, a study of the 1998 Home Mortgage Disclosure Act
37   revealed that consumers in South Carolina’s rural low income and
38   minority communities are increasingly turning to high interest
39   lenders to get credit for buying a home or using home equity for
40   the other borrowing purposes; and
41


     [122]                           1
 1   Whereas, an analysis of sub-prime housing loans by Fannie Mae, a
 2   major institutional investor in the secondary mortgage market,
 3   demonstrated that thirty percent of these borrowers would have
 4   qualified for market rate interest; and
 5
 6   Whereas, there are currently no legal protections in South Carolina
 7   to guard against predatory lending practices and excessive rates
 8   and fees for mortgage loans. Now, therefore,
 9
10   Be it resolved by the Senate:
11
12   That a subcommittee of the Senate Banking and Insurance
13   Committee evaluate the problem of predatory lending in South
14   Carolina and make recommendations for protecting consumers
15   from abusive lenders. This subcommittee will be made up of at
16   least five Senators appointed by the Chairman of the Senate
17   Banking and Insurance Committee. The subcommittee shall report
18   to the South Carolina Senate by January 31, 2002, regarding the
19   findings of the subcommittee.
20
21   Be it further resolved that the Senate of the State of South
22   Carolina, by this resolution, recognizes the problems encountered
23   by low income borrowers seeking home equity and mortgage loans
24   and seeks to remedy unfair predatory lending practices in South
25   Carolina.
26                                ----XX----




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