R 127
2003 -- S 0839
Enacted 04/02/03
S E N A T E R E S O L U T I O N
MEMORIALIZING
CONGRESS REGARDING FEDERAL PRE-EMPTION OF PREDATORY LENDING LEGISLATION
Introduced
By: Senators Pichardo, Perry, Ciccone, F Caprio, and DaPonte
Date
Introduced: February 26, 2003
WHEREAS,
Predatory lending abuses that take away homeowners’ equity and lock
borrowers
into high interest rates that pervade the subprime mortgage market (as
evidenced most
recently
by predatory lending settlements entered into by two of the very largest
subprime
lenders),
and Fannie Mae estimates that up to half of borrowers in subprime loans should
be
qualifying
for “A” loans with substantially lower rates and fees; and
WHEREAS,
The targeting of subprime loans to people of color, low-and moderate-
income
families, and senior citizens costs those who can least afford it billions of
dollars each
year
and reverses hard-won progress that has been made on reducing the racial
homeownership
gaps;
and
WHEREAS,
States and localities have responded to the crisis by protecting their
residents
with laws that provide critical safeguards on high-cost home loans without
cutting off
access
to credit, preventing most predatory loans from ever being made in the first
place; and
WHEREAS,
Lenders that make predatory home loans are planning to push legislation
through
Congress to negate all state and local anti-predatory lending laws without
providing any
meaningful,
new protections for consumers; now, therefore be it
RESOLVED,
That this Senate of the State of Rhode Island and Providence Plantations
hereby
calls upon the U.S. Congress to respect the authority of state and local
elected officials to
protect
their constituents from predatory home loans that strip away hard-earned home
equity,
trap
borrowers in excessive interest rates, and frequently cause families to lose
their homes; and
be
it further
RESOLVED,
That the Secretary of State be and he hereby is authorized and directed to
transmit
duly certified copies of this resolution to the Rhode Island Congressional
delegation to
the
Congress of the United States.
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LC02269
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