Predatory lending is a serious problem in Minneapolis and elsewhere and should not be flipped off so casually by Mr. Thompson.
Predatory lending is disguised in different ways but essentially it is an action or series actions undertaken by a lender to conceal the actual terms of a loan from the borrower, and/or a loan where the lender knows it cannot be repaid by the borrower and may result in foreclosure, and/or misrepresenting the terms and conditions of the loan. Quite simply, a predatory loan is a deliberate act designed to take advantage of a borrower. Few consumers know as much about the process or the myriad details of a mortgage or a second mortgage as the loan officer sitting across the table. It is relatively easy to mislead or misrepresent a mortgage loan to a borrower and there are good, honest people in Minneapolis and the entire state who have had their equity stripped or lost their home because of unscrupulous predatory lending practices! Almost all predatory loans are made in the sub-prime market which is especially vulnerable to the siren song of a predatory lender. This was a priority issue for me personally and the Ventura Administration when I was Commerce Commissioner under Gov. Jesse Ventura. We succeeded in getting some reforms passed but not enough. Along with Attorney General Mike Hatch, we also lead a multi-state campaign that resulted in significant changes (thanks to stiff financial penalties) in how sub-prime loans are made. There is still more to be done! Organizations like ACORN, AARP (some seniors are especially vulnerable), Legal Aid, and Legal Services Advocacy Project work diligently to help homeowners who have been financially raped by these unscrupulous lenders. It was both heartbreaking and eye opening for me as Commissioner to meet with and hear people's stories how they had been targeted and then swindled by predatory lenders. I have had the privilege to speak to a number of groups about this issue and would be happy to sit down with Mr. Thompson or anyone else to outline in some detail how predatory loans are made and the horrific impact they can have on families! Jim Bernstein Fulton -----Original Message----- As for the Greens and "predatory lending": what exactly is "predatory lending?" Seems to me if one doesn't want to pay 10% or 24% or 48% on a loan, the answer is quite simple: don't get the loan. Must we have yet ANOTHER law that protects people from themselves? "Living wage" and "predatory lending" are advertising buzz words that sound really neat when preaching to the great unwashed, but practical application of these concepts in the real world is unwieldy, impractical and borderline socialistic. Mike Thompson Windom REMINDERS: 1. Be civil! Please read the NEW RULES at http://www.e-democracy.org/rules. If you think a member is in violation, contact the list manager at [EMAIL PROTECTED] before continuing it on the list. 2. Don't feed the troll! Ignore obvious flame-bait. For state and national discussions see: http://e-democracy.org/discuss.html For external forums, see: http://e-democracy.org/mninteract ________________________________ Minneapolis Issues Forum - A Civil City-focused Civic Discussion - Mn E-Democracy Post messages to: mailto:mpls@mnforum.org Subscribe, Un-subscribe, etc. at: http://e-democracy.org/mpls -- No virus found in this incoming message. Checked by AVG Anti-Virus. Version: 7.0.323 / Virus Database: 267.6.7 - Release Date: 6/10/2005 -- No virus found in this outgoing message. Checked by AVG Anti-Virus. Version: 7.0.323 / Virus Database: 267.6.9 - Release Date: 6/11/2005 REMINDERS: 1. Be civil! Please read the NEW RULES at http://www.e-democracy.org/rules. If you think a member is in violation, contact the list manager at [EMAIL PROTECTED] before continuing it on the list. 2. Don't feed the troll! Ignore obvious flame-bait. For state and national discussions see: http://e-democracy.org/discuss.html For external forums, see: http://e-democracy.org/mninteract ________________________________ Minneapolis Issues Forum - A Civil City-focused Civic Discussion - Mn E-Democracy Post messages to: mailto:mpls@mnforum.org Subscribe, Un-subscribe, etc. at: http://e-democracy.org/mpls
