|Lender Exits Prompt D.C. Lawmaker To Seek Suspension Of Anti-Predatory Law
Chase, Household among companies to exit
November 5, 2001
By MortgageDaily.com staff
Chase Manhattan Mortgage Corp. said it will not make second-trust or equity loans in Washington D.C. because of the burden of disclosure forms under the city's new anti-predatory lending law, according to a story in the Washington Post (Post). Such lender moves have reportedly prompted D.C. Council member Sharon Ambrose (D-Ward 6), chairman of the panel's Committee on Consumer and Regulatory Affairs, to seek an emergency vote to suspend the law. The Post said that, in her current position, Ms. Ambrose has jurisdiction over the lending industry.
Other lenders reported to have pulled out of the home equity and subprime business in Washington D.C. include:
The rules have "caused a significant amount of confusion and complication in the real estate market," Ambrose was quoted as saying. Because of the national economic downturn and the terrorist attacks, she reportedly said she doesn't want to do anything to make it worse.
The Post quoted mortgage brokers who are against the law while pointing out that the city's banking regulators and consumer groups, including AARP and the National Community Reinvestment Coalition, are rallying to keep the law in place or modify it only slightly.