The NCUA Board supports ongoing state regulatory efforts
regarding the issue of predatory lending practices. The
NCUA Board would like to commend the State Supervisory
Authorities on making the elimination of predatory mortgage
lending practices one of their top priorities for the
Year 2000.
Although credit unions are generally recognized to be
a part of the solution and not a part of the problem of
predatory lending, the NCUA Board hereby states its willingness
to support State Supervisory Authorities in their efforts
to review mortgage lending practices of credit unions
as they relate to other types of lenders in order for
the states to determine:
- To what extent, if any, credit union members in their
states are being victimized by predatory mortgage lenders;
- To what extent, if any, credit unions in their respective
states can provide alternative mortgage programs to
alleviate the need of members to utilize the services
of those who engage in predatory mortgage practices;
and
- What, if any, regulations may be warranted at the
state or federal level to more effectively regulate
the possibility of predatory mortgage lending by credit
unions or what regulations, if any, may need to be revised
or withdrawn that may conflict with the effectiveness
of the individual state’s efforts to prohibit predatory
mortgage lending in their respective states.
In order to support the State Supervisory Authorities
in this endeavor and to ascertain the information set
forth above, the NCUA hereby states its willingness to
work on a cooperative basis with the State Supervisory
Authorities to review issues of mutual interest and concern
related to effective regulation of predatory mortgage
lending.
*Final Resolution will appear after publication in the
Federal Register