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DRAFT RESOLUTION BY NCUA BOARD
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or what regulations, if any, may need to be revised or withdrawn that may conflict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