December 4 Statewide Anti-Predatory Lending Summit builds momentum!

More than 120 people gathered to strategize policy solutions on specific types of predatory lending practices and to develop a plan to win on the issues at a statewide summit on predatory practices held Saturday, December 4 in Des Moines. Participants presented their policy proposals for stopping predatory mortgages, payday loans and tax refund anticipation loans. The summit was sponsored by Iowa Citizens for Community Improvement (CCI) and other member groups of the Coalition Against Abusive Lending (CAAL).

The Statewide Anti-Predatory Lending Summit was held as a follow up to local hearings across the state. Kathleen Keest and Ardie Hollifield, predatory lending experts from the Center for Responsible Lending in Durham, North Carolina, gave the keynote address and charge for the day.

Sally Riggs and Brad Strasser, both members of CCI’s predatory lending task force, chaired a session on predatory mortgage loans, which more than 80 people attended. The session focused on the need to require licensing of real estate appraisers and mortgage brokers, obtain necessary funding for the state appraisal board to hire two full-time investigators to review complaints, and to partner with good lenders to make sure mortgage needs were being met in all communities.

"If it weren't for these inflated appraisals, a lot of us would have been spared the nightmare of living with a predatory mortgage," said Riggs. "So many of us thought we had equity in our homes. But it was a lie."

Several appraisers participated in the workshop and fully supported the idea that full-time investigators are needed and that all appraisers should be licensed. Currently, Iowa is one of only 8 states which do not require that a person be licensed in order to appraise properties.

CCI members also attended a session on payday lending, led by Sen. Joe Bolkcom of Iowa City. Payday loans are short term loans which feature annual interest rates often in excess of 300%. It is estimated that payday lending costs Iowans nearly $40 million each year. Payday lenders were first given the okay to operate in Iowa in 1995. And today, there are more payday lending offices in Iowa than there are McDonald’s locations.

CCI member Bob Scrivner wrapped up the day by encouraging all to take the momentum at the summit back to their communities to get action on these important issues, “Together we can go beyond our own expectations. We must continue to speak out so these abuses are stopped.”

To learn more about CCI’s work to stop predatory lending or the work of the Coalition Against Abusive Lending visit our predatory lending page or contact Danny at 515/255-0800 or danny@iowacci.org.

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