An anti-predatory lending campaign was launched in Milwaukee, Wisconsin, on June 7, 2002, as part of National Homeownership Month. The "Don’t Borrow Trouble" campaign was developed by Strategies To Overcome Predatory Practices (STOPP), a coalition that includes HUD, Freddie Mac, Fannie Mae, U.S. Senator Russell Feingold, U.S. Representative Thomas Barrett, the Milwaukee Public Policy Forum, the University of Wisconsin-Extension, Wisconsin Housing and Economic Development Authority (WHEDA), Wisconsin Mortgage Brokers Association, local banks, neighborhood groups, local economic development organizations, and other local community groups.
HUD Midwest Regional Director Joseph P. Galvan, Milwaukee Mayor John O. Norquist, Milwaukee County Treasurer Dorothy Dean and others spoke to more than 150 people at the "Don’t Borrow Trouble" kickoff event. HUD also released a predatory lending study, initiated by the Wisconsin Field Office, that found that mortgage foreclosures of properties financed by subprime lenders increased five-fold between 1995 and 2000.
STOPP was organized to combat deceptive practices and hidden costs that are sometimes attached to subprime loans and can negatively impact a borrower’s home equity. Subprime customers in Wisconsin paid $67.7 million in inflated loan terms last year. STOPP strategies include a public service media campaign, loan market research, and general education activities. Freddie Mac is underwriting the "Don’t Borrow Trouble" campaign public outreach costs, including a toll-free consumer hotline that will be staffed by lenders, homebuyer counselors, fair housing experts, and lawyers.
|Content Archived: July 28, 2011|