STATEMENT BY SECRETARY CUOMO ON PREDATORY LENDING LEGISLATION PROPOSED BY CONGRESSMAN LAFALCE AND SENATOR SARBANES

WASHINGTON - Housing and Urban Development Secretary Andrew Cuomo today released the following statement on predatory lending legislation proposed by Congressman John LaFalce of New York and Senator Paul Sarbanes of Maryland.

"I commend Congressman LaFalce and Senator Sarbanes on the legislation they are introducing today. In extending important protections to consumers, this bill represents a critical element of a comprehensive strategy to confront predatory lending.

Later this afternoon, HUD will release a national analysis of more than one million mortgages approved in 1998 that demonstrates the enormous disparities in access to conventional home financing.

Even in a time when homeownership has reached record levels in the United States, the data we are releasing show that minority and low-income home buyers are increasingly dependent on subprime lenders. We are concerned that a growing number of these families may be exposed to unregulated predatory practices that financially burden them with high interest rates, excessive fees and front-loaded financing. The Task Force on Predatory Lending is now examining these issues and will report on this growing problem."