The payday lending trap has been shorting working families to the tune
of nearly $5 billion
per year ever since the industry exploded onto the scene in the
1990’s. The number of payday lending institutions has jumped
exponentially from 500 in 1990 to about 22,000 today (compared
with 14,000 McDonald's), mainly targeting low-income African
American and Latino communities.
As Congress debates federal financial reform legislation, a key priority
for financial industry lobbyists remains gutting provisions that would
strengthen enforcement by state attorneys general and stopping the
partial restoration of state powers to regulate national bank abuses
against consumers. As we
detailed three years ago, much of the damage to communities from
subprime lending might have been avoided if the Bush Administration had
not been able to shut down most state anti-predatory lending laws early
in the decade.
Given the enormous foreclosure crisis across the nation, there has been a
wide range of foreclosure reforms proposed across the country (see NCSL's partial list here).
PSN has identified four key reforms for 2010, including promoting
mediation before foreclosure, protecting tenants in the foreclosure
process, holding buyers of foreclosed buildings accountable for
maintaining them to prevent blight and potentially discourage additional
foreclosures, and offering those who have been foreclosed on a chance
to rent their old homes to stabilize communities.
Progressive States Network hosted a national conference call with experts and legislative leaders on Tuesday December 15th at 3pm EST to discuss Foreclosure and Predatory Lending Reform, one of the policies included in PSN's 2010 Shared Multi-State Agenda.
There will be 2.4 million foreclosures in
2009 along with 9 million foreclosures between 2009-2012, according to the Center
for Responsible Lending (CRL). CRL also estimates that 69 million homes will lose property value because of nearby
foreclosures for a total property value loss of $502 billion. As part of our Multi-State Shared Agenda,
the Progressive States Network is working with its partners and leading experts
to promote reforms to stem the foreclosure crisis and put in place reforms to
discourage predatory lending practices in the future.