ACORN has been engaged in a major effort to protect our neighborhoods from predatory lending since 1999.  The campaign has included work to shine a spotlight on and reform the practices of individual lenders, and playing a leading role in passing city and state legislation to restrict predatory lending, in winning reforms from federal regulators, and in an ongoing fight to block a bill in Congress aimed at preempting state and local protections.

The overriding purpose of the Ney bill is to preempt state and local consumer protection laws against predatory lending abuses.  Every day, these loans strip away hard-earned home equity and trap families in excessive interest rates, frequently resulting in foreclosure.  But even leaving aside the destructive impact of preemption, the Ney bill would be a huge step backward in the fight against predatory lenders.  Don’t be fooled by the Orwellian attempt to label the bill as anti-predatory lending legislation.

For over two decades, ACORN has waged a campaign against redlining, worked to increase access to credit for low-income and minority neighborhoods, and fought for greater community reinvestment by financial institutions.  Many banks and mortgages have responded with loan products that better meet communities' needs.

The reach and effect of abusive practices by predatory lenders have increased along with the dramatic growth of the subprime industry.  Listed are the more common practices of predatory lenders.