The Federal Reserve Board has the authority to address mortgage problems, but has not done so, while an estimated 2.2 million U.S. homeowners are at risk of foreclosure resulting from predatory lending.
The regulatory agency even named a representative from one of the worst predatory lenders, New Century, to serve on its advisory council.
The Federal Reserve is holding a hearing June 14 to decide whether it should issue new regulations.
ACORN is calling on the Fed to:
-Prohibit lenders from making adjustable-rate loans that will quickly become unaffordable with rate increases;
-Stop the misuse and abuse of stated income loans;
-Reduce or eliminate prepayment penalties on subprime loans;
-Hold lenders responsible for the actions of brokers;
-Require subprime lenders to escrow for taxes and insurance.
Take action against predatory lending
ACORN members can call or e-mail Chairman Bernanke asking him to ban predatory lending practices.