It comes with great pride to act as Chairperson for the Philadelphia Predatory Lending Task Force. The City of Philadelphia is experiencing a huge increase in foreclosures due to predatory lending practices. Usually targeting seniors, minorities and low-income communities, predatory lenders generally offer high interest, high fee mortgage loans that sometimes contain unreasonable terms. Some loans may require the purchase of credit, life and disability insurance as a condition of the loan. In the home equity loan market where many of these loans are offered, other questionable practices are seen: unlicensed contractors, inflated appraisals and property flipping (an investor buys a property at a low price, does very little -renovation and resells the property for a very high cost). In many cases, a relationship between the contractor, appraiser, lender and investor has been established. These practices result in excessive loan amounts, unreasonable repayment terms and other highly unfavorable loan terms not otherwise present in a normal loan transaction.

Predatory loans endanger both the hard earned equity that the targeted groups have in their homes as well as the economic health of the communities in which they live. The Task Force has been created to aid in the development of a coordinated attack on predatory loans and practices. Comprised of some of the most knowledgeable, dedicated and informed individuals in the city and, arguably, the country, on the issue of predatory lending, the Task Force members include local, state and federal elected officials as well as key leaders and representatives from relevant public agencies, the private sector and the non-profit community.

The mission of the Task Force is to:

1. Identify predatory lending practices and those who practice;
2. Review existing laws that protect consumers, look at criminal penalties that may be connected to identified predatory lending practices and develop solutions that may include recommending additional legislation or enforcement of existing legislation;
3. Work with private industry to develop and encourage the use of effective mortgage products that target Philadelphia communities;
4. Find effective ways to partner with government agencies such as the U.S. Department of Housing & Urban Development and the Philadelphia Office of Housing & Community Development to collectively find ways to reduce the incidence of predatory practices;
5. Work on ways to streamline the processes for referral of suspicious activity to appropriate entities,
6. Broaden access to and further develop effective consumer education tools designed to educate the public and,
7. Act as a clearing house for information relating to predatory lending.

As I explained to one inquirer of the purpose and role of the Task Force, this will not be a 'jump on the band wagon of a hot issue' group,' but a 'roll up your sleeves, make government and private industry accountable' kind of a Task Force. Encouragement and development of consumer education will be a major focus of the group and we will work with City Councilwoman Marian Tasco, a key legislative leader who has been out front on this issue, to hear testimony from affected residents. There are many people who have been meeting around the state that are focusing on this issue, many of whom now serve on this Task Force.

The purpose of this Task Force is not to replace that dialogue, but to engage the minds of individuals chosen from some of those groups to come together into one large conversation so that we may coordinate our efforts to reduce and hopefully eliminate the practice of predatory lending and its adverse affects on our communities. Each Task Force member was individually picked because of their relevant background or prior commitment and focus on predatory lending.

I look forward to working with these wonderful minds that have been pulled together and consider myself extremely honored and privileged to be a part of this collective effort.