FOR IMMEDIATE RELEASE

DATE: September 14, 2000
Councilwoman Tasco Introduces Resolution to Support Philadelphia Predatory Lending Task Force

Philadelphia, Pennsylvania. Councilwoman Marian Tasco will introduce a resolution to recognize, commend and support the creation of the Philadelphia Predatory Lending Task Force in the first official City Council session after the summer recess at 10:00 AM on Thursday, September 14.

Announcement of the formation of the Task Force will be made at a news conference to be held immediately following the session on September 14 at 11:30 AM in the City Council Caucus Room on the 4h floor in City Hall.

"I wholeheartedly support the mission of the Task Force," says Tasco. "Philadelphia must be at the forefront in reducing and eliminating the use of predatory loans in our neighborhoods. Through the Task Force, we can come up with effective strategies to reduce the proliferation of scams and deceptive practices that are designed to prey on our most vulnerable citizens," says Tasco. While Philadelphia is not on the U.S. Department of Housing & Urban Development's 'hot list' for immediate intervention, the city 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.

The Task Force has been created to bring together key members from government and private industry to brainstorm strategies to address this problem.

Michelle W. Lewis, President and Chief Executive Officer of Northwest Counseling Service, Inc. will head the newly formed Philadelphia Predatory Lending Task Force. She is a forensic real estate expert and fraud examiner. She serves as a technical advisor on real estate matters to the Office of Housing and Community Development in Philadelphia.

"The purpose of the Task Force is to bring all relevant legislative, administrative and community stakeholders together to tackle this problem head on," says Lewis.

Prominent Task Force member U.S. Representative Robert Brady concurs, "Predatory lending abuse is escalating and as a result, increasing numbers of people are losing their homes. The formation of the Philadelphia Predatory Lending Task force is an important step to insure that we rid our communities of this fraudulent practice."

According to John Kromer, a Task Force member and Director of OHCD, the Task Force is needed. "OHCD has made eliminating predatory lending a priority. Our first -time homebuyers have the right to borrow mortgage money at affordable rates without the threat of losing the dream they finally achieved."

Other members of the Task Force include U.S. Senator Arlen Specter; State Representative Dwight Evans; Councilwoman Marian Tasco; Councilwoman Jannie Blackwell; Councilman W. Wilson Goode, Jr.; Deputy Attorney General Gregory Babbitt; Derek Green, Assistant City Solicitor; Hiram Carmona; OHCD, Mary Aull, OHCD; Edwin Easton, Chief Counsel, Northwest Counseling Service, Inc.; Linda Stefchak; Radian Guaranty; George Wright, GMAC Mortgage; Khalil Walker, Housing Association of Delaware Valley; Karen Black, Metropolitan Philadelphia Policy Center; Ira Goldstein, The Reinvestment Fund; Irv Ackelsberg, Community Legal Services; HUD representatives advisory to the Task Force are: Mary Ann Wilson, Acting Secretary's Representative for the Mid-Atlantic Region; Engram Lloyd, Director of the Philadelphia Homeownership Center; Robert Brickley, Chief Agent in Charge, Office of the Inspector General; Wanda Nieves, Director, Office of Fair Housing and Equal Opportunity; Joyce Gaskins, Director, Community Planning and Development, Ann Harrison, Acting Director, Office of Assistant General Counsel; Malinda Roberts, Director, Office of Public Housing.

Creation of the Philadelphia Predatory Lending Task Force was initiated by Northwest Counseling Service, Inc. Northwest Counseling Service, Inc., a non-profit agency, provides a wide range of real estate and housing counseling services to Philadelphia-area residents. The agency recently completed the Fraud Prevention Workshop Series in partnership with U. S. Representative Robert Brady, Councilwoman Marian Tasco and the U.S. Department of Housing & Urban Development. Nominated by HUD for a Best Practices Award, the Workshop Series brought educational sessions to residents in key areas of the city and provided information and training on ways to avoid being the victim of predatory lending and other deceptive practices.

Most Task Force members will be available for interviews at the event.

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