FOR IMMEDIATE RELEASE:

PHILADELPHIA PREDATORY LENDING TASK FORCE OPENS HOTLINE; INITIATES EDUCATION CAMPAIGN 215-324-5000

The Philadelphia Predatory Lending Task Force today begins operation of a telephone hotline, specializing in information for homeowners about predatory lending. Callers to 215-324-5000 can report abusive lending practices, receive referrals for assistance or obtain counseling prior to signing for a loan.

Predatory lending refers to loans that carry excessive fees, exorbitant interest rates, unneeded credit, life or non-homeowner insurances and other financial add-ons. Such a loan is most often applied as a second mortgage against a home with the owner usually spending the money on home improvements or debt consolidation. Operated by the task force through Northwest Counseling Service Inc. (NWCS), the hotline is one component in its citywide campaign to educate borrowers. A website www.philatask.com is another.

Beginning in early March, the task force will partner with churches, senior centers, nonprofit groups and government agencies to present a series of informational seminars. Topics will include how to determine your credit worthiness, ways to compare the terms of various loan companies and the importance of counseling and document review before signing loan agreements.

"Predatory loan practices most often adversely affect senior citizens, women, minorities and residents of low-income neighborhoods," says Michelle Lewis, president and chief executive officer of NWCS. "These homeowners often have bad credit and their only asset is their house. Many elderly owners live on a fixed income but have a lot of equity built up in their homes."

Last fall, alarmed by the growing number of NWCS clients who were facing mortgage foreclosures due to being victims of predatory loans, Lewis developed the Philadelphia Predatory Lending Task Force and is its chairwoman.

"Our goal is to eliminate deceptive practices in mortgage lending to Philadelphians. We want to encourage the growth of responsible lenders and provide access to fair lending in city neighborhoods," she states. Task force members include:

U.S. Sen. Arlen Specter; U.S. Rep. Robert A. Brady; State Rep. Dwight Evans; City Council members Marian Tasco, Jannie Blackwell and W. Wilson Goode Jr.

Local agencies with representatives are:

Pennsylvania Attorney General's Office; City Solicitor's Office; Philadelphia Office of Housing and Community Development; FannieMae; The Reinvestment Fund; ACORN; Community Legal Services; Housing Association of Delaware Valley; Metropolitan Philadelphia Policy Center; Association of Real Estate Brokers of Philadelphia; GMAC Mortgage; and Radian Guaranty.

Representatives from the U.S. Department of Housing and Urban Development, Mid-Atlantic Region, participate in an advisory capacity.

NOTE TO EDITORS: Michelle Lewis is available for interviews.

Philadelphia Predatory Lending Task Force
"Keeping residents informed and protected"