In 1996, we were the first state banking department to bring fair lending proceedings against two banks. Just in the last two years, the Department has issued several All Institutions Letters regarding fair lending, including one this week on indirect automobile lending. Then last year, the Banking Board adopted a new High Cost Home Loan regulation, Part 41, to ensure customer affordability and other protections in the sub-prime residential mortgage market. Let me start with a little bit of background. I spend a great deal of my professional time involved with issues relating to encouraging people to become part of the financial mainstream by opening checking and savings accounts and by hopefully helping people to avoid becoming prey to predatory lenders.
Interest rates are lower and good opportunities are ripe for the taking.
Many sub-prime lenders provide valuable services to their customers who do not qualify for credit from a mainstream lender. And yet, deceptive and abusive lending practices that rob consumers of the many opportunities available to them continue to occur. Like everyone here today, we want to prevent the sale and approval of loans that are too expensive for the consumer, that contain unnecessary and unjustified fees and other costs, and that result in homeowners losing equity and ultimately possession of their homes. We also want to make sure that families have access to the credit they need to pursue the American dream of home ownership. As I have indicated, it is important to realize that not all sub-prime lenders are predatory lenders.