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RESOLUTION NO; <br /> <br />7587-01 <br /> <br />BY: Corrigan, FitzGerald, George, <br /> Roth, Seelie, Skindell, Smith. <br /> <br /> A RESOLUTION supporting the call of the American Association of Retired Persons <br />(AARP) and Ohio Coalition for Responsible Lending for legislation protecting homeowners <br />from predatory lending practices. <br /> <br /> WHEREAS, the subprime lending industry has grown rapidly in the last few years with <br />the State of Ohio ranking fifth among all states in terms of subprime refinancing loan <br />originations; and <br /> <br /> WHEREAS, some of the subprime lenders engage in predatory lending practices that are <br />stripping families and communities of the.equity they have in their homes; and <br /> <br />WHEREAS, predatory lending is wealth robbing rather than wealth building; and <br /> <br /> WltEREAS, predatory lending practices can include, among other things: repeated <br />refinancing of a loan without any tangible benefit to the borrower; charging excessive <br />prepayment penalties; financing single premium credit insurance; encouraging a borrower to <br />default on his or her other debts; failing to comply with requirements with respect to disclosure <br />of loan terms and loan settlement; making a loan for more than the borrower can repay; financing <br />excessive points and fees; requiring advance payments; charging fees to modify a loan or defer <br />payments; permitting acceleration of a loan at lender's discretion; and increasing the interest rate <br />upon a default; and <br /> <br /> WltEREAS, predatory lending practices lead to a significant economic drain on lower- <br />income families and communitieS; and <br /> <br /> WHEREAS, predatory lending practices contribute to an increase in the number of <br />foreclosures that can result in abandoned houses .and blighted neighborhoods and contribute to <br />the physical and economic deterioration of communities; and <br /> <br /> WHEREAS, neighborhoods and communities, receiving significant public and private <br />commitments for revitalization are being targeted by predatory lenders; <br /> <br /> WHEREAS, over the last several years, the city of Lakewood and its homeowners have <br />reinvested millions of dollars to revitalize our community of homes; and <br /> <br /> WHEREAS, predatory lenders have targeted females and the elderly for such loans in <br />the city Lakewood; and <br /> <br /> WHEREAS, the city of Lakewood and its residents are vulnerable to the ill-effects of <br />predatory lending practices; and <br /> <br /> WltEREAS, predatory lenders are taking assets out of the State of Ohio and into other <br />states; and <br /> <br /> <br />