MBA To Educate Consumers of Predatory Lender Warning Signs by Lew Sichelman
The Mortgage Bankers Association isn't waiting for Congress or the White House to come to do something abusive lending practices. In conjunction with the National Council on Economic Education, the MBA is launching a pilot program aimed at teaching consumers the warning signs so they can recognize predatory lenders when they strike. The experimental program will help the elderly, uneducated and other potential marks identify unfair credit practices that can quickly strip away their equity and cause them to lose their homes. Participants will learn how to identify the tell-tale signs and avoid being forced into a cycle of debt and bad decisions. The course also will provide essential personal finance information, including such topics as managing money, how to spend today so you can save tomorrow, the importance of good credit and key mortgage qualification requirements. Armed with this knowledge, first-time buyers will be better prepared for home ownership. Called the Homebuyer Education and Learning Partnership, the pilot will target both adults and students in five states Alabama, California, Illinois, Massachusetts and Virginia and the District of Columbia. "Our goal is to educate consumers so that we can help give new life to the dream of home ownership for all Americans," MBA Vice President James M. Murphy said at a Capital Hill news conference this morning. "We want to make sure that our customers are educated consumers, so that they can avoid becoming targets of unscrupulous lenders and, at the same time, learn the financial skills they'll need to get a mortgage and own a home." The MBA, which already has a working relationship with NCEE, is throwing $132,000 into the hopper to support the expanded consumer awareness effort, which also will include workshops for teachers so they can include the economics of home ownership in their classrooms. Members of the MBA state associations will organize and conduct the adult workshops with materials provided by the NCEE state Council's at libraries, schools, universities and other sites. | 
