Fourth National: Avoiding Exposure to Regulatory and Civil Actions for

Predatory Lending

The Latest Developments ~ Practical Compliance Strategies

Thursday, April 10, 2003

About

NOT JUST AN ISSUE FOR SUBPRIME LENDERS ANYMORE…

Federal agency regulations, state legislative rules, municipal ordinances and now federal legislation… anti-predatory lending laws continue to proliferate. No longer just a subprime issue, the explosion of fair lending mandates has created a Rubik's cube of lending and reporting requirements. As of the third quarter of 2002, there were over 74 new predatory lending initiatives introduced, bringing the total to over 140 separate and distinct rules nationwide. Significantly, this figure does not include single-issue bills on practices such as flipping or prepayment penalties, which are also on the rise.

While legitimate lenders acknowledge the aim of the legislation - to stop lenders and brokers from unfairly taking advantage of unsophisticated borrowers - the methods of reaching that goal have resulted in a complex maze of conflicting standards and competing definitions. Moreover, with local jurisdictions in the fray and no clear rule on federal or state preemption, it is sometimes easier to completely withdraw from a market rather than risk non-compliance with conflicting policies in this regulatory minefield.

Keeping abreast of the myriad legislation and regulation alone is a full-time challenge. Furthermore, as recent settlements reveal, ensuring full compliance is an arduous task even for the largest and most sophisticated mortgage lenders.

American Conference Institute designed this Fourth National event on Avoiding Exposure to Regulatory and Civil Actions for Predatory Lending to provide everyone involved in mortgage lending, including general counsel, compliance directors, regulatory attorneys and mortgage brokers, with a thorough, up-to-date understanding of the ever-changing legal and regulatory fair lending landscape.

This conference brought together key federal regulators from the DOJ, HUD, OTS and the Federal Reserve Board, state regulators from Florida, Georgia, New York and New Jersey, and industry representatives from Ameriquest, Bank of America, Bank One, Budget Finance, GreenPoint, Irwin Home Equity, New Century Financial, Option One Mortgage and Wachovia Bank. These knowledgeable insiders addressed:

  • The latest on federal preemption and challenges to local and state ordinances
  • How state enforcement officials are addressing potential violations
  • Developments in federal enforcement actions against "predatory" practices
  • What you can do today to minimize your exposure to administrative or civil actions
  • The procedures industry leaders have in place to ensure full compliance
  • What can be done to challenge the validity of predatory lending laws
  • An update on litigation in the subprime market and how you can avoid being targeted by plaintiffs' counsel
  • How to comply with competing provisions

Contents & Contributors

About

NOT JUST AN ISSUE FOR SUBPRIME LENDERS ANYMORE…

Federal agency regulations, state legislative rules, municipal ordinances and now federal legislation… anti-predatory lending laws continue to proliferate. No longer just a subprime issue, the explosion of fair lending mandates has created a Rubik's cube of lending and reporting requirements. As of the third quarter of 2002, there were over 74 new predatory lending initiatives introduced, bringing the total to over 140 separate and distinct rules nationwide. Significantly, this figure does not include single-issue bills on practices such as flipping or prepayment penalties, which are also on the rise.

While legitimate lenders acknowledge the aim of the legislation - to stop lenders and brokers from unfairly taking advantage of unsophisticated borrowers - the methods of reaching that goal have resulted in a complex maze of conflicting standards and competing definitions. Moreover, with local jurisdictions in the fray and no clear rule on federal or state preemption, it is sometimes easier to completely withdraw from a market rather than risk non-compliance with conflicting policies in this regulatory minefield.

Keeping abreast of the myriad legislation and regulation alone is a full-time challenge. Furthermore, as recent settlements reveal, ensuring full compliance is an arduous task even for the largest and most sophisticated mortgage lenders.

American Conference Institute designed this Fourth National event on Avoiding Exposure to Regulatory and Civil Actions for Predatory Lending to provide everyone involved in mortgage lending, including general counsel, compliance directors, regulatory attorneys and mortgage brokers, with a thorough, up-to-date understanding of the ever-changing legal and regulatory fair lending landscape.

This conference brought together key federal regulators from the DOJ, HUD, OTS and the Federal Reserve Board, state regulators from Florida, Georgia, New York and New Jersey, and industry representatives from Ameriquest, Bank of America, Bank One, Budget Finance, GreenPoint, Irwin Home Equity, New Century Financial, Option One Mortgage and Wachovia Bank. These knowledgeable insiders addressed:

  • The latest on federal preemption and challenges to local and state ordinances
  • How state enforcement officials are addressing potential violations
  • Developments in federal enforcement actions against "predatory" practices
  • What you can do today to minimize your exposure to administrative or civil actions
  • The procedures industry leaders have in place to ensure full compliance
  • What can be done to challenge the validity of predatory lending laws
  • An update on litigation in the subprime market and how you can avoid being targeted by plaintiffs' counsel
  • How to comply with competing provisions

Contents & Contributors

HOW (AND WHEN) FEDERAL PREEMPTION WILL IMPACT THE FAIR LENDING LANDSCAPE
Wright Andrews, Jr., Butera & Andrews

WHEN IS A POINT NOT A POINT?
Brendan Kenneally, Irwin Home Equity

HOW (AND WHEN) FEDERAL PREEMPTION WILL IMPACT THE FAIR LENDING LANDSCAPE
Donald C. Lampe, Womble Carlyle Sandridge & Rice

PREDATORY LENDING
Bryan Greene, Department of Housing and Urban Development

DOCUMENTS REGARDING DEVELOPMENTS IN FEDERAL PREDATORY LENDING REGULATION
Robert Cook, Federal Reserve Board

OTS PROPOSES REVISIONS TO PARITY ACT REGULATIONS
Joel Palmer, Office of Thrift Supervision

GEORGIA FAIR LENDING ACT
Thereze G. Franzén, Franzén & Associates
Leslie M. Howell, Franzéen & Associates

SELECTED STATE AND LOCAL HIGHLIGHTS
Michael Knudsen, Knudsen & Associates

STATE REGULATORS SPEAK! UPDATE ON ENFORCEMENT OF STATE FAIR LENDING PROVISIONS
Alvin Narin, New York State Banking Department

PREDATORY LENDING PRACTICES
Bob Tedcastle, Florida Department of Financial Services

NEW JERSEY DEPARTMENT OF BANKING & INSURANCE PREDATORY LENDING STRATEGY
H. Robert Tillman, New Jersey Department of Banking and Finance

PREDATORY LENDING LITIGATION REPORT
Tom Allen, Reed Smith

INCREASED FAIR LENDING ENFORCEMENT ACTIVITY
Andrew Sandler, Skadden Arps Slate Meagher & Flom

NET BENEFIT AND BORROWER'S ABILITY TO PAY: MAKING THE ABSTRACT CONCRETE
Andrea Lee Negroni, Goodwin Procter

PREDATORY LENDING – ALTERNATIVE COMPLIANCE APPROACHES
Joseph Lynyak, Reed Smith

PREVENTING EXPOSURE TO PREDATORY PRACTICES: A PRACTICAL AND LEGAL GUIDE
David Medine, Wilmer Cutler & Pickering LLP

LIVING UNDER THE LAWS: HOW PRIME AND SUB-PRIME LENDERS COMPLY WITH THE REGULATION PATCHWORK
Adam J. Bass, Ameriquest Mortgage Company

LIVING UNDER THE LAWS: BANK ONE'S APPROACH TO THE PREDATORY LENDING REGULATORY PATCHWORK
Michael Lipsitz, Bank One Corporation

LIVING UNDER THE LAWS: HOW PRIME AND SUB-PRIME LENDERS COMPLY WITH THE REGULATION PATCHWORK
James Manion, GreenPoint Financial

BEST PRACTICES ROUNDUP
Christopher J. Tucci, Wachovia Bank

SECONDARY LIABILITY: SELECTED RECENT DEVELOPMENTS
James Mann, Wilmer Cutler & Pickering
David Medine, Wilmer Cutler & Pickering
Greg Baer, Wilmer Cutler & Pickering
Dan Squire, Wilmer Cutler & Pickering

DUE DILIGENCE OUTLINE: PREDATORY LENDING ISSUES
Terry Theologides, New Century Financial Corporation

TO LEND OR NOT TO LEND: LEGAL CONSIDERATIONS FOR NOT DOING BUSINESS IN CERTAIN JURISDICTIONS
Donald C. Lampe, Womble Carlyle Sandridge & Rice, PLLC

SUMMARY OVERVIEW OF THE "PREDATORY LENDING" DEBATE
Wright Andrews, Jr., Butera & Andrews

CHALLENGING PUBLIC PERCEPTIONS
N. Mitchell Feinstein, Budget Finance Company

PREDATORS NO MORE: CHANGING THE PERCEPTION OF THE SUBPRIME LENDING INDUSTRY
Bill Perkins, Potomac Communications Group, Inc.


DOCUMENT TYPES: PRESENTATIONS AVAILABLE: 0