FED Expects to Release New Mortgage Lending Guidelines in December

WASHINGTON, Nov. 2 /PRNewswire-USNewswire/ -- Today the Reverend Jesse Jackson, Sr. of the Rainbow/PUSH coalition and John Taylor, head of the National Community Reinvestment Coalition, met with Federal Reserve Board Chairman Ben Bernanke and Governor Randall Kroszner to discuss the challenge posed to America's working families by the over two million foreclosures set to occur over the coming months.

Rev. Jackson and Mr. Taylor asked the Chairman to take a more proactive role in encouraging lenders to get in front of the pending foreclosure crisis. They emphasized the disproportionate application of irresponsible subprime loans to people of color and asked the Federal Reserve to look into the pattern and practice of fair lending violations, especially steering.

"Chairman Bernanke displayed a strong sensitivity to our concern that many low-income and minority homeowners are in jeopardy. He showed a depth of understanding of the challenges inherent in addressing these problems," said NCRC President & CEO John Taylor.

Rev. Jackson and Mr. Taylor discussed some of those challenges with Chairman Bernanke and Governor Kroszner, in particular the legal impediments to restructuring problematic loans. There is a clear need going forward to have regulatory guidance that addresses unfair and deceptive practices, including the steering of low-income and minority borrowers to higher cost loans. The Federal Reserve expects to release new guidance in December.

Chairman Bernanke assured Rev. Jackson and Mr. Taylor that he was taking numerous steps to address the foreclosure crisis, including meeting with Secretary of the Treasury. They agreed that it would be valuable to continue to dialogue and collaborate around feasible solutions to the foreclosure crisis.

The National Community Reinvestment Coalition is an association of more than 600 community-based institutions that promote access to basic banking services, including credit and savings, to create and sustain affordable housing, job development and vibrant communities for America's working families.

SOURCE National Community Reinvestment Coalition