Rules debated; critics say legislation too weak

Wednesday, May 25, 2005 | 9:23 a.m.

WASHINGTON -- Bond and banking interests Tuesday endorsed federal legislation creating national protections against predatory mortgage lending, but civil rights groups said the bill could weaken current state laws, hurting minorities and low-income borrowers.

As the House Financial Services Committee opened debate on the measure, the National Council of La Raza was preparing to release a study today showing Hispanics are more likely than other groups to depend on high-cost mortgages, making them prime targets for unscrupulous lenders.

The report and the congressional debate underscore growing concern about predatory lending -- loans with onerous terms that make them virtually impossible to repay. About half of the states now have laws to prevent predatory mortgage lending.

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