Industry News

Education key to fight predatory lending

Mortgage industry leader calls for financial literacy programs

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The National Association of Mortgage Brokers is urging the creation of financial literacy programs beginning in middle school as one way to address the growing problem of predatory lending. During a Wednesday hearing before the Federal Reserve Board, NAMB President Jim Nabors said that while new regulation and legislation is being considered at the state and federal level, the only way to truly eliminate predatory lending is to empower consumers with knowledge from a very young age. "We have a fundamental choice to make here," said Nabors. "We can continue to layer additional laws and regulations on the lending industry that will eventually drastically restrict loan options for consumers, or we give consumers the knowledge they need to make informed financial decisions." NAMB supports both adult and student financial literacy courses throughout the nation. Nabors said he realizes that this solution will seem too long-term to some, but he said the problem of predatory and abusive lend...