Subprime Lenders Form Coalition

A group of subprime lenders, targeted in several states under predatory lending initiatives, have a coalition aimed to lobby for federal legislation that would preempt the patchwork of state laws that have sprung up over the past few years. It was a national preemption that succeeded in shielding credit unions and banks from California's controversial new credit card disclosure law, recently blocked by a federal court. The Coalition for Fair and Affordable Lending said the numerous state laws and local ordinances make it difficult for subprime lenders to provide affordable housing loans in those jurisdictions.

"We want a consistent set of guidelines that ensure consumers are getting a good deal and that they have enforceable standards to prevent predatory lending," said Scott McAfee, chairman of the group. The coalition includes New Century Mortgage, Option One, Household and Saxon Mortgage, among others.