Subprime Lending Task Force Hears Emotional Testimony

Subprime Lending Task Force Hears Emotional TestimonyWALLINGFORD, Conn.– Gov. M. Jodi Rell’s Task Force on Subprime Lending heard testimony during its first hearing from a consumer who tearfully described how she had been allegedly victimized by predatory lending tactics. “Like many borrowers, I was steered into this adjustable rate without being given a choice and was lied to by my broker about how it worked and what I could do,” Donna Pearce said. “Even though I had good credit, I was given two separate loans–one with an 8.6% interest rate, and another with a 13% interest rate. When I asked my broker about it, she told me not to worry because I could just refinance in six months.” Pearce, with help from her family, made her mortgage payments until this spring when she learned she would not be able to refinance. She then began receiving notices of foreclosure. Kevin Chandler, CEO of the Credit Union League of Connecticut and a member of the task force, said that this is just the sort of practice the task force is aiming to eliminate.