Lenders: OTS Efforts to Stop Predators May Miss Target

WASHINGTON - The Office of Thrift Supervision's effort to curb predatory lending has thrift executives worried that legitimate subprime lending could be stigmatized.

"While we feel a strong need to curb abusive lending practices … we nevertheless are concerned that a broad brush approach can have an inappropriate impact on nonpredatory lenders," David S. Madsen, group senior vice president of $41.5 million-asset World Savings Bank of Oakland, Calif., said in a letter to the agency.