N.C. Attorney General Roy Cooper told two of the state's congressional delegation this week that he wants them to remove language in their predatory lending bill that would preempt state law.
"The proposed new law (in Congress) has significant problems in the area of remedies and enforcement," Cooper wrote Miller and Watt on Thursday, Barb Barrett reports.
The bill, H.R. 1728, the "Mortgage Reform and Anti-Predatory Lending Act," has the goal of ensuring that borrowers can afford to pay back their loans they take out.
It was introduced by U.S. Reps. Brad Miller of Raleigh and Mel Watt of Charlotte, both Democrats.
Cooper wrote that the bill would pre-empt protections in North Carolina, which is considered one of the strongest state laws in the country. Consumer advocacy groups also question the preemption clause in the bill.
More after the jump.
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"In North Carolina, subsequent holders and investors are liable for violations of the Predatory Lending Act and studies have shown that there have been no disruptions in North Carolina's lending market," Cooper wrote.
"Consumers shouldn't be left out in the cold just because their lender sells their loan to another company. In addition, respected consumer advocates tell me that HR 1728 could make it more difficult for homeowners to defend foreclosures in North Carolina even when they have a meritorious claim," he wrote.
Despite his criticism, Cooper also thanked Miller and Watt for working on the issue. The bill is expected to be voted on in the House Financial Services Committee next week.
Cooper, a Democrat, is considered a possible candidate for U.S. Senate in the 2010 race against incumbent Republican Sen. Richard Burr.
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Re: Cooper objects to lending bill
Feds trying to take over state laws?? If I remember correctly, the federal government has limited powers that are supposed to be secondary to state laws in all areas except military, foreign policy and a few other minor areas. I guess that Chairman Obie and his Socialist sponsors and his socialist predecessors have found they can violate the constitution with aparent ease in the area of social legislation as they wait until they have a Majority of like thinking Supreme court Justices in place beflre they do thier dirty deeds knowing they will be abetted by these liberals in the pursuit of a "socialistic" government!