The following is some additional information I received regarding the proposed predatory lending rules in Chicago.

Robert

The City of Chicago is currently considering two ordinances on predatory lending practices.

1. Chapter 2-32: This Ordinance would prohibit any bank or savings and loan institution from being designated as a city depository if it, or any of its affiliates, is a predatory lender. The Ordinance was introduced by Mayor Daley on March 13, 2000 and is scheduled to be considered by council's Finance Committee next week. There is apparently significant controversy surrounding this legislation, most of which centers on how the ordinance defines a predatory loan. A copy of the originally proposed ordinance is attached but please note, modifications have been proposed to this ordinance which may not be reflected in this version of same or may not yet be available for review.

2. Neighborhood Ownership Recovery Mortgage Assistance Loan Program: This program is a joint effort between the Neighborhood Housing Services of Chicago, Inc. ("NHS") and Neighborhood Lending Services, Inc. designed to assist homeowners that have been victimized by predatory lending practices. Mayor Daley introduced an ordinance on July 19th to approve, among other things, an agreement between the City and NHS under which the City would provide funds for interim financing of loans until lenders participating in the program provide funds and to provide funds to pay administrative costs incurred in running the program. A copy of this proposed ordinance is attached.