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D.C. Predatory Lending Regulations
Wednesday, 28 November 2001

Numerous articles were published regarding the new D.C. regulations promulgated to curb abusive lending practices. Many lender expressed concern regarding the costs of complying with the new regulations which require, among other things, approximately 35 new forms to fill out, not only for institutions making loans, but also for servicers and lenders foreclosing on borrowers. Several also expressed concern that, due to the complexity of the new regulations, many legitimate loans will be treated as predatory.

In response to the concern expressed by lenders and servicers, the D.C. council passed legislation suspending the predatory lending legislation until March 6, 2001 while the impact of the legislation and possible amendments are considered.