Greenspan criticizes mortgage companies

Posted: Thursday, March 23, 2000

WASHINGTON (AP) -- Federal Reserve Chairman Alan Greenspan used his bully pulpit Wednesday to criticize a growing practice by some mortgage and home-equity loan companies of seeking low-income borrowers and charging them unfairly high fees and interest.

The practice, called predatory lending by its critics, can damage poorer neighborhoods, Greenspan said in a speech to a meeting of the National Community Reinvestment Coalition, a liberal group.

Greenspan said the Federal Reserve is concerned about ''abusive lending practices that target specific neighborhoods or vulnerable segments of the population and can result in unaffordable (mortgage) payments,'' loss of homeowners' equity and foreclosure.

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