Academic journal article ABA Banking Journal

A Mortgage Broker Speaks out on Predatory Lending. (Briefing)

Academic journal article ABA Banking Journal

A Mortgage Broker Speaks out on Predatory Lending. (Briefing)

Article excerpt

Counselor, pastor, credit advisor are a lot of roles for one person to handle. For Anthony Kellum, all have a common theme when it comes to helping lower-income individuals and families achieve the American dream of owning a home.

No one claims more passion for this ideal than Kellum, president of Kellum Mortgage Financial Services, Inc., Detroit, and 2002 president of Michigan Mortgage Brokers Association.

Eight years ago, he had no idea that his mortgage broker business, funded by a sub-prime loan, would lead him in such a public way into becoming a crusader against predatory lending.

What defines predatory lending is one of the great mysteries--hardly anyone agrees on just what comprises it. Kellum defines it as fraudulent and deceptive practices that prey on the elderly, minorities, low-income individuals/families, and those that don't have financial knowledge.

As strongly as he feels about these practices, Kellum feels equally strongly that the way to stop them is to better enforce current Laws and further develop financial literacy programs. In Michigan, a law has been proposed that supporters say will help prevent predatory lending. According to Kellum, the Michigan Predatory Lending Practices Act, as currently written, would do more harm than good. "If there is going to be legislation, it should mirror HOEPA [the federal Home Owner's Equity Protection Act]." states Kellum.

Mortgage brokers and lenders in general will be hindered by too many laws, he maintains. The addition of state laws and city ordinances to federal legislation will discourage lending. Such laws would require even more paperwork, says Kellum, which will stop wholesalers from looking in poor neighborhoods for consumers. …

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