WASHINGTON – The National Association of Realtors® is launching a new consumer education campaign through its membership to help consumers avoid the pitfalls of predatory lending practices that often afflict potential homebuyers with credit problems in today’s hot real estate market.
The object of the policy approved by the NAR Board of Directors on Saturday is to develop standards that balance continued valid uses of subprime loans for borrowers with imperfect credit while avoiding “toxic” loans and abusive lending practices.
“Realtors® are the first stop for consumers in the real estate transaction, and we’re taking a strong stance against the practice by some unconscionable lenders to trap consumers into toxic loans that benefit the lender and not the consumer. Homebuyers should get themselves prequalified for fair and affordable financing, and Realtors ® can educate them on the consequences of some subprime loans that work against the homebuyers’ best interests,” said Al Mansell, president of NAR and CEO of Coldwell Banker Residential Brokerage in Salt Lake City.
“Because of federal preemption by the Office of the Comptroller of the Currency of state lending laws regarding large, federally chartered banks, and Congress’ lack of response to protect consumers, it is even more important that consumers consult with Realtors® about home financing,” Mansell said. Realtors® are ready to refer their customers and clients, when appropriate, to reputable credit and housing counselors, he said.
The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing more than 1 million members involved in all aspects of the residential and commercial real estate industries.
Information about NAR is available at http://www.realtor.org. This and other news releases are posted in the Web site’s “News Media” section in the NAR Media Center.
