October 10, 2002

Bank terrorist joins fight against predatory lending

By TANYA FOGG YOUNG

The head of an aggressive national housing advocacy and lending organization plans to lend his confrontational approach to South Carolina in the fight for stronger regulations against so-called predatory lending.

Bruce Marks, a self-described "bank terrorist," whose methods were described as "extortion" several years ago by U.S. Sen. Phil Gramm, R-Texas, is the chief executive officer of Boston-based Neighborhood Assistance Corp. of America.

Marks is planning to mobilize in the next two or three months the state's 1,000 or so customers, as well as the estimated 10,000 members in various phases of the organization's 10-step housing program, to join those seeking lending law reforms."We personalize our fights," said Marks, 47, adding a successful campaign will require a cross-section of the community. "When our enemies prevent people from becoming homeowners or make predatory loans, it affects families 24 hours a day. We don't allow them to hide behind corporate veils."

The nonprofit, 14-year-old group strikes a delicate balance between advocacy and mortgage lending. It fights against discriminatory lending practices and uses some $4.3 billion committed by institutions to offer at or below market interest rates to low- and moderate-income homebuyers.

Banks make the money available as part of their efforts to comply with federal community reinvestment and fair lending laws.

The organization's offices in Columbia and Charleston are among the 26 it has in 14 states and in Washington, D.C.

Past tactics of the organization include picketing news conferences, disrupting speeches and sporting T-shirts emblazoned with a lending institution's chief executive officer's photo and the words "loan shark."

Legislation banning certain lending practices and limiting fees failed in the General Assembly this year. Advocates sought to curb abusive lending, which can include deliberate misrepresentation of a loan, extremely high interest rates and the lack of clear and complete disclosure.

Sue Berkowitz, director of the S.C. Appleseed Legal Justice Center, said the assistance of Marks' group will help the effort in the 2003 General Assembly.

"The more the merrier -- we welcome anyone who wants to join us," said Berkowitz, who said she was familiar with Marks' tactics although she doesn't know him. "I think we've been pretty confrontational ourselves with our negotiations with banks and trying to push some legislation. We've been pounding the pavement hard, screaming and yelling."

Toby Goodlett, president of the Mortgage Bankers Association of the Carolinas, said lending reform solutions have to be fair to the business community and consumers.

Goodlett said there may already be laws on the books not currently enforced that could help in combating predatory lending practices.

"I don't think there's one member of our association that thinks those crazy fees should be continued," he said. "We have to work as a team and do what's prudent for the state -- continue bringing capital to the state for help with homeownership rates."

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