WASHINGTON, DC - Mayor Anthony A. Williams and Superintendent S. Kathryn Allen, DC Office of Banking and Financial Institutions (OBFI) are deeply concerned regarding the eviction of Ms. Ivory and are sympathetic of the plight she faces along with other homeowners who have become victims of predatory lenders. It is a case such as this that prompted Mayor Williams to introduce, and subsequently sign into law, the Protections from Predatory Lending and Mortgage Foreclosure Improvement Act of 2000.

"Predatory lending is a destructive practice - one that destroys lives and destabilizes neighborhoods", said Allen. The mission of OBFI is to protect District residents and businesses, as well as to facilitate economic development and access to capital and credit. "Since my appointment in August 1999, I have worked to transform OBFI from a regulatory agency which lacked adequate staff and funding, into a full-service financial regulatory agency."

One of the goals to achieve that mission is strengthening the enforcement of the laws administered by OBFI. To that end, OBFI is improving the licensing, supervision, and examination of all the financial institutions it regulates. As it relates to the Mortgage Lenders and Brokers Act of 1996, OBFI has allocated the appropriate resources to protect District residents. For example, OBFI began reviewing the Act in December 2000 to develop a process to conduct examinations of mortgage lenders and brokers. Additionally, OBFI drafted amendments to the Act that increased its examination authority. These amendments are included in the FY 2002 Budget Support Act currently under consideration by the Council of the District of Columbia. OBFI will further strengthen the Act by drafting comprehensive administrative and enforcement procedures.

In addition to establishing more stringent policies and procedures, OBFI has established an examination unit to ensure compliance with the Mortgage Lender and Broker Act. Specifically, the unit has been charged with restructuring the examination process, reevaluating the entire application, Annual Report and license renewal processes. The unit will require all licensees to certify that they have not engaged in prohibited activities, and to disclose legal actions against them. OBFI will also be working with other jurisdictions to share information regarding mortgage lenders and brokers that can be used in OBFI's investigation of lenders and brokers in connection with license applications and renewal of licenses. Community based workshops have been designed and held by OBFI to ensure that District residents understand the dangers of predatory lending and other abusive practices. Workshops have been conducted in throughout the District's eight wards.