To:   HONORABLE MAYOR AND                   From:   Leslye Corsiglia

                        CITY COUNCIL

 

   Subject:   PREDATORY LENDING ACTION         Date:   November 3, 2003

                        PLAN

 

COUNCIL DISTRICT: citywide

 

RECOMENDATION

It is recommended that the City Council approve the Predatory Lending Action Plan prepared by the Housing Department.
 
BACKGROUND
 

On September 16, 2003, the City Council approved the Analysis of Impediments report, which outlined several action items related to fair housing issues.  The most significant action items included in the report related to the issue of predatory lending.  Through the approval of the report, the City committed to take the following actions in order to eliminate predatory lending practices within the San José community:

 

1)      Evaluate Other City’s Anti-Predatory Lending Guidelines – The Housing Department will complete an analysis of local measures taken to inhibit predatory lending practices.

 

2)      Anti-Predatory Lending Legislation – The City will continue to monitor and analyze legislation at the federal and State level. 

 

3)      Complete an Analysis of Relevant Data – The Housing Department will complete an analysis of Home Mortgage Disclosure Act data, and other relevant data sources, and will bring the information back to the City Council.

 

4)      Participate in Freddie Mac’s “Don’t Borrow Trouble” Program – The City will investigate the possibility of participating in this national public outreach campaign.

 

During the City Council’s discussion of the report, staff was directed to address several additional questions related to predatory lending and to provide staff support to the stakeholders group charged with identifying solutions to address the issue in San José.  It was requested that the stakeholder group return to the City Council with a report at the November 18th Council meeting.

 

ANALYSIS

 

The stakeholders group has met several times to discuss the issue of predatory lending.  The group has determined that more time is needed to complete a number of research and action items, several of which are outlined in the Analysis of Impediments report, prior to bringing a recommendation forward to the City Council.  An action plan outlining specific goals and timelines has been completed for review by the City Council at this time (attached).

 

PUBLIC OUTREACH

 

The stakeholder group began meeting in October.  To date, three stakeholder meetings were held on October 8, October 20, and November 3, 2003.  Additional meetings will be held throughout the month of November and may continue if the group determines it is necessary.

 

COORDINATION

 

None.

 

CEQA

 

Not a project.

 

 

LESLYE CORSIGLIA

Director of Housing