AG talks about predatory loans

Iowa Attorney General Tom Miller went to Washington this week to tell Congress about predatory loan practices. He’s not the only state official to find lenders are targeting low-income homebuyers with plans designed to take advantage of them. He says the terms suck equity out of the home, and they misrepresent the loans and include unfair terms. While Miller says the Federal Reserve and state attorneys general intend to fight predatory lenders, it’s also up to their fellow bankers.Miller says Iowa’s already taken some moves to halt home-loan scams that cheat buyers, but the state shouldn’t be alone.The state, Congress, Fed, and the industry should make the bad ones clean up their act, the message Miller took Thursday to the Senate Banking committee. Miller told the hearing in Washington that his office is also working with community groups to offer consumer education and programs in “financial literacy.”