The Candidates Weigh In On Predatory Lending Law

Everyone seems to be weighing in on Montgomery County's new predatory lending law, which drastically increases fines against unscrupulous lenders.

The law, which seeks to prevent discrimination in mortgage lending, has caused some lenders to suspend work in the county. A Circuit Court judge issued a temporary injunction halting its enforcement for four months. Even the Bush administration had something to say about it: John E. Bowman, chief counsel for the Treasury Department's Office of Thrift Supervision, declared that the law usurps federal authority.

Now the candidates for Montgomery County executive are having their say. As County Council members Michael Knapp (D-Upcounty) and Howard A. Denis (R-Potomac-Bethesda) introduced a bill on Tuesday that would repeal the law, Isiah Leggett, a former council member vying for the Democratic nomination, released a statement supporting the predatory lending law.

"The new anti-discrimination housing law should be given a chance to work," he wrote.

"I truly believe that a council reversal of its previous position so soon after the passage of the bill and prior to a full analysis of its impact and the protections it provides will only weaken the council as an institution and could erode its effectiveness for years to follow," Legett added.

His opponent for the Democratic nomination, Council Member Steven A. Silverman (D-At Large), voted for the predatory lending law and does not want to see it repealed, though he is willing to entertain suggestions for modifications.

"While I'm willing to listen to what lenders have to say, I don't see the need to repeal this legislation," Silverman said in an interview.

Chuck Floyd, a retired military officer and former state department employee who is seeking the Republican nomination, took the opposite view.

"This is ridiculous," he said. "They're hurting the exact people they're trying to help. It's going to hurt the real estate industry; it's going to hurt people trying to refinance; it's going to hurt homebuyers. It's going to hurt everyone in Montgomery County."

Fellow Republican candidate Robin Ficker, a lawyer and anti-tax activist, did not explicitly oppose the law but said the council should have thought more about the consequences before passing it.

"It may very well need to be legislation in this area, but they didn't think it through thoroughly," he said.