MEMPHIS, Tenn. (AP) - An unlikely coalition of Memphis interests were behind the creation of legislation against predatory lending practices that Governor Bredesen is scheduled to sign into law today.
Senator Roy Herron sponsored the bill and gives some of the credit to attorney Frank Glankler, who raised money to save the home of a Memphis woman who faced foreclosure because of predatory lending.
In most cases, victims are poor and uneducated. When they refinance home loans they can get thousands of dollars in cash. As interest rates go up, broker's fees are added onto the loan balance and payments increase. And if they can't make the higher payments, they can lose their property.
Because his firm Glankler Brown had once represented banks, he was aware lower-income homeowners could be susceptible to predatory lenders.
Glankler and his law partner Jim Gilliland joined with the Memphis-Shelby County Anti-Predatory Lending Coalition, and groups representing banks, mortgage lenders and real estate firms.
Webb Brewer leads to coalition and says Glankler had access to people in government that his group didn't have.