Agenda - 04-15-2008-3d - Laserfiche WebLink

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. Orange County, North Carolina - AIFCH - 2007 Many AFS locations offer "payday loans"; also known as check advance loans, postdated check loans, delayed deposit loans and deferred presentment loans. While they have many names, they all have the same predatory result. Typically, consumers write personal checks payable to the lender for a future date when they are due to repay the loan, usually their next payday. Like payday loans, car-title loans are marketed as small emergency loans, but they are usually made without regard to borrowers' ability to repay. A typical car-title loan has atriple-digit annual interest rate, requires repayment within one month, and is made for much less than the value of the car. These loans put vehicles-an asset essential to the well-being of working families -at high risk Additionally'S, borrowers frequently cannot pay the full amount due on the maturity date. They find themselves extending or "rolling over" the loan repeatedly, becoming trapped in a cycle of debt, paying fees well in excess of the amount they originally borrowed. The cost for these "convenience" loans can be extremely high. In some states, a company can charge a maximum of $15 on a $10 loan for atwo-week period, which calculates to a 390% annual percentage rate (APR). Often, borrowing $500 results in $75 in fees and interest. 6.3 Orange County Lending This report concentrates on mortgage lenders in Orange County based on 2004 Loan Application Register (LAR) reports from individual lenders. The statistical data base used for the analysis contained in this report is from the FFIEC (Federal Financial Institutions Examination Council) data. Due to changes in HMDA reporting and the availability of useful data, the information in this section is provided in three geographies: (1) Orange County MSA, (2) Orange County, and (4) Census Tract. Information is provided based on the race and income of applicants, and other important parameters. This analysis should be used as a tool to determine only the lending performance of lenders in the specific area, and not to determine or identify discriminatory practices by individual lenders. The HMDA database does not include comparisons of loan terms and conditions, patterns of branch openings and closings, and records of community development investing. However, this analysis does consider race, and racial population, applicant income, and income of census tracts. Unregulated lenders who are not required to submit HMDA reports are not monitored and have not been included in this analysis. 6.4 Analysis The focus of this report is on all applications (all types and purpose) and on Conventional Home Purchase applications, originations and denials. As noted above, the Federal Financial Institutions Examination Council's (FFIEC) HMDA data is based on MSA, County and Tracts. 14