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Oh, no…

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Illinois

From a press release issued at 6:27 Friday evening.

Governor Rod R. Blagojevich today directed the Illinois Department of Financial and Professional Regulations (IDFPR) to immediately suspend the Illinois Predatory Lending Database Pilot Program, also known as HB 4050.

That would be Speaker Madigan’s pet program. The program that Madigan twisted every arm at the Statehouse to pass, and then kept at it even after the bill became law.

From Madigan’s spokesman, Steve Brown:

T: Interested Parties
F: Steve Brown
R: “welcome back predator’s campaign'’

To paraphrase a recent advertising campaign “what was he thinking.”

Our comment tonight is:

The governor has made a very regrettable mistake.

It is not surprising that he waited until after dark to erect the “Welcome Back” sign for the predators.

Well, this should be fun.

Comments

More bending of the law by Blagojevich. I hope that Madigan does eat him alive. At this point, he just deserves whatever comes his way.

Comment by Squideshi Monday, Jan 22, 07 @ 7:54 am
This is more “I’m a fighter” mindset on Blago’s part and it is all aimed at getting more money into his pockets from the private sector. “Joe Lunchbox”, as one of his directors refers to Mr. Six Pack”, is not paying attention. The lobbyists and consultants are seizing the moment buying their way in. It reminds me of the gambling scenes from the Deerhunter. Money and yelling at the 2 guys at the center of attention. Bang! One of the guys gets dunped in the alley. Only the players inside know and they don’t care.

middle. all around, taking care of themand politicos are watching.

Comment by Diego Monday, Jan 22, 07 @ 7:55 am
I don’t know…it does seem rather paternalistic.
And if these communities are primarily minority communities, as I believe they are, are we saying
minority communities need “special” protection from making mistakes. We are all potential targets of unscrupulous real estate brokers and lenders. Why do these folks need more protection than others. Why not more laws to control the
brokers and lenders.

I think this is more interesting from the political standpoint. Is Blago trying to curry favor with potential future kingmaker Obama, noted for not being a Madigan pal. Or is this a proxy fight with Lisa for the 2010 governor’s race. Or a President Obama might have a nice do-nothing federal job for Blago, no pesky state budget problems, thus clearing the way for Alexi to run for guv. Fixing Bright Start must be pretty boring.

Comment by Cassandra Monday, Jan 22, 07 @ 8:31 am
Forget the R vs D, this is going to get real good real quick.

Comment by He Makes Ryan look like a saint Monday, Jan 22, 07 @ 9:29 am
When my mom sold her house, it went to a family with poor credit. To fix their credit, the mortgage brokers had my mom’s house reappraised; 50% over market value. By doing this the mortgage brokers got their sale, but what did this family get? An old house in a declining market with an ungodly mortgage. This family will be upside down on this house for decades. Similar situations in the neighborhood has created abandoned homes as families give up and disappear, driving my mom’s old house further downhill.

This is wrong. We have real housing organizations out there to help families buy homes. We don’t need businesses out there preying on these people. Blagojevich is wrong to stop this. It doesn’t matter where it is happening. Illinois should not allow these types of lending practices.

I am not one to endorse regulations, and I believe people should be allowed to make mistakes. On the other hand, real estate is the largest, most important purchase families make. Homes are important to families. If anyone should ensure that families are protected from vultures when purchasing homes, it should be a Democrat. The idea that Blagojevich is suspending this program because he sees flaws in it, is ridiculous. You go with what you have and then fix it. You just don’t let the vampires loose.

Comment by VanillaMan Monday, Jan 22, 07 @ 9:47 am
This law was discriminatory against African Americans and Latinos. Blagojevich’s move to suspend it shows that he genuinely has the best interests of those who this law was supposed to protect in mind. He will direct his administration to come up with an alternative that truly protects consumers, particularly those most vulnerable to predators.

What surprises me is that nobody has talked about how this law creates more bureaucratic hurdles for Latinos and African Americans from buying homes. It should also be noted that Speaker Madigans legislative district is becoming more and more Hispanic. Could he have made the pilot program of this law solely in his district to stem the growth of the Latino community in his district? Are there any private sector people in the business who are close to Madigan benefitting from this law?

Its worth investigating, reporters.

Comment by Number 8 Monday, Jan 22, 07 @ 10:19 am
This whole thing stinks like yesterdays diapers. The real problem begins with gov. officials who have no idea how the finance industry works making laws to govern it. Yes there is a problem but there has to be a much better way to solve it. I am not a big fan of our Gov. but I think he made a good decision squashing this riddiculous law.

Comment by fed up in Illinois Monday, Jan 22, 07 @ 12:06 pm
The Governorâ€™s Friday Night News,
Has the Speaker singing the blues.
Mike had better beware,
With regard to footware,
For Rod just pissed on his shoes.

Comment by Limerick Monday, Jan 22, 07 @ 12:41 pm
Mike - Who’s Your Daddy?

Comment by Willie Stark Monday, Jan 22, 07 @ 5:09 pm