by Patrick Lunsford, CollectionIndustry.com


The banking and lending industry waits with bated breath on a report from the Federal Reserve on lender loan data. Why all the shallow breathing? Last year?s report led to investigations of 200 lenders whose records showed possible discrimination against minority borrowers, writes the Associated Press.


This year, many experts expect 2005 loan data to reveal a 20% increase in subprime loans. This has many bank officials worried about investigations and allegations of unequal lending practices.


The Fed already has said the anticipated jump in subprime loans can partially be explained by the “yield curve? ? the relationship between short-term and long-term interest rates. But many consumer groups have already jumped on bandwagons holding bags of feathers and buckets of tar with banks? names on them.


Both the Association of Community Organizations for Reform Now and the Center for Responsible Lending have recently issued reports highlighting lending disparity in advance of the Fed?s official loan data report.


The Fed is scheduled to release the report next month.


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