Federal lawmakers follow N.C. model to control predatory lending.

Byline: Mary M. Shaffrey

Jun. 20--WASHINGTON -- North Carolina passed landmark legislation on predatory-lending practices in 1999. Seven years later, some believe Congress might finally be taking note.

Reps. Mel Watt, D-12th and Brad Miller, D-13th, have teamed up along with Rep. Barney Frank, D-Mass., to craft federal legislation modeled on North Carolina's existing law.

North Carolina's anti-predatory law bars pre-payment penalties and the practice of "flipping" -- when lenders repeatedly refinance loans with up front fees. It also restricts the terms of high-cost home loans.

Predatory lending practices typically target low-income borrowers, who are often minorities or military personnel on fixed incomes. There is no specific definition of what exactly predatory lending entails. However, most observers believe the practice takes place when lenders take advantage of borrowers by offering high rates and look at what the …