Multi-media Campaign and Help Line Directed at Consumers RENO, Nev., Sept. 13 /PRNewswire/ -- At a press conference here today, a coalition of private and public organizations launched a major public education campaign aimed at preventing predatory lending throughout Northern Nevada. The Northern Nevada Don't Borrow Trouble(SM) campaign is a multimedia strategy of brochures, website, radio, billboards, and TV commercials all aimed at low- and moderate-income families around the state who are vulnerable to predatory lending. By combining advertising and face-to-face consumer education and housing counseling, the campaign helps consumers avoid abusive lending practices, such as exorbitant interest rates, excessive fees and pressuring tactics. An Anti-Predatory Lending Coalition comprised of leading non-profits and housing agencies will coordinate the Don't Borrow Trouble campaign. The Reno Office of the Department of Housing and Urban Development is the lead agency for the campaign. Organizations participating in the Northern Nevada campaign are: the State of Nevada Attorney General's Office; Charles Schwab Bank; Citizens for Affordable Homes, Inc. of Carson City, Nev.; City of Reno; City of Sparks; Consumer Credit Counseling Services of Northern Nevada; Consumer Credit Affiliates; Freddie Mac; Radio Lazer; Silver State Fair Housing Council; U.S. Bank; U.S. Dept. of Housing and Urban Development, Washoe Legal Services; and Wells Fargo Bank. The radio and television advertising campaign, which launched Sept. 12, 2005, encourages consumers statewide to call the Don't Borrow Trouble help line at 775-337-6363. Callers will be able to obtain housing counseling services throughout Northern Nevada. It is hoped that people will use these resources for advice to avoid getting into financial difficulty when purchasing a home, refinancing, consolidating debt, or taking out a home equity loan. The help line is also a resource for those who find themselves currently in trouble with foreclosure. "The stability and health of Reno's neighborhoods depends on the financial viability of the families that live there," said Bob Cashell, Mayor of Reno. "The Don't Borrow Trouble campaign is a vital tool in combating predatory lending tactics that only serve to undermine the stability and financial health of families and the retirement security of seniors." Geno Martini, Mayor of Sparks, adds, "Predatory lending is a concern of mine. I worked in the banking industry for over 35 years and there are better options and opportunities available to consumers in our community." "Freddie Mac is excited about the launch of Reno's Don't Borrow Trouble campaign, and what it will mean for families throughout Northern Nevada who want to own a home and to keep owning a home," said Craig Nickerson, vice president of Expanding Markets for Freddie Mac. "Too often predatory lending practices turn the American dream of home ownership into a nightmare by stripping equity away from a family, creating a high-cost situation that eventually leads to delinquency, foreclosure and weakened neighborhoods. Don't Borrow Trouble is a proven method to help stop predatory lending and to keep families in their homes, building wealth and strengthening communities." "Predatory lending activities are affecting almost all segments of Nevada's population," said Adriana Escobar-Chanos, Chief Deputy Attorney General, State of Nevada. "One of the main goals of the Don't Borrow Trouble campaign is to educate and inform the public about these abusive lending practices and try to help those that have already been victimized. As Nevada's Consumer Advocate I applaud the efforts of this campaign and will help in any way I can to assist them in achieving success." Signs of Predatory Lending Predatory lending practices strip equity away from homeowners. A few examples are repeatedly refinancing a loan within a short period of time and charging high points and fees with each refinance; packing a loan with single premium credit insurance products like credit life insurance, and not adequately disclosing the inclusion, cost or any additional fees associated with the insurance; or charging excessive rates and fees to a borrower who qualifies for lower rates and fees. Pioneered in Boston by Mayor Thomas M. Menino and the Massachusetts Community Banking Council, Freddie Mac is the principal sponsor of the program's expansion throughout the United States. Including Northern Nevada's Don't Borrow Trouble campaign, Freddie Mac has brought the campaign to more than 36 locations, and received more than 30,000 inquiries to the campaign's help-lines. Freddie Mac is a stockholder-owned company established by Congress in 1970 to support homeownership and rental housing. Freddie Mac fulfills its mission by purchasing residential mortgages and mortgage-related securities, which it finances primarily by issuing mortgage-related securities and debt instruments in the capital markets. Over the years, Freddie Mac has made home possible for one in six homebuyers and nearly four million renters in America. http://www.freddiemac.com/ DATASOURCE: Freddie Mac; U.S. Department of Housing and Urban Development CONTACT: Thomas Vetica of the U.S. Department of Housing and Urban Development, +1-775-784-5383; or Patti Boerger of Freddie Mac, +1-703-903-2445 Web site: http://www.freddiemac.com/

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