State Anti-Predatory Lending Update & Predictions for State Action


This presentation was made at the BuckleySandler "Fair Lending Today" conference in Washington DC on April 23, 2009. Ms. Negroni addresses these questions: "If there are so many federal and state anti-predatory lending laws and consumer protection laws, why does predatory lending continue? Why aren't 10-20 years' worth of laws more effective in preventing abuses and reducing the incidence of foreclosures facing subprime borrowers? Why are non-white subprime borrowers so much more impacted by the mortgage crisis than their white counterparts when statistics show that the majority of subprime loans are made to white borrowers?

The presentation addresses steps state regulators have taken, and failed to take, to address subprime lending and the limitations of many anti-predatory lending laws. In particular, Ms. Negroni faults state regulators for piling on mandatory disclosures, which are frequently overlooked by borrowers, and for failing to use available data to predict default and foreclosure rates for minority borrowers. She predicted the tidal wave of private litigation that has occurred since the start of the housing and financial crisis, much of which may have been avoided had the state regulators used information available to them to take more meaningful steps to prevent predatory lending. The shorthand "PL" refers to predatory lending, "APL" refers to anti-predatory lending laws, and "SP" refers to subprime loans in this 9-page speech with legal citations.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© BuckleySandler LLP | Attorney Advertising

Written by:


BuckleySandler LLP on:

JD Supra Readers' Choice 2016 Awards
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.