Abstract

http://ssrn.com/abstract=761106
 
 

References (23)



 
 

Citations (21)



 


 



The Impact of Local Predatory Lending Laws


Giang Ho


affiliation not provided to SSRN

Anthony Pennington-Cross


Marquette University - Dept. of Finance

June 2005

FRB of St. Louis Working Paper No. 2005-049A

Abstract:     
Local authorities in North Carolina, and subsequently in at least 23 other states, have enacted laws intending to reduce predatory and abusive lending. While there is substantial variation in the laws, they typically extend the coverage of the Federal Home Ownership and Equity Protection Act (HOEPA) by including home purchase and open-end mortgage credit, by lowering annual percentage rate (APR) and fees and points triggers, and by prohibiting or restricting the use of balloon payments and prepayment penalties. Empirical results show that the typical local predatory lending law tends to reduce applications and rejections, while having little impact on the flow of credit and only a modest impact on interest rates. However, the strength of the law, measured by the extent of market coverage and prohibitions, can have strong impacts on both the flow and cost of credit.

Number of Pages in PDF File: 89

Keywords: Mortgages, Predatory, Laws, Subprime

JEL Classification: G21, C25

working papers series


Download This Paper

Date posted: July 28, 2005  

Suggested Citation

Ho, Giang and Pennington-Cross, Anthony, The Impact of Local Predatory Lending Laws (June 2005). FRB of St. Louis Working Paper No. 2005-049A. Available at SSRN: http://ssrn.com/abstract=761106 or http://dx.doi.org/10.2139/ssrn.761106

Contact Information

Giang Ho (Contact Author)
affiliation not provided to SSRN
No Address Available
Anthony N. Pennington-Cross
Marquette University - Dept. of Finance ( email )
P.O. Box 1881
Milwaukee, WI 53201-1881
United States
Feedback to SSRN


Paper statistics
Abstract Views: 1,499
Downloads: 173
Download Rank: 99,579
References:  23
Citations:  21

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo3 in 0.469 seconds