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A Framework for Consumer Protection in Home Mortgage Lending

The American Mortgage System: Crisis and Reform, University of Pennsylvania Press, 2011

Suffolk University Law School Research Paper 10-39

22 Pages Posted: 2 Sep 2010 Last revised: 24 Oct 2012

Kathleen C. Engel

Suffolk University Law School

Thomas James Fitzpatrick IV

Federal Reserve Bank of Cleveland

Date Written: August 31, 2010

Abstract

This essay attempts to catalog and describe the various dimensions to regulating home mortgages. We do not discuss specific lending practices, loan terms, or legal prohibitions, but rather the major issues that policy-makers should consider when framing a system to protect consumers who take out loans secured by their homes. While we were writing this article, Congress passed a sweeping financial reform bill, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act), which includes provisions governing mortgage loans. Reading this article alongside the bill will help people to understand the complexities that legislators wrestled with in shaping the contours of the law. Consumer protection law-making is not finished. Congress created a new Consumer Financial Protection Bureau (CFPB) and vested the agency with authority to address many of the thorny issues we identify in this paper. States are also expanding some of their consumer protection laws in an effort to avert abuses in mortgage lending. As lawmakers continue the process of reforming mortgage regulation, they will have to choose among the paths we describe.

Keywords: Mortgage, Financial Reform, Credit Regulation, Consumer Protection, Preemption, Assignee Liability

Suggested Citation

Engel, Kathleen C. and Fitzpatrick, Thomas James, A Framework for Consumer Protection in Home Mortgage Lending (August 31, 2010). The American Mortgage System: Crisis and Reform, University of Pennsylvania Press, 2011 ; Suffolk University Law School Research Paper 10-39. Available at SSRN: https://ssrn.com/abstract=1669540

Kathleen Engel (Contact Author)

Suffolk University Law School ( email )

120 Tremont Street
Boston, MA 02108-4977
United States
617-994-6831 (Phone)

HOME PAGE: http://www.law.suffolk.edu/directories/administrator.cfm?InstructorID=1111

Thomas James Fitzpatrick IV

Federal Reserve Bank of Cleveland ( email )

PO Box 6387
Cleveland, OH 44101-1387
United States

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