Here. The whole piece is worth reading, but here's an excerpt: Donald Trump’s Presidential campaign was filled with a lot of bold talk about “draining the swamp” and fighting against lobbyists. He attacked Hillary Clinton for her supposed cozy relationship with banks, and talked about how he’d stand up to Wall Street on behalf of the […]
Category Archives: Predatory Lending
Just in time for the Supreme Court's oral argument on Tuesday in Wells Fargo v. Miami, Suffolk's Kathleen Engel, an important thinker on consumer law, has written Local Governments and Risky Home Loans, 69 Southern Methodist University Law Review 609. Here is the abstract: Municipalities from the Central Valley in California to Upstate New York bear the […]
by Jeff Sovern So says a study from the Glassgow Centre for Population Health, Public Health Implications of Payday Lending. The study's "key messages:" • Payday lending is a contemporary public health concern: the vulnerability of the populations involved, the urgency, scale and growth of the issue coupled with the corrosive nature of personal debt and financial […]
Here. Here's the beginning of the Executive Summary: Lenders normally want borrowers who will pay back their loans in full. This seems obvious—otherwise, won’t the lender lose money? Yet in the high-rate installment loan market, the normal incentive to make affordable loans does not work. When loans have high interest rates, lenders may seek out […]
Daria Roithmayr of USC, Justin Chin, a USC law student, and Bruce Levin, an Emory biology professor, have written Cat and Mouse: A Dynamic Analysis of Predatory Payday Lending. Here's the abstract: Legal actors and the regulators who pursue them often engage in a co-evolutionary game of cat and mouse, as each innovates to out-compete […]
Here. He also said that the final arbitration and payday lending rules will come out in the next year or so.
SCOTUSBLOG coverage here and here. Reuters reports here. The Reuters lead reads: "The U.S. Supreme Court on Tuesday agreed to decide whether Miami can pursue lawsuits accusing major banks of predatory mortgage lending to black and Hispanic home buyers resulting in loan defaults that drove down city tax revenues and property values." HousingWire has more […]
by Jeff Sovern Hensarling calls the bill the Financial Choice Act. Make America Great for Banks Act is closer to the truth. Based on a quick look, the bill would give bank lobbyists power over the CFPB by subjecting it to the appropriations process, increase the likelihood of deadlocks by turning the Bureau into a commission, […]
by Jeff Sovern Yesterday the House Appropriations Committee reported out a bill that would convert the Bureau to a commission, subject it to the congressional appropriations process, and delay (perhaps forever) the adoption of the arbitration and payday lending rules. More information on the Committee's web site.