Paper Finds Evidence of Mortgage Originators Steering Borrowers to Subprime Loans in 2000s

Sumit Agarwal of the National University of Singapore and Douglas D. Evanoff of the Chicago Fed have written Loan Product Steering in Mortgage Market.  Here's the abstract: Accusations of unscrupulous lender behavior — e.g., predatory lending — abounded during the housing boom of the 2000s. Such behavior is said to have generated significant social costs […]

NYT report: Emails document JPMorgan Chase coverup of bad loans

See here for this new report on banking shenanigans. Here's the gist: When an outside analysis uncovered serious flaws with thousands of home loans, JPMorgan Chase executives found an easy fix. Rather than disclosing the full extent of problems like fraudulent home appraisals and overextended borrowers, the bank adjusted the critical reviews, according to documents […]

FTC: It’s Illegal to Collect A Debt by Threatening That the Debtors Will Lose Their Kids if They Don’t Pay Up

by Brian Wolfman It's nice to see the FTC shutting down unscrupulous, outrageous debt collectors. In this complaint filed last month, the FTC charged a debt collection company called Goldman Schwartz and related defendants with a variety of violations of the Fair Debt Collection Practices Act and the Federal Trade Commission Act. As explained in […]

Full Court Rebuffs Recess-Appointments Challenge

On Monday, we told you about one company's efforts to bring its challenge to President Obama's recess appointments before the U.S. Supreme Court. The challenge came in the form of an emergency stay application directed to Justice Ginsburg, which she wasted no time in denying. The challenger — a company, known as HealthBridge Management, that […]

Should Used Car Sellers Have to Fix Recalled Cars Before They Are Resold? Should Rental Car Companies Have to Fix Recalled Cars Before They Rent Them to Consumers?

by Brian Wolfman California legislators are considering requiring used car sellers to fix cars subject to government safety recalls before they re-sell those cars to unsuspecting customers. The idea is that consumers should not be buying used cars that the government says have bad brakes or faulty, fire-prone wiring. Legislation on the topic could affect […]

Fordham Law Conference to Include Consumer Law Panel

The conference is titled ""What is Urban Law Today?  A Symposium on the Field’s Past, Present, and Future in Honor of the Urban Law Journal’s 40th Anniversary.  It will be be held on February 28, 2013 at Fordham’s Lincoln Center Campus.  The consumer law panel, on consumer protection by local governments, is scheduled for 2:10pm-3:00pm. Speakers […]

More on the Republicans and the CFPB

So much is being written about Republican opposition to confirmation of the CFPB's director, Richard Cordray, that it's hard to keep up with it all.  But a couple of recent pieces pull a lot together and are worth a look. One is Nobel Laureate and Times columnist Paul Krugman's op-ed yesterday, Friends of Fraud, about […]

Senate bill would bar “pay-for-delay” deals between brand-name and generic drug companies

We have blogged several times (here, here, here, here, and here) about the Federal Trade Commission's challenges to "pay-to-delay" settlements between brand-name and generic drug companies, in which the brand-name company pays the generic to delay selling a generic equivalent of the brand-name drug. The Legal Times reports that the new chair of the Senate's […]