AFSA Lauds Ruling on Toledo Ordinance

The American Financial Services Association is applauding a July 21 Ohio court decision to strike down the city of Toledo's mortgage lending ordinance on the grounds that it conflicts with state law."Our objective has been, and continues to be, a logical regulatory regime for mortgage lending," the AFSA said. "Such a regulatory structure cannot be built upon a patchwork of local and municipal ordinances, each of which reflects its own perception of abusive lending." According to Laurence Platt, a partner with the Washington law firm Kirkpatrick & Lockhart, a number of municipalities have tried to exercise more authority than they have under state law. "Toledo is a perfect example of that," Mr. Platt said. "The decision of the [Common Pleas Court of Lucas County, Ohio] said Toledo doesn't have the authority to regulate credit in that way." The Toledo ruling comes on the heels of an appellate court decision in City of Dayton v. State of Ohio barring Dayton's ordinance for essentially the same reason, according to the AFSA.