Calif. Court to Review Local Lending Law

The California Supreme Court has agreed to review the authority of Oakland to enact and enforce a predatory lending ordinance.The America Financial Services Association petitioned the state's high court after an appeals court upheld the Oakland ordinance. ASFA contends in its lawsuit against the City of Oakland that the state has the authority to regulate lending, not counties or cities. "In challenging the Oakland ordinance, we do not seek to defend or allow abusive lending," according to AFSA. "Our objective has been, and continues to be, a logical regulatory regime for mortgage lending. 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."