The patchwork of state anti-predatory-lending laws often prevents consumers, especially those traditionally underserved by financial institutions, from obtaining affordable home equity loans, according to the Washington counsel for the National Home Equity Mortgage Association.In written testimony submitted to a Federal Reserve Board hearing in Chicago on the home equity market, Wright H. Andrews said policymakers "must take great care to ensure that legislative and regulatory changes do not result in unnecessary or unintended adverse impacts on this critically important nonprime segment of the mortgage market." Mr. Andrews said some state laws have had positive effects but have hurt consumers in other ways, such as "limiting loan affordability and access to credit for many high-risk borrowers." He argued that most of the "tougher" state predatory-lending laws have caused lenders to stop offering flexible financing that makes loans more affordable. They have also caused lenders to stop making "high-cost" loans due to the "increased perception of legal and reputational risks" on the part of major nonprime lenders, he said. Mr. Andrews also called for uniform federal mortgage lending standards, arguing that they would "greatly reduce compliance costs, allowing lenders to pass on savings to borrowers by offering lower rates." NHEMA can be found at http://www.nhema.org.
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A federal judge in Texas dismissed the Consumer Financial Protection Bureau's medical debt rule and prohibited states from passing their own laws prohibiting medical debt on credit reports.
8h ago -
Dr. Mark Calabria takes on the additional role of chief statistician of the United States; retired Ally Bank executive Diane Morais has joined First Citizens Bancshares' board of directors; MainStreet Bank has promoted Alex Vari to chief financial officer; and more in this week's banking news roundup.
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While refinances are behind the latest increases, the pace of purchase activity may be a stronger indicator of where the housing market sits.
July 11 -
The share of economists expecting a September rate reduction grew in the July Wolters Kluwer survey, but the October or later percentage also increased.
July 11 -
Rising home prices and softening sales offer a mixed view of a market that some say is shifting to favor buyers.
July 11 -
The notes are backed by home improvement installment loans originated by approved dealers in Foundation Finance Company's network.
July 11