New York City's anti-predatory-lending law was invalidated in a decision issued Monday by a Manhattan Supreme Court judge.Justice Michael D. Stallman, who permanently enjoined enforcement of Local Law 36, said the law is regulatory and therefore pre-empted by state and federal laws governing the banking industry. The plaintiffs argued that state banking law amply protects borrowers, because it imposes severe penalties for predatory lending practices -- the very conduct also targeted by Local Law 36 -- and in addition gives borrowers substantial legal rights and defenses in the face of unlawful high-cost home loans. Thomas L. McMahon, general counsel for the New York City Council, said the law "was not enacted as a regulatory measure, but as an exercise of the city's fundamental right to decide whom we do business with." The council is reviewing the decision, and over the next few days it will decide whether to appeal.
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Ohio-based Liberty Home Mortgage joins several companies who started using a more modernized FICO credit score for nonconforming mortgage originations recently.
3h ago -
The CFPB has dissolved the Office of Supervision, Enforcement and Fair Lending and eliminated the job of associate director in a move that impacts how it designates nonbanks for supervision.
4h ago -
The plan that the Federal Housing Finance Agency floated calls for Freddie Mac to actively invest in some new closed-end seconds as cash-out refinancing subsides.
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The push comes amid what one expert highlighted as lax funding efforts for two Department of Housing and Urban Development grant programs.
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Conventional lending drove volumes higher, particularly in the purchase market, the Mortgage Bankers Association said.
April 17 -
Net charge-offs at the Charlotte, North Carolina-based bank increased by more than 80% in the first quarter compared with a year earlier. BofA executives say that the rising losses were in line with the bank's risk appetite.
April 16