Since North Carolina became the first state five years ago to enact a comprehensive law against predatory mortgage lending, such practices have declined dramatically in the state and subprime lending continues to thrive, according to the Center for Responsible Lending in Durham, N.C.The market grew by an estimated 40% this year, the center said. During the first year alone, citizens of North Carolina saved an estimated $100 million as a result of the law, the nonprofit organization reported. "Abusive home lending practices, particularly among subprime mortgage refinances, cost U.S. consumers an estimated $9.1 billion every year," the center said. In order for legislation to be effective, according to the center, it must limit abusive prepayment penalties that trap borrowers in high-cost loans and kickbacks to brokers that encourage steering and the financing of excessive fees. Predatory lending laws must prevent "flipping" and ensure that homeowners have a right to pursue meaningful remedies and defend their homes against foreclosure even after their loans have been sold, the center said.
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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.
July 11 -
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.
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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.
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The notes are backed by home improvement installment loans originated by approved dealers in Foundation Finance Company's network.
July 11