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LIRA@BC Law

Abstract

Mounting foreclosures and disclosures of abusive lending practices led many states to adopt new anti-predatory lending (APL) laws. Researchers have examined the impact of such laws on credit flows and the cost of credit. This research extends the literature by examining whether the market responded to these laws by substituting different mortgage products for those restricted by APL provisions. The evidence indicates that the laws were effective in restricting loans with targeted characteristics, and that the market substituted other product types to maintain access to credit and affordability in the face of these restrictions. The laws reduced the involvement of investor and second home purchases but appeared to impact borrower credit scores or down payments.

Files

File nameDate UploadedVisibilityFile size
Mortgage_Product_Substitution_and_State_Anti_Predatory_Lending_Laws.pdf
8 Sep 2022
Public
3.07 MB

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Metadata

  • Subject
    • Business Organizations Law

    • Consumer Protection Law

  • Journal title
    • Atlantic Economic Journal

  • Pagination
    • 273

  • Date submitted

    8 September 2022

  • Additional information