Preliminary Study: State Anti Predatory Mortgage Loan Laws MAY Have Reduced Later Loan Problems.

Preliminary study from North Carolina Center for Community Capital is HERE.

From Executive Summary:

Overall, we observe a lower default rate for neighborhoods in APL
states, in states requiring verification of borrowers’ repayment ability, in states with broader coverage of subprime loans with high points and fees, and in states with more restrictive regulation on prepayment penalties. We believe that these findings are remarkable, since they suggest an important and yet unexplored link between [Anti Predatory Lending Laws] APLs and foreclosures. Moreover, given the wide range of factors influencing foreclosures, including house price declines, rising unemployment, and differences in state foreclosure processes, these descriptive statistics are likely to result in an underestimation of the positive impacts of APLs.

Report cautions these are PRELIMINARY results that need to be validated with a planned second phase of this study.

Originally created and posted on the Oregon Housing Blog.