A recent study funded by the National State Attorneys General Program at Columbia Law School found that federal action to exempt national banks from state anti-predatory lending laws resulted in more defaults and riskier lending compared to other banks. At the same time, the study found anti-predatory lending laws enacted by some to protect consumers from abusive and unfair mortgage practices saved many people from losing their homes to foreclosure.
“The implications of these results are extraordinarily important,” said James Tierney, director of the National State Attorneys General Program. “This report proves that that vigorous state consumer protection laws make a positive difference for consumers throughout the country. The federal government must respect that clear fact.”