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Mortgage Product Substitution and State Anti-Predatory Lending Laws: Better Loans and Better Borrowers?
University of Pennsylvania Institute for Law and Economics
  • Raphael W Bostic, University of Southern California
  • Souphala Chomsisengphet
  • Kathleen C Engel, Suffolk University Law School
  • Patricia A McCoy, University of Connecticut - School of Law
  • Anthony Pennington-Cross, Marquette University
  • Susan M Wachter, University of Pennsylvania
Document Type
Article
Language
eng
Format of Original
51 p.
Publication Date
1-1-2008
Publisher
University of Pennsylvania Institute for Law and Economics
Abstract
Mounting foreclosures and recent disclosures of abusive lending practices have led many states to adopt new anti-predatory lending laws. Researchers have examined the impact of such laws on credit flows and the cost of credit. This research extends the literature by examining if the market responded to these laws by substituting different mortgage products for those restricted by antipredatory lending provisions. The evidence indicates that the new laws were effective in restricting loans with targeted characteristics and that the market substituted other product types to maintain affordability in the face of these restrictions.
Comments

University of Pennsylvania Institute for Law and Economics, Research Paper No. 09-27, (2008). Permalink.

Citation Information
Raphael W Bostic, Souphala Chomsisengphet, Kathleen C Engel, Patricia A McCoy, et al.. "Mortgage Product Substitution and State Anti-Predatory Lending Laws: Better Loans and Better Borrowers?" University of Pennsylvania Institute for Law and Economics (2008)
Available at: http://works.bepress.com/anthony_pennington_cross/11/