Article
Predatory Lending Laws and the Cost of Credit
Real Estate Economics
Document Type
Article
Language
eng
Format of Original
37 p.
Publication Date
7-1-2008
Publisher
Wiley
Disciplines
Abstract
Various states and other local jurisdictions have enacted laws intending to reduce predatory and abusive lending in the subprime mortgage market. These laws have created substantial geographic variation in the regulation of mortgage credit. This article examines whether these laws are associated with a higher or lower cost of credit. Empirical results indicate that the laws are associated with at most a modest increase in cost. However, the impact depends on the product type. In particular, loans with fixed (adjustable) rates are associated with a modest increase (decrease) in cost.
Citation Information
Anthony Pennington-Cross and Giang Ho. "Predatory Lending Laws and the Cost of Credit" Real Estate Economics (2008) ISSN: 1080-8620 Available at: http://works.bepress.com/anthony_pennington_cross/27/
Accepted version. Real Estate Economics, Vol. 36, No. 2 (Summer 2008): 175-211. DOI. © 2008 Wiley. Used with permission.