The Perfect Storm Ohio and Sub Prime Lending完美风暴的俄亥俄州和次级贷款.pptVIP

The Perfect Storm: Ohio and Sub Prime Lending Charles Bromley Bromley Associates State Law and Sub Prime Lending Consumer Sales Protection Act did not cover lending Vertical integration: common ownership from sales to finance with one company Licensure of appraisers not required Role of Mortgage Brokers No fiduciary responsibility to the borrower Products that place the borrower and loan at risk, i.e., prepayment penalties yield spread premiums Targeting loan and moderate income households and communities of color Municipalities Respond 1998-Councilman Frank Jackson introduces first anti-predatory lending law 2002-City of Cleveland anti-predatory law is introduced 2002-Cities of Dayton and Toledo enact anti-predatory law State of Ohio Responds HB 386 preempts municipal ordinances that ban predatory lending 2002-Governor Robert Taft signs law 2002-Ohio Study Commission reviews predatory lending practices throughout the state 2003-Final legislative report endorses home buyer education and lacks anti-predatory lending regulations Brokers Target Suburbs 2005-Columbus Dispatch documents pattern of suburban sub prime lending Ohio’s sub prime lending record recognized as among the top five in the country Ohio’s foreclosure record is the worst in the country State considers lending law to prohibit predatory lending practices HB 185-Ohio’s Anti-Predatory Lending Law 2006-HB 185 enacted 2006-SB 117 enacted to limit damages to $5,000 on cases brought against brokers SB 117-Ohio’s Damage Limitations Governor Strickland vetoes SB 117 in 2007 Ohio Supreme Court overturns Governor’s veto Ohio Foreclosure Task Force 2007-Task Force Report completed 27 recommendations under 7 themes OHFA, Ohio Department of Commerce, and other departments responsible for implementation of recommendations Loss mitigation agreements with loan servicers proves to be difficult Pending LegislationHB 3 Foreclosure Moratori