Allowing National Banks to Ignore State Lending Laws Encouraged Risky Lending
A report by the Center for Community Capital at the University of North Carolina provides evidence that allowing national banks to ignore state lending laws encouraged these banks to increase subprime lending, and that states with stronger lending laws have had lower foreclosure rates. [1] The study analyzes lending patterns and loan performance before and after 2004, the year the U.S. Office of Comptroller of the Currency exempted national banks from state anti-predatory lending laws through "preemption." A brief summary of the research: States with strong anti-predatory lending laws fared...