Defining and detecting predatory lending

@article{Morgan2007DefiningAD,
  title={Defining and detecting predatory lending},
  author={Donald P. Morgan},
  journal={Staff Reports},
  year={2007}
}
Staff Report no. 273 has been removed at the request of the author. See links to related papers. 

Figures and Tables from this paper

Predatory Mortgage Lending

Regulators express growing concern over predatory loans, which we take to mean loans that borrowers should decline. Using a model of consumer credit in which such lending is possible, we identify the

The Seven Deadly Frictions of Subprime Mortgage Credit Securitization

AbstractThe following sections are included:Frictions Between the Mortgagor and Originator: Predatory LendingFrictions Between the Originator and the Arranger: Predatory Lending and

Charlatans on the Move

Until recently little was known about the effects of predatory lending on military personnel, but a bevy of recent studies by consumer groups has confirmed the disproportionate presence of these

Restrictions on Credit: A Public Policy Analysis of Payday Lending

Using state level data between 1990 and 2006, we find no empirical evidence that payday lending leads to more bankruptcy filings, which casts doubt on the debt trap argument against payday lending.

In Harm's Way? Payday Loan Access and Military Personnel Performance

Does borrowing at 400% APR do more harm than good? The U.S. Department of Defense thinks so and successfully lobbied for a 36% APR cap on loans to servicemen. But existing evidence on how access to

Short-Term Emergency Lending: Examining Usury Law in the United States and Canada

We have chosen to discuss the regulatory framework surrounding the "payday lending" industry in North America and ultimately propose that further consumer protection and usury laws are necessary. In

Does Payday Lending Impact Neighborhood Crime Rates ?

This article provides a study of the relationship between payday lending and neighborhood crime. I examine 2008 neighborhood crime rates by census tract in Nashville, Tennessee. I find that census

Networking on the Margins:The Regulation of Payday Lending in Canada

The contemporary emergence of payday lending as a major source of high-cost short-term credit for credit-constrained populations has prompted debates among government officials, business

Interest rate caps and implicit collusion: the case of payday lending

Payday loans are very expensive forms of credit, and states that permit payday lending typically impose ceilings on loan prices. We test whether and how such constraints influence the pricing

Revised 1/2/10 Does Payday Lending Impact Neighborhood Crime Rates?

This article provides a study of the relationship between payday lending and neighborhood crime. I examine 2008 neighborhood crime rates by census tract in Nashville, Tennessee. I find that census
...

References

SHOWING 1-10 OF 20 REFERENCES

Regulation of Subprime Mortgage Products: An Analysis of North Carolina's Predatory Lending Law

This paper estimates the effect of North Carolina's high-cost mortgage law on the subprime mortgage market in that state. The results indicate that creditors sharply restricted lending to higher risk

Predatory Lending and the Military: The Law and Geography of "Payday" Loans in Military Towns

A heated national debate has developed over whether one type of high-cost predatory lender, commonly known as "payday lenders," are targeting financially vulnerable military families and whether the

The Failure of Competition in the Credit Card Market

The bank credit card market, containing 4,000 firms and lacking regulatory barriers, casually appears to be a hospitable environment for the model of perfect competition. Nevertheless, this article

Foreclosing on Opportunity: State Laws and Mortgage Credit

  • Karen Pence
  • Economics
    Review of Economics and Statistics
  • 2006
Foreclosure laws govern the rights of borrowers and lenders when borrowers default on mortgages. In states with laws favoring the borrower, the supply of mortgage credit may decrease because lenders

Consumption, Debt and Portfolio Choice: Testing the Effect of Bankruptcy Law

Consumer bankruptcy laws, which vary across states and over time, permit debtors to keep assets below a statutory exemption while debts are forgiven. High exemptions distort household portfolio

Personal Bankruptcy and Credit Supply and Demand

This paper examines how personal bankruptcy and bankruptcy exemptions affect the supply and demand for credit. While generous state-level bankruptcy exemptions are probably viewed by most

Payday Lending: Do the Costs Justify the Price?

The payday advance industry makes small, very short-term consumer loans through an extensive network of storefront shops. Customer demand for this product appears to be very strong, and the industry

Adverse Selection in the Credit Card Market

Adverse selection is one of the most celebrated phenomena in the economics of information. Yet despite a burgeoning economics and finance literature consisting of literally hundreds of articles

Do Consumers Choose the Right Credit Contracts?

A number of studies have pointed to various mistakes that consumers might make in their consumption-saving and financial decisions. We utilize a unique market experiment conducted by a large U.S.

Contract Design and Self-Control: Theory and Evidence

How do rational firms respond to consumer biases? In this paper we analyze the profit-maximizing contract design of firms if consumers have time-inconsistent preferences and are partially naive about