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 theExpand
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 andExpand
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 theseExpand
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.Expand
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 toExpand
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. InExpand
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 censusExpand
Walking the Walk? Bank ESG Disclosures and Home Mortgage Lending
We show that banks with high environmental, social, and governance (ESG) ratings issue fewer mortgages in poor neighborhoods—in quantity and dollar amount—than banks with low ESG ratings. ThisExpand
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, businessExpand
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 pricingExpand
...
1
2
3
4
5
...

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 riskExpand
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 articleExpand
Foreclosing on Opportunity: State Laws and Mortgage Credit
Foreclosure laws govern the rights of borrowers and lenders when borrowers default on mortgages. Many states protect borrowers by imposing restrictions on the foreclosure process; these restrictions,Expand
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 portfolioExpand
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 mostExpand
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 industryExpand
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 articlesExpand
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.Expand
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 aboutExpand
Time Inconsistency in the Credit Card Market
This paper analyzes a unique dataset, which contains results of a large-scale experiment in the credit card market. Two puzzling phenomena are observed that suggest time inconsistency in consumerExpand
...
1
2
...