Usury Laws Are Dead. Long Live the New Usury Law. The CFPB’s Ability to Repay Mortgage Rule

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Usury Laws Are Dead. Long Live the New Usury Law. The CFPB’s Ability to Repay Mortgage Rule

The CFPB has come out with its long awaited qualified mortgage (QM) rulemaking under Title XIV of the Dodd-Frank Act.  The QM rulemaking is by far the most important CFPB action to date and will play a crucial role in determining the shape of the US housing finance market going forward. The QM rulemaking also represents a return in a new guise of the traditional form of consumer credit regulation—usury—and a move away from the 20th century’s very mixed experiment with disclosure.

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One Response to “Usury Laws Are Dead. Long Live the New Usury Law. The CFPB’s Ability to Repay Mortgage Rule”
  1. Sarah says:

    Wow, can Levitin blow. He’s at Georgetown and now he’s at the CFPB. You can’t be too objectionable in either role.
    This elaborate, and intentionally vague definition of a new effort doesn’t really state how consumers will be protected. Banks will be protected. They issued a qualified mortgage, but
    all their stuff during the bubble was “qualified” wasn’t it? Now we can make sure to blow another bubble. I haven’t read all of Levitin, but he just can’t quite admit, understand or acknowledge a thing or two. At the most basic level what does the interest rate have to do with an unpayable debt? More unpayable? Sometimes the more popular an academic writer is, the less credible they are, or in Levitin’s case, morally handicapped? We know Wall Street is morally bankrupt, but perhaps an editorial career requires a signifigant sacrifice of principles. As Levitin would stupidly say “that’s lefty”. Well, he’s not going to be on the street, either are his friends in the industry.

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