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A New Report from Aite Group |
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Boston, MA, April 25, 2007
– New research from Aite Group, LLC, provides a snapshot of the current federal and state regulatory environment, and discusses the debate among regulators, financial institutions, and lenders about how
to provide consumers with a broad range of financial products while protecting them from the problems that those products can sometimes present.
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Source: Aite Group
The report also discusses state and federal regulatory activity with regard to payday lending and anti-predatory lending laws. Regulatory solutions toward the "Legislate"
end of the spectrum would heavily impact consumer flexibility and business practices, while solutions on the "Self-Police" end of the spectrum would tend to provide the least consumer protections but would
also have the lowest impact on the industry's viability. In reality, any regulatory solution will probably involve elements across the spectrum.
According to Eva Weber, an analyst at Aite Group and author of the report, "Consumer ire over dubious sales
practices is translating into regulatory and political attention. Lenders seeking to profit in the subprime market should expect numerous obstacles in the coming months. In many states, payday lenders will have to
deal with offering free repayment plans, entering loan information into databases, limiting rollovers of loans, and providing cooling-off periods for cyclical payday loan users. On the subprime mortgage front, some
federal legislators are pushing hard to attach liability to predatory subprime mortgage loans. At a minimum, we will likely see additional guidance on proper disclosures of loan terms and the underwriting of subprime loans."
This 16-page Impact Note contains 7 figures and tables. Clients of Aite Group's Retail Banking services can download the report by clicking on the icon to the
right.
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To purchase this report or
for additional information,
please contact:
Aite Group Sales
Tel: +1.617.338.6050
sales@aitegroup.com |
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