The Snake Keeper Blog

In addition, in 1994, section 32 of the Truth was created in the Home Ownership and Equity Protection Act of 1994. This law is devoted to identifying certain expensive, potentially predatory mortgages and limiting their terms. Twenty-five states have passed laws against predatory loans. Arkansas, Georgia, Illinois, Maine, Massachusetts, North Carolina, New York, New Jersey, New Mexico and South Carolina are among the states considered the strongest laws. Other states with predatory credit laws are: California, Colorado, Connecticut, Florida, Kentucky, Maine, Maryland, Nevada, Ohio, Oklahoma, Oregon, Pennsylvania, Texas, Utah, Wisconsin, and West Virginia. These laws generally describe one or more categories of “expensive” or “covered” credit, defined by the fees charged to the borrower when granting credit or the annual effective annual rate. While lenders are not prohibited from granting “expensive” or “covered” credit, a number of additional restrictions are placed on these loans and penalties for non-compliance can be significant. . . .