Cleveland's attempts to curb predatory mortgage lending through local ordinances infringes on powers reserved for the state, the Ohio Supreme Court has ruled in a decision that could discourage other cities from attempting similar measures. In a 5-2 decision this month, Ohio's highest court invalidated three Cleveland city ordinances aimed at curbing predatory lending, saying they conflict with state laws and are unconstitutional. Lenders are seeking a similar decision from the state Supreme Court in a challenge of a similar ordinance in Toledo. In the Cleveland case, the state Supreme Court held that state statutes governing residential mortgage lenders are general laws intended to establish a uniform regulatory scheme, and that cities are barred from passing their own conflicting rules...
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