Industry News

Ohio attorney general goes after abusive lending

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Ohio Attorney General Jim Petro has proposed new rules to crack down on predatory lending in the state -- a practice where lenders use dicey sales tactics to target certain borrowers with expensive loans. The state official on Friday proposed new administrative rules defining unconscionable mortgage lending practices in Ohio, such as home loans that the customer cannot afford to pay, loans that do not provide a tangible net benefit to the borrower, and other predatory lending practices. Ohio's new Homebuyer's Protection Act, passed with bipartisan support earlier this year, will take effect on Jan. 1, 2007. The law provides the attorney general with the authority to further define and prohibit unconscionable practices in mortgage lending. "We are cracking down on predatory lending practices that have gone unregulated for years," Petro said in a statement. The rules are aimed at reducing and penalizing abusive lending practices committed by loan officers, mortgage brokers and non-bank...