Document Type
Book Chapter
Comments
This encyclopedia entry predates the author's affiliation with Cornell Law School. It appeared in published form in: Susan J. Smith, editor-in-chief, International Encyclopedia of Housing and Home, Amsterdam : Elsevier, 2012.
Abstract
The bust of the subprime market in the mid-2000s led to the global financial crisis of the late 2000s. This crisis has virtually ended subprime lending for the current credit cycle. Most subprime lenders have gone out of business or merged with other financial institutions. The remaining financial institutions have tightened their underwriting so that they no longer lend to those with subprime credit profiles. It is likely, however, that subprime lending will return in some form once the credit cycle turns. Other than the recent amendments to Regulation Z, the regulation of subprime and predatory lending has not changed in any meaningful way since the peak of the subprime boom. For the cycle of abusive lending to be ameliorated once credit standards inevitably loosen, the federal government will need to further expand consumer protection regulation or allow the states to do so.
Date of Authorship for this Version
2012
Keywords
Predatory home lending, Subprime mortgage market, Subprime lending
Recommended Citation
Reiss, David J., "Regulation of Subprime and Predatory Lending" (2012). Cornell Law Faculty Working Papers. 161.
https://scholarship.law.cornell.edu/clsops_papers/161