The Leadership Conference on Civil and Human Rights

A new study released by the University of North Carolina's Center for Community Capital shows states that had adopted tougher anti-predatory lending laws had lower foreclosure and delinquency rates than those that did not enact such legislation.

The mortgage loans created in these states were also less risky, and average credit scores were higher, while average debt-to-income ratios and loan-to-value ratios were lower. 

Center Director Roberto G. Quercia noted that, "State laws can only provide patchy protection if different types of lenders within a state are subject to different rules.  Based on these results, we recommend that federal regulators set minimum standards – a floor, rather than a ceiling – and allow states to enact and enforce higher standards if they choose."

Full study (PDF)