Introduction

Regulations can help markets operate more efficiently and transparently, or they can protect consumers, or they can accomplish both tasks. It is not easy, however, to strike a balance between efficiency and protection. Prescriptive regulations intended to protect consumers can add to costs and disco...

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Bibliographic Details
Published inBuilding Assets, Building Credit p. 203
Main Author ALLEGRA CALDER
Format Book Chapter
LanguageEnglish
Published Brookings Institution Press and Harvard University Joint Center for Housing Studies 25.05.2006
Subjects
Administrative law
Banking regulation
Civil law
Commercial regulation
Consumer protection regulation
Contract law
Contracts
Credit
Credit ratings
Credit reports
Debt contracts
Debtors
Economic disciplines
Economic regulation
Economics
Federal law
Financial contracts
Financial economics
Human populations
Law
Mortgage loans
Persons
Population studies
Social sciences
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Summary:Regulations can help markets operate more efficiently and transparently, or they can protect consumers, or they can accomplish both tasks. It is not easy, however, to strike a balance between efficiency and protection. Prescriptive regulations intended to protect consumers can add to costs and discourage providers from serving certain markets where violations incur stiff penalties. Many of the laws designed to protect consumers’ rights and encourage equal access to credit were passed decades ago. Recent market developments raise questions about whether current regulations are up to the task of protecting low-income consumers while providing them with an adequate flow of