Product Liability and Mass Torts

Predatory Lending and Unfair Practices

Predatory Lending and Unfair Practices

Triggered by the collapse of housing prices and a surge in defaults and delinquencies, a spate of recent cases include an array of allegations concerning potential predatory lending behavior. Complaints allege that the loan-generating process itself was fraudulent or that certain types of loans or loan characteristics were unsuitable for the borrower. Other suits allege discriminatory practices, claiming disparate treatment of groups based on race or other demographic characteristics.
 
In addressing these types of allegations, which involve claims for either injunctive relief or monetary damages, NERA experts perform rigorous statistical investigations of alleged practices. We use econometric analysis to understand the causes of differences in loan prices and terms, including the credit history, education, and income of the borrower, as well as the borrower’s preference for risk (or discount rate). Our experts also consider the competitiveness of the market in which the loan was arranged and other macroeconomic factors. Statistical analysis is essential to distinguish behavior that is predatory from that which is explainable by other factors and so does not provide evidence of fraud or discrimination.

NERA experts have extensive experience presenting the results of complex statistical analyses in a manner that can be easily understood by clients, judges, and juries.

Name Title Location Phone Email
Lucy P. Allen Senior Managing Director New York City +1 212 345 5913 lucy.allen@nera.com
Dr. Denise Neumann Martin Senior Managing Director Miami +1 305 808 7880 denise.martin@nera.com
Dr. Faten Sabry Senior Managing Director
Chair of NERA's Global Securities and Finance Practice
Bankruptcy Practice Chair
New York City
London
+1 212 345 3285
+44 20 7659 8618
faten.sabry@nera.com
Dr. Stephanie Plancich Managing Director New York City +1 212 345 7719 stephanie.plancich@nera.com
Janeen McIntosh Senior Consultant New York City +1 212 345 1375 janeen.mcintosh@nera.com
Mark L. Berenblut Affiliated Consultant Toronto
New York City
London
+1 416 868 7311
+1 917 475 0020
+44 20 3769 1096
mark.berenblut.affiliate@nera.com
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