• California Supreme Court Rules That Local Ordinance Imposing Expansive Prohibitions On Predatory Lending Is Preempted By State Statute Addressing Same Practices
  • February 9, 2005
  • Law Firm: Nixon Peabody LLP - Rochester Office
  • This alert concerns a January 31, 2005, decision of the California Supreme Court that will relieve sub-prime and other lenders in California from having to design programs that account for varying local mortgage lending regulations, and will provide additional support for those contending a federal or state regulatory scheme implicitly preempts varying local or state regulation. In American Financial Services Association v. City of Oakland, the Supreme Court of California ruled California's Anti-Predatory Lending Law fully occupied the field of predatory mortgage lending, and thus preempted the local ordinance of the City of Oakland regulating the same lending practices.