Fitch Ratings Addresses Predatory Lending Legislation of Cleveland, OH.Business Editors NEW YORK--(BUSINESS WIRE)--Feb. 2, 2004 On April 23, 2002, the City of Cleveland, Ohio "Cleveland" redirects here. For the Cleveland metropolitan area, see . For other uses, see Cleveland (disambiguation). Cleveland is a city in the U.S. state of Ohio and the county seat of Cuyahoga County, the most populous county in the state. passed Ordinance 737-02, (the Ordinance), effective April 25, 2002, to prohibit predatory lending practices in the City of Cleveland. As a result of several legal challenges, the effectiveness of the Ordinance had been stayed. The City of Cleveland then appealed and asked the appellate court A court having jurisdiction to review decisions of a trial-level or other lower court. An unsuccessful party in a lawsuit must file an appeal with an appellate court in order to have the decision reviewed. to stay the effectiveness of the lower court ruling. While the Ordinance was subject to the court's stay, Cleveland passed revised Ordinance 45-03, which amended certain provisions of Ordinance 737-02, effective Jan. 15, 2003. The Ohio Court of Appeals panel hearing the appeal in American Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. Association v. City of Cleveland recently granted the request of the City of Cleveland without opinion. Thus, on January 12, 2004, the date of the appellate court's ruling, the lower court's stay of Ordinance 737-02 was invalidated. Pending further developments in the case, the Cleveland ordinance is now in effect; although it is uncertain from the motions and orders filed in the case, whether the law in effect after the appellate court's ruling is only Ordinance 737-02 or whether the amendments contained in Ordinance 45-03 are also effective. Fitch has previously indicated that it will not rate residential mortgage-backed securities Residential mortgage-backed securities (RMBS) are a type of bond commonly issued in American security markets. They are a type of Mortgage-backed security which are backed by mortgages on residential rather than commercial real estate. (RMBS RMBS Residential Mortgage-Backed Securities RMBS Rambus, Inc. (NASDAQ stock symbol) RMBS Russian Mortgage-Backed Securities ) transactions that contain loans which are originated in jurisdictions that have enacted legislation that may result in unlimited purchaser or assignee assignee (assign) n. a person to whom property is transferred by sale or gift, particularly real property. (See: assign) ASSIGNEE. One to whom an assignment has been made. 2. liability for predatory lending practices of an originator, broker or servicer (see press release dated May 1, 2003, 'Fitch Revises its Rating Criteria in the Wake of Predatory Lending Legislation', available on the Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. web site at 'www.fitchratings.com'). Assuming that any Ordinance is effective or that all of the Ordinances are effective, they prohibit the City of Cleveland from entering into a contract for goods or services with a financial institution which is deemed a predatory lender as defined by the Ordinances and violations of the Ordinances are classified as misdemeanors, unless an assignee is found to knowingly assist a predatory lender, such penalties cannot be assessed against an assignee. Therefore, Fitch will continue to rate RMBS that include mortgage loans originated in the City of Cleveland. |
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