NHEMA calls for uniform federal lending standards, stating the existing patchwork of differing state anti-predatory lending laws often prevents consumers; especially those who have been less served due to no credit or poor credit, from obtaining affordable home equity loans.

Nonprime lending now amounts to about 25% of the overall mortgage market. Forty percent of these nonprime loans last year were made for home purchases, showing how vital nonprime lending is to helping people achieve the American dream of home-ownership. 

In some cases, state laws have had positive effects, but have hurt consumers in other ways, such as limiting loan affordability and access to credit for many high-risk borrowers.

Most of the so-called "tougher" state anti-predatory lending laws have caused lenders to stop offering flexible financing features that make loans more affordable for nonprime borrowers, resulting in many people not being able to obtain the loan they need. In addition, these laws have caused lenders to cease making "high-cost" loans entirely due to the increased perception of legal and reputational risks on the part of major nonprime lenders. 

NHEMA asks for uniform Federal mortgage lending standards, saying that state anti-predatory lending laws are "uneven" and often do not provide true and balanced protection for borrowers. For example, state laws do not help many borrowers because their loans are made by a federally chartered depository, which is exempt from state requirements.

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