Compliance experts have long disagreed about how much, if any, discretion loan officers have in pricing loans to consumers. But a recent auto lending case should bring that debate to a close. In a recent settlement in the auto lending arena, Toyota Motor Credit Corp., as part of its consent order, agreed to limit the pricing discretion given to dealerships to 1.25% above the buy rate for loans up to five years in duration and 1% for all other loans. Although this action pertains to the auto lending industry, there is little reason to believe the rationale for discretion should apply any differently to mortgage lending
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Ari Karen is an experienced litigator and speaker who has focused his practice in representing financial institutions in both government investigations and litigation before state and federal trial and appellate courts nationwide. Mr. Karen’s practice is diverse, representing clients on matters concerning banking regulations, Dodd Frank financial reform laws, contractual disputes, employment and labor statutes, wage-hour class actions, employment discrimination and fair lending matters, whistleblower complaints and non-competition claims, among others.
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