Patricia McCoy, a law professor at the University of Connecticut, thinks it's likely that more cities will file lawsuits like Baltimore's and Cleveland's.
"The harm that they complain of is very real," said McCoy, who specializes in mortgage lending, banking and consumer protection.
Local banks regulated by the Community Reinvestment Act aren't joining the refrain that Baltimore's suit will chill lending. Charles Martin, an administrative vice president and reinvestment act officer for M&T Bank, said a responsible lender will "make responsible loans."
M&T said it offers below-market interest rates for low- and moderate-income borrowers and connects them with nonprofit credit counselors to make sure they understand what they're getting into. The bank hasn't seen a big uptick in foreclosures or delinquencies among those customers since the housing slump began, Martin said.
"If you can increase the amount of people who participate in the economy of the local region, you can actually increase the wealth of the region," Martin said. "But it's also just good business for the bank."
jamie.smith.hopkins@baltsun.com
Sun reporter Paul Adams contributed to this article.
