Apparently Decision One closed its Ohio offices today. I heard that most non-FDIC insured subprime lenders were expected to leave the state, because of liability issues.

The Cincinnati Post: “COLUMBUS - Ohio again leads the nation in home foreclosures, an indicator of how the state’s lag in adding jobs is leading people to have trouble paying their bills, economists say…..

Housing activists also have blamed Ohio’s high foreclosure rates on predatory lending practices, such as inflating an appraisal to dupe a consumer into taking out a loan that’s higher than the home is worth.

A new law takes effect this year to control such practices, aimed mainly at people with poor credit trying to buy homes. It tightens regulations on sub-prime loans and, for the first time, allows borrowers to use Ohio’s consumer protection law to sue lenders that aren’t covered by federal lending regulations. The attorney general can sue lenders to stop fraudulent practices.”