The news story is quickly developing (I’ve heard of several incidents and don’t bother to collect the links) that various local authorities are pointing the legal guns against mortgage originators blaming them for predatory lending and asking to pay for the maintenance of abandoned homes.

It’s a nightmare for lenders. Instead of the few large lawsuits that the connected guys can settle under the carpet using Washington connections they are facing millions of $5,000 lawsuits, each of them so little that they don’t even cover a good lawyer, sometimes not even worth appearing in the court. But taken all together it’s real money.

Remember, all the way from founding fathers the USA politics is local. There is nothing more powerful than a horde of angry township clerks