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Are loan costs tied to CD rates? [Bankrate.com]

Wednesday, January 6, 2010 - 8:27 AM
Dr. Don at Bankrate answers the question if it's a federal law that banks cannot lend at an interest rate that is more than 2 percent above its CD yield. According to Dr. Don:
I've seen references to "criminal usury limits" at rates of 25 percent to 30 percent, but nothing about loan rates being tied to the CD rates offered by a financial institution.
Dr. Don didn't mentioned the new FDIC rate caps which are intended for banks that are less than well capitalized.
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Ken TuminKen Tumin5,471 posts since
Nov 29, 2009
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