Who regulates usury laws affecting noninstitutional lenders?

Usury laws, which govern the maximum interest rates that can be charged on loans, are primarily regulated by state governments. Each state has the authority to establish its own regulations regarding lending practices and what constitutes an excessive interest rate. This allows state laws to reflect the specific economic conditions and needs of their respective populations.

While the federal government has some influence over lending practices through various regulatory bodies, usury laws are typically a matter of state law rather than federal regulation. This is why options like the Federal Housing Administration, Consumer Financial Protection Bureau, and National Association of Realtors do not directly regulate these specific laws. The FHA primarily focuses on encouraging homeownership through insured loans, the Consumer Financial Protection Bureau oversees consumer protection in financial transactions, and the National Association of Realtors represents real estate professionals without specific jurisdiction over usury laws. Therefore, state governments play the key role in regulating these laws to protect borrowers from excessively high-interest rates.