Middle and low-income families are under attack from predatory lenders who offer deceptive terms, charge unfair fees, and trap the unwary or the unlucky. According to Fannie Mae, about half of the subprime borrowers could qualify for regular interest rates, but didn’t get them. That means there are hundreds of thousands of people paying much more than they should for their home loans.At least Edwards is talking about it. The lending industry is such a huge contributor to political campaigns that even Edwards is not talking in this post about actually repealing this odious law. But we have to start somewhere, and he outlines some useful lending reforms.
What’s especially outrageous is how predatory lenders go after African-American and other minority communities. If you are an upper-income African-American family, you are twice as likely to get a subprime loan as a lower-income white family. It’s incredible — even though you are doing better, you get a worse loan if you are African-American.
We didn’t see the full impact of these abuses during the housing boom, but now — with home prices sliding down and interest rates moving up — we are seeing the first signs of a big problem. Tens of thousands of families have gotten into unfair deals and are now in over their heads. Mortgage foreclosures are up 53 percent from last year, and they are expected to keep rising.
Tuesday, October 17, 2006
Today is the anniversary of Congress passing the new bankruptcy law
And John Edwards marks the day with this post at Think Progress.