Why the Poor Pay More : How to Stop Predatory Lending
Editorial Reviews
Review
“Authors whose backgrounds range from law and business to sociology and economics examine predatory lending practices that target vulnerable groups. They document and offer a clear perspective of subprime lending in predominantly lower-income neighborhoods, drawing from work conducted by housing organizations on predatory lending practices. Profit incentives from subprime lending are strong, with evidence of price discrimination targeting minorities and the elderly On a positive note, subprime lenders are making credit available where previously unavailable, but unethical practices such as fraud and deception create predatory loans. Loan marketing clearly preys on the fears and misunderstandings of unsophisticated borrowers. Among the predatory practices discussed are fraud, deception, low chance of repayment loans, and equity stripping. In addition, credit costs are often driven up by mandatory credit life insurance. Even with disclosures required by the Real Estate Settlement Procedure Act, adequate education of consumers is problematical. Deregulation has increased credit availability but has encouraged high-fee mortgages that easily become predatory. This work also covers the new trend of subprime lending overseas. An excellent appendix provides detailed information on resources and agencies working on predatory lending. Recommended. Public, academic, lower-division undergraduate and up, and professional collections.”–
“In this volume, nine contributors from scholars and activists expose the practices of predatory lenders and identify their social, political, and economic consequences. They also outline active roles that individuals, advocacy groups, financial and legal service providers, and policymakers can play in reversing this trend.”–
“Squires should be praised for bringing together such a wide variety of authors....The book is accessible to a wider public than has an interest in predatory lending, and politicians, bureaucrats, and community organizers and academics alike will find at least some of the book's chapters interesting reading.”–
Book Description
The proverbial American dream of owning a home has become an all-too-real nightmare for a growing number of families. The most vulnerable segments of our society--including minorities, the elderly, and working families--are being victimized by financiers who lure them into commitments they cannot fulfill. Collectively known as "predatory lending," these practices include offering higher interest rates than can be justified by the risk, high pre-payment penalties that lock families into exploitative loans, and monstrous balloon payments that often result in default and the loss of the home. The net result can be disastrous: damage to one's credit rating, bankruptcy, and even the loss of lifelong savings. Why the Poor Pay More is an incisive exposure of these practices--how they have evolved, why they have become so prevalent in recent years, and how their negative effects can be quantified--and showcases community efforts to combat them along with outlining active roles that individuals, advocacy groups, financial and legal service providers, and policymakers can play in reversing this destructive trend.
Why the Poor Pay More : How to Stop Predatory Lending
Why the Poor Pay More : How to Stop Predatory Lending,Gregory D. Squires,Praeger Publishers,027598186X,Discrimination in consumer cre,Discrimination in consumer credit,Discrimination in mortgage loa,Discrimination in mortgage loans,Finance,Social Science,Sociology,Sociology - General,United States,Social Science / Sociology / General
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