Predatory lending has run largely unchecked. Here’s one of the best articles I have seen written on the topic….Wolves in Small Print
Buyers aren’t the only ones screaming. Nationally and in Fort Worth, some of those working in the real estate and mortgage business are also coming forward to charge that the real estate lending business is fraught with fraud. Those professionals say that appraisals are being inflated to buoy up higher housing prices, bigger loans, and higher fees for the industry. First-time home buyers without down payments and with poor credit histories are being pushed through the mill, critics say, and come out the other side with loans they have little chance of repaying. That in turn is pushing foreclosure rates to alarmingly high levels.
Tags: Soapbox Blog, Appraisal Pressure, Mortgage Fraud, Redlining and Predatory Lending
Predatory Lending in New York. Now that’s an oxymoron.
I think predatory lending is a more serious issue in poor and urban neighborhoods. The main reason being that the established banks do not care to offer banking services in these places. The consequences are criminals who take advantage of poor uneducated folks. I think its a criminal offense and the offenders deserve severe punishment.
Education the public on intelligent borrowing is key, especially, in areas where predatory lending is high.