tag:blogger.com,1999:blog-1194375569044391746.post4696279279595663594..comments2024-03-28T05:30:09.322-04:00Comments on Corporate Justice Blog: Predatory Lending and the Racial Wealth GapSteven Ramirezhttp://www.blogger.com/profile/16741346526253732489noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-1194375569044391746.post-22661374342210052112010-10-20T20:30:04.405-04:002010-10-20T20:30:04.405-04:00The oversight mechanism for the mortgage market wa...The oversight mechanism for the mortgage market was lacking for many years, which contributed significantly to the housing bubble and subsequent decline. With little oversight, it is hardly surprising that predatory lenders would seek to exploit anyone they can. Even people with a financial background can be overwhelmed when trying to understand all the fees, the interest rate amortization schedules, and the optimal capital financing decisions that should be made when evaluating different funding options. Couple the complexity of the options with mortgage brokers with no morals, banks that simply cared to resell the bad loans on the open market, and "hard sale" tactics, and there is a bad recipe. The lending industry should be regulated no differently than perhaps the public accounting sector. Tests and background checks should be required for mortgage brokers, and more strict criminal statutes to reduce predatory lending towards lower income groups should be enacted.Keith K. (FIU)noreply@blogger.comtag:blogger.com,1999:blog-1194375569044391746.post-26416162224989487342010-04-18T20:31:31.580-04:002010-04-18T20:31:31.580-04:00One main reason predatory lending exist is because...One main reason predatory lending exist is because of uneducated consumers. It would behoove us to educate ourselves and know what fees are customary and what fees are nonsense. Brokers getting paid on the front as well as the back end. Most banks don't require a prepayment penalty so why would it be required on a interest only loan for someone who has a 750+ credit score who will have to refinance in 5 years. Most people don't know what to ask because this isn't something the average consumer does on a daily basis.Mohammednoreply@blogger.comtag:blogger.com,1999:blog-1194375569044391746.post-57313515587002809432010-03-15T16:19:58.018-04:002010-03-15T16:19:58.018-04:00It, is unbelievable to think that after all the ha...It, is unbelievable to think that after all the hard work the government did to create equality in America that we are still so far behind in actually having equality. It's no surprise the large loans from big companies are considered predatory because that's exactly what large comapanies are...predators!<br />-David Rubin, St. Thomas University School of LawRubeshttps://www.blogger.com/profile/14652401160309330482noreply@blogger.comtag:blogger.com,1999:blog-1194375569044391746.post-83808617106285602442009-08-15T10:13:40.214-04:002009-08-15T10:13:40.214-04:00I'm an eighty plus year old senior who appreci...I'm an eighty plus year old senior who appreciates your analytical approach in challenging the status quo of disparities in wealth between white Americans and people of color. It's an uphill struggle that continues, regardless of competency or education, against<br />unfair labor and loaning practices.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1194375569044391746.post-64107499277858381632009-08-14T12:42:58.545-04:002009-08-14T12:42:58.545-04:00Thank you for this post.
Recently, in Illinois, t...Thank you for this post.<br /><br />Recently, in Illinois, the state filed charges against Wells Fargo for predatory lending targeting minority communities. Here is the link:<br /><br />http://www.illinoisattorneygeneral.gov/pressroom/2009_07/20090731.htmlSteven Ramirezhttps://www.blogger.com/profile/16741346526253732489noreply@blogger.com