Subprime Lending Implosion and Ripping Off the Poor

The Center for Responsible Lending estimates that between 1998 and 2006, about 1.4 million first-time home buyers purchased their homes using subprime loans. But the study also finds that the number of projected subprime foreclosures in that same period to be a whopping 2.4 million. This means subprime lending results in a net loss of home ownership for almost one million families.

[M]ost Americans think, that mortgages are made by banks and depository institutions, but especially in the subprime market that’s not the case. They’re largely made through state-chartered finance companies that don’t have any bank deposits, and so they don’t have any bank regulators.

The full nauseating story is here.

Published by Andy

Gay Hoosier Taurus INFJ ex-playwright pianist gymbunny published author in San Francisco.

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