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.






Leave a Reply

Your email address will not be published. Required fields are marked *