Why the Poor Pay More: How to Stop Predatory Lending

The book examines predatory lending practices which mainly target vulnerable groups. It documents & offers a very clear insight into the subprime lending industry which caters to the lower-income neighborhoods, drawing its content from the work conducted by housing organizations on such predatory lending practices.

I recently read this book. It provides readers useful facts and data on how predatory lending practices are affecting common people.

The book talks about economic consequences of predatory lending, legal & economic inducements to predatory practices, how federal legislations are be used to stop such lending practices and what as common people can do to stop predatory lending.

I would advice people to go through it.

I agree that subprime loans serve a purpose by enabling high risk borrowers access credit for home purchase and refinance but it is also a fact that many of these loans do not serve the best interest of borrowers.

Fannie Mae and Freddie Mac have estimated that 30% to 50% of people receiving subprime loans could in fact qualify for prime loans if they are more aware on how to proceed properly.

The book should be a useful resource for people who want to know more about how to prevent themselves from falling prey to subprime lending traps.

Miller

This is what I came to know after going through various articles on predatory lending.

Not all subprime loans are predatory, but virtually all predatory loans are subprime.

So borrowers going to get sub primes need to be careful !

Delia Gonzalez

The book is informative but at $46.95 looks to be priced higher. Housing organizations have a vital part to play in stopping predatory practices. It’s good to see that this book has emphasized their importance.


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