Senate Holds Hearings on Predatory Mortgage Lending Practices
In response to the skyrocketing number of subprime mortgage foreclosures across the country, the U.S. Senate Committee on Banking, Housing, and Urban Affairs held hearings this week on the issue of predatory mortgage lending practices. Senator Christopher J. Dodd said in his introductory statement that “this important source of wealth [home ownership] for so many American families is under a grave threat from predatory, abusive, and irresponsible lending practices undertaken by too many subprime lenders.”
The Committee heard or gathered written testimony from representatives of the National Association of Mortgage Brokers, the Mortgage Bankers Association, AARP, Rainbow PUSH Coalition, and the Center for Responsible Lending.
The Center for Responsible Lending has projected that foreclosures on subprime loans will soon reach 20%, and several consumer advocacy organizations have pointed out that these loans are made disproportionately to minority applicants, without regard to credit history or ability to qualify for more favorable loans.
July 21st, 2008 at 10:21 am
Excellent post! I’m glad to see that the Senate is addressing the issue and communicating with mortgage lenders to end predatory lending practices. Home ownership is a very important source of wealth, and families are definitely at risk from these irresponsible lenders.