Social and Behavioral Sciences Commons^™

Mortgage Lending Reform Finding Innovative State Responses To The Foreclosure Crisis, Leann Lu

Public Administration & Policy

In today’s American housing market, foreclosure can be seen as an epidemic resulting from the legal mass marketing of risky loan products and systematic overcharging of consumers in susceptible positions. Subprime mortgages are high-cost home loans intended for people with weak or blemished credit histories, and though they are intended to encourage and facilitate homeownership, not only did politicians create a flawed mortgage industry to push for this “American Dream” but it is arguably a manipulative industry that can easily be taken advantage of.1 Thus, current snapshots of the subprime market show that one in every five subprime mortgages made …