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Articles 31 - 32 of 32
Full-Text Articles in Law
From Credit Denial To Predatory Lending: The Challenge Of Sustaining Minority Homeownership
From Credit Denial To Predatory Lending: The Challenge Of Sustaining Minority Homeownership
Patricia A. McCoy
Years of discriminatory behavior against minority households have damaged their ability to build wealth. One of the most financially destructive practices endured by minority households is the excessive overpayment to finance a home purchase or access accumulated equity in a home. The market conditions that position blacks, and to a lesser extent, Latino households, to be the principal targets of predatory mortgage lending have their roots in decades of legally sanctioned housing market discrimination. Some minority households lack the financial knowledge or awareness to protect themselves. In other cases, years of discriminatory financial practices have contributed to rendering them ineligible …
A Tale Of Three Markets: The Law And Economics Of Predatory Lending
A Tale Of Three Markets: The Law And Economics Of Predatory Lending
Patricia A. McCoy
Predatory lending - the practice of making exploitative high-cost loans to naive borrowers - has spurred policy-makers, activists, lenders and scholars to debate whether intervention is warranted and, if so, what type of intervention is appropriate. The solution requires understanding the incentives in the home mortgage market that have fueled predatory lending. Recent changes in the credit market have created new possibilities for lenders to profit by exploiting information asymmetries to the detriment of unsophisticated borrowers. As a result, a new, predatory lending market has emerged alongside the legitimate prime and subprime home mortgage markets. Neither market forces nor existing …