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How Predatory Lending Destroyed America

Published 08/03/08 Jeff Bennett - Print Article
E-mail - editor@economyincisis.org

Reports found instances within the state of New York where predatory lending was provided to individuals who were known to be unable to repay their loans. These negligent activities targeted minority groups such as African-Americans and Hispanics, according to CNN Money.com.

New York has witnessed 39,000 foreclosures since 2007, many of which stemed directly from corrupt lending procedures. Currently, New York ranks eighth in the nation for total home foreclosures.

New laws are quickly coming into fruition to stop this unforgivable behavior committed by certain criminals. State and national governments have enacted legislature to limit credit spending and require real estate agents, mortgage brokers and loan officers to attain licenses and fulfill educational requirements.

These horrendous acts are inexcusable and cannot be allowed to occur in the future. Their consequences have taken the homes from innocent families while making it difficult for deserving individuals to attain credit. The results have left America’s financial institutions and economy crippled and begging for help while the taxpayer may be forced to shoulder this burden. The scandalous actions of an irresponsible few have destroyed the lives of many.

Source CNN Money:

Mortgage scammers took advantage of loopholes in New York State lending laws to defraud homeowners and lending institutions all over the state, according to a new report released Thursday.

The New York State Commission of Investigations reported that the state's mortgage borrowers need more regulatory protection from predatory lenders. It also linked subprime loans closely to New York's growing foreclosure problem; in 2007, 59% of all foreclosures statewide involved subprime loans.

New York had 39,000 properties with foreclosure filings in 2007, according to RealtyTrac, the online marketer of foreclosed properties, ranking eighth in the nation behind states like California, Nevada and Florida.

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