Who's to blame for dangerous subprime mortgages?
We've all been reading stories about the subprime mortgage meltdown for months, but a comprehensive study by the Reinvestment Fund, a nonprofit that works to stimulate growth in low- and moderate-income neighborhoods, made the issue hit home.
A Philadelphia Inquirer front-page story on the study offered some heartbreaking cases of Philadelphians likely to lose their homes, and perhaps tumble into bankruptcy. It's a tragedy, an outrage.
To be precise, the TRF study was on predatory lending -- selling high-risk mortgages to people who cannot afford them. That's not quite the same as subprime mortgages, which are loans to people with poor credit. Not every subprime mortgage is predatory.
But most predatory loans are subprime mortgages.
The first homeowner described in the story bought a $66,900 house in 2003 with plans to fix it up and rent it out.
No comments:
Post a Comment