Predatory Mortgages Victimize Minorities And Lower Income Home Buyers

The Senate Banking Committee heard testimony about the crisis brought on many lower income home buyers and minorities by the mushrooming growth of predatory mortgage companies. These are the same sleazy companies that flood your email inbox with mortgage offers or tie up your phone line with mortgage calls. In reality, more ethical mortgage organizations such as banks won't make such phone calls, and you seek their services and their approval of your loan. But lower income persons with less established credit easily become victims of predatory mortgage scammers.

Among Whites and Asians, only 17% of home buyers are using these predatory subprime loan rate mortgage companies, but among African-Americans the rate is a whopping 55%. Among latinos the rate is also high at 46%.

Rev. Jesse Jackson testified that these mortgage predators are taking advantage and exploiting minorities.

Last year home foreclosures jumped by 40%, largely due to so many of these mortgage predators which only set many lower income buyers to fail and lose their home and any equity paid in on it.

For now the Senate Banking Committee hearings chaired by Senator Christopher Dodd(D-CT) are just entering the hearing stage, but likely some new regulation of these mortgage scammers will be written. Whether it can pass the veto pen of Bush, a protector of almost any big money ripoff of the consumer is another matter though.