The New Predators in our Community

In the past on the Countdown, I’ve talked about the title pawn shops and payday lenders and the way they prey on poor people. Now let me introduce you to a new term, Subprime lenders. These are the people who make home mortgage loans at sometimes outrageous interest rates. Recent data from the Department of Housing and Urban Development unveils the fact that African Americans are again the targets of these predators. Almost one third of the conventional mortgage loans made to blacks in 2004 were Subprime, meaning they carried higher interest rates and fees. All of this is happening at the same time lenders and the U.S. Congress are considering weakening the Community Reinvestment Act (CRA), which requires banks to provide loans and other services to all areas regardless to their economic condition. There is a disparity in lending and it isn’t fair. Members of the clergy, community activists, politicians and concerned citizens, we must engage lenders and seek changes in their practices. We must insist on fairness and equity in our community and put an end to predatory lending in each and every category.