Book contents
- Predatory Lending and the Destruction of the African-American Dream
- Predatory Lending and the Destruction of the African-American Dream
- Copyright page
- Dedication
- Contents
- Figures
- Tables
- Foreword
- Acknowledgements
- 1 Introduction
- 2 Foreclosure: At What Cost and to Whom?
- 3 Predatory Lending Practices Prior to the Global Financial Crisis
- 4 Predatory Lending Targeted African Americans
- 5 The Implications of the Collapse of the Mortgage-backed Securities Market for Consumer Borrowers
- 6 A Missed Opportunity
- 7 Financial Crisis Reforms Woefully Inadequate
- 8 Incomplete Justice: Legal Actions against Predatory Lenders
- 9 A Sub-prime Loan by Any Other Name Is Just as Predatory
- 10 “Forgiveness” rather than Forbearance or Foreclosure
- Appendix
- Index
2 - Foreclosure: At What Cost and to Whom?
Published online by Cambridge University Press: 22 June 2020
- Predatory Lending and the Destruction of the African-American Dream
- Predatory Lending and the Destruction of the African-American Dream
- Copyright page
- Dedication
- Contents
- Figures
- Tables
- Foreword
- Acknowledgements
- 1 Introduction
- 2 Foreclosure: At What Cost and to Whom?
- 3 Predatory Lending Practices Prior to the Global Financial Crisis
- 4 Predatory Lending Targeted African Americans
- 5 The Implications of the Collapse of the Mortgage-backed Securities Market for Consumer Borrowers
- 6 A Missed Opportunity
- 7 Financial Crisis Reforms Woefully Inadequate
- 8 Incomplete Justice: Legal Actions against Predatory Lenders
- 9 A Sub-prime Loan by Any Other Name Is Just as Predatory
- 10 “Forgiveness” rather than Forbearance or Foreclosure
- Appendix
- Index
Summary
Chapter 2 introduces the topic of foreclosure, and includes discussion of the theoretical frameworks and principles that can inform deeper consideration of the foreclosure issues of the past decade and going forward. The chapter examines the differential impact of race among U.S. consumers. It offers interviews with individuals who are currently fighting foreclosure and their lawyers. Our investigation traces the specificity of the discriminatory targeting of black Americans for predatory schemes. The chapter also includes a framing discussion with respect to the mortgage-backed securities market, market practice and regulatory oversight at the commencement of the global financial crisis. We examine the huge gap between what regulators believed was occurring and the practice of mortgage lending on the ground. We explore the deeper connection between market design and its consequent incentives for self-dealing as primary drivers of continuing harmful conduct in financial markets. Our objective in this chapter is to give readers that may have only passing familiarity with critical race theory or financial market theory a solid context in which to read the rest of the book.
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- Publisher: Cambridge University PressPrint publication year: 2020