Community Assets Blog

State Predatory Lending Practices

Predatory mortgage lending in the subprime market (for those with bad or no credit, who cannot qualify for prime interest rate loans) is a serious problem for low- and moderate-income families. Twenty-eight states have passed comprehensive reforms or enacted regulations to curb specific predatory practices. A report issued in February from the Center for Responsible Lending finds that state reforms not only cut down on abusive practices, but also increase access to loans for people who need it most.