| Description |
1 online resource (xvi, 309 pages) |
| Contents |
1. Introduction -- I. Research Yletliodology for This Book -- 2. Foreclosure: At What Cost and to Whom? -- I. Foreclosure -- II. Theoretical Framework and Principles That Inform Deeper Consideration of the Foreclosure Issues -- III. A Focus on African Americans as Specific Targets of Predatory Lending -- 3. Predatory Lending Practices Prior to the Global Financial Crisis -- I. Collusion by Market Players -- II. Redlining and Discriminatory Zoning Set the Stage for Predatory Lending -- III. Careless and Predatory Lending Commenced Prior to the Global Financial Crisis -- 1. Predatory Products -- 2. One First-hand Account -- 3. Predatory Refinancing and Loss of Equity -- 4. Securitization as a Significant Cause of the Sub-prime Meltdown -- 5. Collateralization Offloaded Risk -- 6. Third-party Mortgage Servicers Engaged in Egregious Conduct -- IV. Sub-prime Mortgage Market Collapse -- 1. Shadow Banking Sector Seriously Exacerbated the Misconduct -- 2. Complicity of Credit Rating Agencies -- 3. Role of the Government-sponsored Entities in the Sub-prime Meltdown -- 4. Failure of Regulatory Oversight -- 4. Predatory Lending Targeted African Americans -- I. Targeting of African Americans -- 1. Qualified for Traditional Mortgages but Were Steered Inappropriately -- 2. So-called Liar Loans -- 3. Historical Context Helps Explain Why African Americans Were Targeted -- 4. Overt Racism Continues Today -- II. Narrative That Blames the Individuals Victimized by Predatory Lending -- 1. Judicial Contributions to Victim-blaming -- III. Post-racialism -- IV. Continued Victimization: Why No Help for Predatory Lending Targets? -- 5. Implications of the Collapse of the Mortgage-backed Securities Market for Consumer Borrowers -- I. Widening Wealth Gap -- II. Lack of Relationship with Lenders Exacerbates Financial Hardship -- 6. A Missed Opportunity -- I. Bankruptcy Reform Could Have Provided a Vitally Important Safety Net -- 7. Financial Crisis Reforms Woefully Inadequate -- I. An Inadequate Legislative Agenda to Address Predatory Lending -- 1. Home Affordable Modification Program Created Incentives for Further Egregious Behaviour -- 2. Short Sales and Transfers of Deed in Lieu of Foreclosure Exacerbated Inappropriate Incentives -- 3. Reform Measures Not Sufficient -- 8. Incomplete Justice: Legal Actions against Predatory Lenders -- I. Settlements of Lawsuits for Predatory Lending Brought by the U.S. Department of Justice and State Attorneys General -- 1. National Mortgage Settlements -- 2. Understanding the Terms of Settlement -- II. Bank of America Settlements -- 1. Conduct of Bank of America, Countrywide Financial and Merrill Lynch -- 2. Relief to Bank of America's Consumer Borrowers -- III. Citigroup Settlements -- 1. Conduct of Citigroup -- 2. Relief to Citigroup's Consumer Borrowers -- IV. Goldman Sachs Settlement -- V. JP Morgan Chase & Co Settlements -- 1. Relief to JP Morgan Chase & Co Mortgage Borrowers -- 2. Consumer Relief under the NMS -- VI. Wells Fargo Settlements -- 1. Wells Fargo's Conduct -- 2. Wells Fargo's Relief to Mortgage Borrowers -- VII. Ocwen Financial Corporation Settlement -- VIII. Deutsche Bank Settlements -- IX. Credit Suisse Settlements -- 1. Credit Suisse's Conduct -- 2. Relief to Credit Suisse's Mortgage Borrowers -- X. Ally Financial, ResCap, and GMAC Settlements -- XI. Morgan Stanley Settlements -- XII. SunTrust Settlement -- 1. SunTrust's Conduct -- 2. Relief to SunTrust's Mortgage Borrowers -- 3. SunTrust Misconduct Regarding Home Affordable Modification Program -- XIII. HSBC Settlements -- XIV. UBS Settlements -- XV. No Way to Tell if Consumer Borrowers Received Any Principal Forgiveness -- 1. Professionals within the Banks, Brokerages, and Servicing Companies Test Their Own Compliance with the Lawsuit Settlement -- XVI. Lawsuits against Predatory Lenders Brought under Anti-discrimination Law -- XVII. Settlement Means No Admission or Finding of Liability -- 9. A Sub-prime Loan by Any Other Name Is Just as Predatory -- I. Non-prime Mortgages -- the New Sub-prime -- II. One Mod -- the Latest Iteration of Private Sector Loss Distribution Strategy -- III. Mortgage Modification Still a Scam -- IV. Other Predatory Lending -- 1. Non-prime Home Equity Loans -- 2. Contracts for Deed -- 3. Predatory Auto Loans -- 4. Continuing Discriminatory Practices -- 5. Smart Loans -- 6. Public Sector Predation -- 10. Forgiveness rather than Forbearance or Foreclosure -- I. Effective Structural Reform Is Only Possible if There Is Widespread Recognition of the Permanence of Racism -- II. Impose Rigorous Limits on the Type and Nature of Products and Services -- III. Effective Corporate Governance and Oversight Is Needed as Well -- 1. Worker-sponsored Capital Could Press for Enhanced Corporate Governance and Protection of African-American and Other Consumer Borrowers -- 2. Tax Incentives Could Also Assist -- 3. Finding Innovative Ways of Delivering Mortgage and Banking Services -- IV. Homes and Hearts |
| Summary |
Since the Great Recession of 2008, the racial wealth gap between black and white Americans has continued to widen. In Predatory Lending and the Destruction of the African-American Dream, Janis Sarra and Cheryl Wade detail the reasons for this failure by analyzing the economic exploitation of African Americans, with a focus on predatory practices in the home mortgage context. They also examine the failure of reform and litigation efforts ostensibly aimed at addressing this form of racial discrimination. This research, augmented by first-hand narratives, provides invaluable insight into the racial wealth gap by vividly illustrating the predation that targets African-American consumers and examining the intentionally obfuscating settlement terms of cases brought by the U.S. Department of Justice, states attorneys, and municipalities. The authors conclude by offering structural, systemic changes to address predatory practices. This important work should be read by anyone seeking to understand racial inequality in the United States |
| Bibliography |
Includes bibliographical references and index |
| Notes |
Online resource; title from digital title page (viewed on June 24, 2020) |
| Subject |
Discrimination in mortgage loans -- United States
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Predatory lending -- United States
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African Americans -- Economic conditions.
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African Americans -- Economic conditions
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Discrimination in mortgage loans
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Predatory lending
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United States
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| Form |
Electronic book
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| Author |
Wade, Cheryl L. (Cheryl Lyn), 1956- author.
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| ISBN |
9781108865715 |
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1108865712 |
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