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Predatory
Lending Links
Paying
More and Getting Less - An Analysis of 2004 Mortgage
Lending
CRA-NC report
released September, 2005 analyzing 2004 HMDA data for 36
financial institutions doing business in North Carolina.
The report found African-Americans
in North Carolina were four times more likely than
whites to receive a high-interest rate loan in 2004.
Cash
in Your Face
Study
of the mortgage lending industry as it affects affluent
African American and Hispanic borrowers, issued September, 2004 by the NC Fair Housing Center.
Mortgage
Pricing Discrimination - Recent News
High
Cost Loans from Major Lenders in NC by Race, 2004
When borrowers with good credit are given high
cost, subprime loans, the system is not working.
The following charts show the
distribution of high cost loans by race in North Carolina in 2004, from major
lenders including Washington Mutual, Countrywide, Ameriquest, Bank of America,
New Century, and Citibank.
Seven
Signs of Predatory Lending: What to Look For in a Loan
More Predatory Lending
Resources
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Predatory lending strips homeowner
equity through illegal and unethical practices such as
excessively high fees and commissions, the
misrepresentation of mortgage terms and conditions, high
interest rates, repeated financing of loans, balloon
payments and the financing of high cost credit
insurance.
In 1999, the North Carolina
legislature passed a landmark anti-predatory lending law
to protect homeowner wealth.
The law limits prepayment penalties, bans loan
flipping, and bans single premium credit insurance.
It also includes other consumer protections for
high-cost loans.
A-credit for A-borrowers is
CRA-NC’s current focus in predatory lending.
Borrowers with good credit may not be able to get
prime rates if they walk through a subprime door.
Fannie Mae and Freddie Mac estimate that between
20% and 50% of subprime borrowers actually qualify for
prime rate loans, meaning that those borrowers are
paying more in interest than they should.
Predatory
Lending In Action
Wells
Fargo
Under Fire for Predatory Lending -
News
Coverage
SunTrust-CCB
merger - Where is the Love?
History
of CRA-NC's challenge to the 2004 merger of SunTrust and Central Carolina Bank (CCB),
and SunTrust's continued refusal to address the legacy of a
tiered pricing system that charged higher interest rates on
smaller mortgage loans – a practice that
disproportionately affected poor and minority neighborhoods.
Separate
and Unequal: The
Effects of Overcharging by Citigroup
In this report, CRA-NC estimates that
overcharging by Citigroup in 2000 cost
borrowers more than $5.7 billion in excess interest
payments over the term of a 30-year loan.
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