Predatory Lending And The Foreclosure Crisis

"Subprime loans have led to one million American families losing their homes in the past decade, a new study by the Center for Responsible Lending has found. In the last ten years, the subprime loan industry...Under a subprime loan, customers with low credit ratings are offered mortgages in return for high interest rates. Proponents have advocated subprime financing as a way for low-income residents to own their first home. But new figures suggest the subprime industry is having the opposite effect...subprime lending results in a net loss of home ownership for almost one million families."