An interview with Keith Ernst, senior policy counsel for the Center for Responsible Lending, on the devastating impact of subprime loans on home ownership.
"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."