As I was reading the article on Predatory Lending, in our test book titled, 'Urban Society', I was applauded and yet not too surprised. What we had for some time prior to last years near financial meltdown was the result of a sort of 'Wild West Show'. In other words, a no holds barred, with an anything goes home loan lending practice mentality to meet the objective of maximizing short term lender profits. It is typical of a classic Wall Street mentality; which is looking only at next quarter's profit reports.
Historically, redlining was the practice of not lending to certain demographic profiles or specific geographic areas, e.g., inner city neighborhoods. The idea of 'redlining in reverse', as discussed in our text, became an unscrupulous lending practice, i.e., predatory lending to many of those same demographic profiles and geographic locations that had been previously ignored or out rightly rejected as a potential customer base. So now, 'the chicken has come home to roost' and we are all paying the cost of the absolute, unconscionable greed of an all too unregulated lending industry.
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