Predatory lending and the destruction of the African-American dream

Machine generated contents note: 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. The Sub-prime Mortgage Market Collapse

1. The Shadow Banking Sector Seriously Exacerbated the Misconduct

2. The Complicity of Credit Rating Agencies

3. The Role of the Government-sponsored Entities in the Sub-prime Meltdown

4. Failure of Regulatory Oversight

4. Predatory Lending Targeted African Americans

I. The 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. The 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. The Implications of the Collapse of the Mortgage-backed Securities Market for Consumer Borrowers

I. The 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. The Bank of America Settlements

1. The Conduct of Bank of America, Countrywide Financial and Merrill Lynch

2. Relief to Bank of America's Consumer Borrowers

III. The Citigroup Settlements

1. The Conduct of Citigroup

2. Relief to Citigroup's Consumer Borrowers

IV. The Goldman Sachs Settlement

V. The JP Morgan Chase & Co Settlements

1. Relief to JP Morgan Chase & Co Mortgage Borrowers

2. Consumer Relief under the NMS

VI. The Wells Fargo Settlements

1. Wells Fargo's Conduct

2. Wells Fargo's Relief to Mortgage Borrowers

VII. The Ocwen Financial Corporation Settlement

VIII. The Deutsche Bank Settlements

IX. The Credit Suisse Settlements

1. Credit Suisse's Conduct

2. Relief to Credit Suisse's Mortgage Borrowers

X. The Ally Financial, ResCap, and GMAC Settlements

XI. The Morgan Stanley Settlements

XII. The SunTrust Settlement

1. SunTrust's Conduct

2. Relief to SunTrust's Mortgage Borrowers

3. SunTrust Misconduct Regarding Home Affordable Modification Program

XIII. The HSBC Settlements

XIV. The 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.