Predatory Lending

Dodd: Subprime ‘Crisis’ Must be Dealt With 

In a Senate Banking Committee hearing yesterday addressing predatory lending and the effect of increasing foreclosures, Senator Christopher Dodd (D-CT) called for action to address what he characterized as “a grave threat from predatory, abusive, and irresponsible lending practices undertaken by too many subprime lenders.” “Today, there are too many incentives in the subprime market to make loans that put borrowers at too great a risk of failure,” Dodd said, pointing to the fact that more than half of all subprime loans go stated-income rather than full or partial doc.