Predatory lending and loan servicing cascades drive black home foreclosures

Evidence

Now Shani owns the home where her grandmother, after three heart attacks and a battle with Alzheimer’s, died. But she lost her job, and faces the possibility of foreclosure. “Everything was, you know, kind of crumbling around me at once. My aunt had taken out a loan on the house, and it had fallen to predatory lenders…And once that loan became too much for her, of course, the home was going into foreclosure.” Like Christine Frazer and Patricia Hill, her loan passed from one company to the next—first Fremont, then to Litton, and finally to Ocwen. Federal programs didn’t help. “It was just a crazy little web in this maze of these little games they wanted to play with the housing.” — Eddie S. Glaude Jr., Democracy in Black, 324

Categorization

• XREF: Connects to the earlier Frazer and Hill cases in this book and to broader scholarship on predatory lending targeting black homeowners. — connects to: Predatory lenders converted unaffordable homes into deceptively affordable mortgages; Federal mortgage maps caused urban blight and capital flight in black neighborhoods; Predatory lending dispossessed black homeowners who banks then sold their homes to themselves. — Eddie S. Glaude Jr., Democracy in Black: How Race Still…, 54 (+9 more)
• yield-rescued: below the book’s yield-target cutoff, included anyway for connecting to: Predatory lenders converted unaffordable homes into deceptively affordable mortgages; Federal mortgage maps caused urban blight and capital flight in black neighborhoods; Predatory lending dispossessed black homeowners who banks then sold their homes to themselves. — Eddie S. Glaude Jr., Democracy in Black: How Race Still…, 54 (+9 more)

Broader Connections

• Predatory lending dispossessed black homeowners who banks then sold their homes to themselves. #expands (0.92) — Eddie S. Glaude Jr., Democracy in Black, 54
• Black homeowners lose financially whether neighborhoods stay black or gentrify #complicates (0.73) — Dorothy A. Brown, The Whiteness of Wealth, 221