Predatory lending can drain the wealth from families, destroy the benefits of home ownership, and often leads to foreclosure. In 2001, the Center for Responsible Lending estimated that the cost of predatory mortgage lending was more than $9.1 billion each year, but due to recent activity, they now report that the number has become “incalculable.”
Although the Center for Responsible Lending reports that the cost of predatory lending has become “incalculable,” they have estimates of the cost of predatory lending per state. For instance, they estimate that foreclosures taking place from 2009 to 2012 within the state of Arizona will cost $51.7 billion in lost home equity wealth. However, they estimate the lost home equity wealth from 2009 to 2012 in Missouri will cost $5.9 billion. To find out how your state compares, follow the link in the next Field Trip to visit the Center for Responsible Lending’s Web site.
To find out exactly how much of an impact predatory lending has had in your area, visit the Center for Responsible Lending’s Web site and click on your state.