Financial Services Hearing:Subprime Mortgages, Predatory Lending

March 27, 2007
The Financial Services Subcommittee on Financial Institutions and Consumer Credit, chaired by Rep. Carolyn Maloney (NY-14), is currently holding a hearing: "Subprime and Predatory Mortgage Lending: New Regulatory Guidance, Current Market Conditions and Effects on Regulated Financial Institutions."

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Chairwoman Maloney's opening remarks:

Chairwoman Maloney:

"By some estimates, 2.2 million homeowners homeowners with subprime loans made through 2006 will lose their homes."

Rep. Lacy Clay (MO-01) questions witnesses on the roots of the problem and the role of race in home loan interest rates:

Rep. Lacy Clay:

"After adjusting for such traits, blacks were still 1.6 times more likely to higher rate or subprime loans than whites when purchasing their homes, as 1.3 times as likely when refinancing. Hispanics too. So tell me, how do we address that? What do we do? How do we take the race factor out of home loans?"