While ex-mayor and Republican presidential candidate Giuliani was in Florida lauding the use of alternative fuels in Brazil, candidate Edwards was in Iowa speaking out about predatory lending in the United States.
One of Edwards suggestions to congress was legislation to stop the act of predatory lending, a highly-scrutinized practice, yet widespread practice that targets low-income borrowers with high-cost loans.
Unfortunately many of those targeted by predatory mortgage lenders are already in bad financial shape, and bad loans at high interest rates are the last thing they need.
Groups targeted by predatory lending usually include minorities, the elderly and low-income borrowers who often don’t realize they have other financing options.
Along with his opposition of predatory lending, Edwards included a plan of attack, including regulating fees lenders could charge, matching what low-income Americans save in so-called “individual development accounts,” and reducing the mortgage balance to the current market value for those who declare bankruptcy in a falling housing market.
Learn more about predatory lending and how to avoid it.