Borrowing Trouble

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A new lending market appeared to serve those with no credit history. It’s called sub-prime lending, and while a decade ago it was a $30 billion industry, last year it made $300 billion available for the purchase and refinancing of homes. It’s not all good news. Hordes of shady brokers swept in, slick talkers who meet you at a church picnic and offer an easy loan to make your dreams of home ownership or debt consolidation come true. Many customers wind up stripped of what little savings they had. Some even lose their homes.

Guests:

Mark Pearce, President, Center for Responsible Lending.

Steve Bartlett, President of the Financial Services Roundtable.

Wilma Perry, Truckstop manager, former homeowner.