Testifying before the U.S. Senate Banking Committee on the effects that predatory lending and exotic mortgages have on the rising rate of home foreclosures, Douglas G. Duncan, senior vice president of the Mortgage Bankers Association, cited death, illness, and unemployment as the prevailing reasons for the foreclosure spike. No mention of the bad subprime loans that were foisted upon unsuspecting, eager new homeowners.
Both Duncan and another “expert” witness, Harry Dinham, of the National Association of Mortgage Brokers, say that subprime loans should not be blamed because the loans have allowed more cash to flow in to disinvested, minority communities. Instead, they believe, borrowers simply need to become more financially literate.
