Mortgage crisis has hit Latinos especially hard

Latino homeownership is at risk because of this crisis, he said. Lenders are saying they don t want to lend because they think it s dangerous. Clearly, more regulation of the mortgage-lending industry is needed, said Paul Leonard, who oversees California operations for the nonprofit Center for Responsible Lending.

The state Legislature could help, he said, by coming up with as much as $10 million in funding to help nonprofit counseling agencies that are overwhelmed with calls for help from borrowers who can no longer make their mortgage payments. Subprime lending has targeted minority buyers, it s reckless, and it s set up thousands of Americans to fail, Leonard said. You need more documentation to get a payday loan than a mortgage.

Mortgages have been sold into the secondary market, and there is not a single investor, Blackwell said.
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