Using the Fair Housing Act to Combat Predatory Lending

Frank Lopez

J.D., Georgetown University Law Center, 1999; B.S., University of Florida, 1996

In this Article, Frank Lopez examines various solutions to the widespread problem of predatory lending. Because minority borrowers are shut out from mainstream lending institutions, predatory lenders can make loans with exorbitant rates and excessive closing costs to low-income borrowers. These high costs often force borrowers into default, allowing lenders to foreclose on their homes. The Article first discusses the evolution and consequences of predatory lending in poor minority communities. Next, the article discusses several legal options that have been offered as a means to combat predatory lending, including: the Community Reinvestment Act, the Truth in Lending Act, the Civil Rights Act of 1866, and the doctrine of unconscionability. The Article makes a thorough examination of these options, finding that each is inadequate to the task of deterring predatory lending practices. Ultimately, Lopez concludes that the Fair Housing Act is the most effective means to combating predatory lending.

Vol. VI, No. 1, p. 73 (1999)

Revised July 17, 2003 (MD)