Skip to main content

American home: Predatory mortgage capital and neighbourhood spaces of race and class exploitation in the United States

Buy Article:

$51.00 plus tax (Refund Policy)

Abstract:

Abstract

Predatory home mortgage lending has become a central concern for housing research, public policy and community activism in US cities. Regulatory attempts to stop abuses, however, are undermined by claims that ‘predatory’ cannot be defined or distinguished from legitimate subprime lending, and claims that the industry performs a public service by meeting the needs of low-income, high-risk consumers (many of them racially marginalized) who would have been denied credit in previous years. We evaluate these claims in historical-geographical context, drawing on David Harvey's theory of class-monopoly rent to analyse what is new (and what is not) in contemporary financial exploitation. We use a mixed-methods approach to (1) provide econometric measures of subprime racial targeting and disparate impact that cannot be blamed on the supposed deficiencies of borrowers, (2) qualitatively assess the rationale for judging particular subprime practices and lenders as predatory, and (3) trace the connections between local practices and transnational investment networks. The fight against predatory lending cannot succeed, we argue, without a renewed analytical and strategic emphasis on the class dimensions of financial exploitation and racial-geographical discrimination.

Keywords: class; class-monopoly rent; housing; mortgages; predatory lending; race

Document Type: Research Article

DOI: https://doi.org/10.1111/j.0435-3684.2006.00208.x

Affiliations: 1: University of British Columbia, Canada 2: University of Washington, USA 3: University of Toledo, USA

Publication date: 2006-03-01

  • Access Key
  • Free ContentFree content
  • Partial Free ContentPartial Free content
  • New ContentNew content
  • Open Access ContentOpen access content
  • Partial Open Access ContentPartial Open access content
  • Subscribed ContentSubscribed content
  • Partial Subscribed ContentPartial Subscribed content
  • Free Trial ContentFree trial content
Cookie Policy
X
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more