Impact University: Lending

Banking Reform

Prosecutors Scrutinize Minority Borrowers’ Auto Loans >

Corkery, M. and Silver-Greenberg, J. (2015-03-30, The New York Times): Reverse-redlining, a practice in which lenders focus on minority communities that typically are denied loans, is becoming increasingly prevalent in the auto industry. The terms of such auto loans are often extreme, and borrowers who default are going further into debt and economic distress. Prosecutors across the nation are looking to punish dealers and lenders who perpetuate this problem.