You could be forgiven for thinking that predatory lenders really only go after poverty-stricken borrowers. However, a recent study by the San Diego Business Journal found that 73% of predatory loans were made to middle and upper-class borrowers.
The report, compiled by Bouton & Associates, a San Diego bank consulting firm, found 30,000 of 219,000 loans approved in 2004, or 14 percent, were considered predatory.
While 27 percent of the predatory loans were made to low- and moderate-income borrowers, a startling 73 percent of the borrowers came from either middle-income or upper- income census tracts, the report stated.
Middle Class Borrowers Fall Prey to Predatory Lending [Mortgage Lending Abuse Law Blog]