I think that to minimize or to prevent the minority from becoming victims of unscrupulous business practices

I think that to minimize or to prevent the minority from becoming victims of unscrupulous business practices

I think that to minimize or to prevent the minority from becoming victims of unscrupulous business practices,would be by banning prepayment penalties that penalize those who pay off or refinance their loans before low “teaser” interest rates end and are replaced by much higher rates. Also requiring escrows for subprime loans, including the cost of taxes and insurance, without which it is easy for lenders to deceive borrowers about the true costs of the loans. Again prohibiting stated income or low documentation loan which makes it easy for mortgage companies to inflate borrowers income, causing them to default later, ans prohibiting the steering of people who qualify for standard loans into subprime loans instead. This has been a problem among minority borrowers. Also providing better protection against fraudulent appraisals, without which many of the predatory loans that have defaulted could not have been made (Farley, 2012)