Question:

Will a predatory lending bill resolve the issue?

Answer:

A predatory lending bill is meant to curb predatory lending practices and force lenders to make sure their borrowers can repay their loans. It is expected to standardize the home loan originating process, and reduce the chances for predatory lending practices.

However, even if the predatory lending bill does require the mortgage industry to take responsibility for their harmful practices, it does not resolve the greatest problem of predatory lending - that is, the financial ignorance of the average American.

Increasing the general level of financial education would resolve predatory lending issues much more effectively than a predatory lending bill. Even though one could experience financial hardships at a certain time, proper financial education would greatly diminish the number of predatory lending victims and make borrowers much less vulnerable to harmful lending practices.

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