Defrauding the American Dream: Predatory Lending in Latino Communities and Reform of California's Lending Law

The recent mortgage crisis has brought national media attention to the problem of predatory lending. Predatory lenders target vulnerable communities who have been precluded from conventional financial markets, and minority communities are disproportionately affected. This Note examines predatory lending in the Hispanic population to illustrate why California’s anti-predatory lending law is not effective. Many of the predatory lending trends found in the Hispanic population are mirrored in literature on predatory lending in other vulnerable communities, providing a model for legislative reform. Drawing on the contextual understanding of predatory lending as it occurs in the Hispanic community, this Note recommends specific legislative reforms to California’s anti-predatory lending law.