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56 Syracuse L. Rev. 233 (2005-2006)
Democratizing Credit: Examining the Structural Inequities of Subprime Lending

handle is hein.journals/syrlr56 and id is 243 raw text is: DEMOCRATIZING CREDIT: EXAMINING THE STRUCTURAL INEQUITIES OF SUBPRIME LENDING Cassandra Jones Havardt CONTENTS IN TROD U CTION .......................................................................................... 234 I. FAIR LENDING AND ECONOMIC SUBORDINATION .......................... 235 A. The Equal Credit Opportunity Act ........................................... 236 B. The ECOA and Structural Inequities ....................................... 239 II. MARKET STRUCTURE AS EXCLUSIONARY CONDUCT ..................... 243 A . M arket D om inance .................................................................. 246 B. M arket Segm entation ............................................................... 248 1. Perfect Inform ation .............................................................. 251 2. Transaction Costs ............................................................... 252 3. A gency C osts ...................................................................... 254 C. Government-Sponsored Entities (GSEs)-The Secondary Loan M arket .......................................................... 255 1. B ackground ......................................................................... 256 2. M arket Liquidity ................................................................. 257 D. Conclusion: How the Market Protects Subprime L end ing .................................................................................... 2 6 1 III. TOWARDS CREDIT DEMOCRATIZATION-ADDRESSING STRUCTURAL INEQUALITIES ........................................................... 263 A. Informed Risk-Based Pricing ................................................... 265 1. The Need for Meaningful Disclosures ................................ 266 2. The Remedy for Failure to Disclose ................................... 268 IV. TOWARDS A THEORY OF ECONOMIC JUSTICE-ROOTING Associate Professor, University of Baltimore School of Law; J.D., University of Pennsylvania Law School; B.A., Bennett College. I thank those who provided encouragement and comments on this article: Devarieste Curry, JoAnne Epps, Phoebe Haddon, Frederick C. Havard, Michael Hayes, Michael Meyerson, Audrey McFarlane, Beverly Moran and Ralph R. Smith. For research assistance, I am indebted to Kimberly Endress and for summer funding to the University of Baltimore School of Law. This article is dedicated to my colleagues on the faculty and staff of the Temple University School of Law, especially The Hogs, for twelve years of fond memories.

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