NJ Today: Predatory lenders NewDay USA & Federal Saving Bank exploit military borrowers

NJ Today, September 22, 2021, Predatory Lenders NewDay USA & Federal Saving Bank Exploit Military Borrowers 

One of New Jersey’s most outspoken progressive Democrats, McCormick said AWOL: How Watchdogs Are Failing to Protect Servicemembers from Financial Scams is a report that analyzes new government data and shows that NewDay USA and The Federal Saving Bank, two loan companies that have been punished in the past for misconduct, charge veterans tens of thousands of dollars more than their competitors.

“New Day consistently charges veterans exorbitantly high prices for VA guaranteed loans, including higher origination fees and interest rates, when compared to other VA lenders,” said Jason Richardson, Director of Research and Evaluation at the National Community Reinvestment Coalition.

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Redlining and Neighborhood Health

Before the pandemic devastated minority communities, banks and government officials starved them of capital.

Lower-income and minority neighborhoods that were intentionally cut off from lending and investment decades ago today suffer not only from reduced wealth and greater poverty, but from lower life expectancy and higher prevalence of chronic diseases that are risk factors for poor outcomes from COVID-19, a new study shows.

The new study, from the National Community Reinvestment Coalition (NCRC) with researchers from the University of Wisconsin–Milwaukee Joseph J. Zilber School of Public Health and the University of Richmond’s Digital Scholarship Lab, compared 1930’s maps of government-sanctioned lending discrimination zones with current census and public health data.

Table of Content

  • Executive Summary
  • Introduction
  • Redlining, the HOLC Maps and Segregation
  • Segregation, Public Health and COVID-19
  • Methods
  • Results
  • Discussion
  • Conclusion and Policy Recommendations
  • Citations
  • Appendix

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