Texas woman sues over predatory lending

A black suburban Houston woman is suing two lenders accusing them of a racially targeted predatory lending practice called "reverse redlining."

Nanette Lewis, of Baytown, says in her federal lawsuit that Alpha Mortgage USA Inc. and American Home Mortgage Servicing Inc. targeted her for a loan with onerous terms.

Efforts to reach Alpha Mortgage and American Home Mortgage for comment today by The Associated Press weren't successful.

Reverse redlining targets minority loan applicants for the worst possible mortgage deals.

The Houston Chronicle reports Lewis' lawsuit may be the first of its kind in Texas.

Similar lawsuits have been filed by the attorney general of Massachusetts and by the city of Baltimore.

Attorney Sapna Aiyer, of Lone Star Legal Aid, calls Lewis' mortgage terms "horrible, horrible."

The mortgage was for more than $175,000 on a home valued at about $156,000. Included was more than 10%, or $17,654, in points and fees and a $103,000 balloon payment due in 30 years,

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