Prof. Prentiss Cox ’90 Quoted in NPR Report on Deceptive Home Refinance Deals

Professor Prentiss Cox ’90 was quoted in an NPR report about home refinancing deals that often leave homeowners in worse financial shape. As home prices nationwide have gone up dramatically since the start of the pandemic, the amount of equity that people have in their homes is rising, and many homeowners want to access that increased value. But for people with bad credit or low incomes, loans are often inaccessible. Many refinance firms are offering sale-leaseback deals as an alternative that doesn’t have to follow the regulations that apply to lenders. Professor Cox, who previously ran the consumer protection division at the Minnesota Attorney General’s Office, said, “Credit-distressed borrowers who can’t qualify for a loan in the market are being offered these products as a way to unleash the equity in the house.”