Guiding Principles on security of tenure for the urban poor 2014, para. 48
Paragraph- Paragraph text
- Measures to regulate financial markets and institutions. The deregulation of financial markets, along with policies prioritizing homeownership, has had adverse impacts on many urban-poor households. Sub-prime loans, payment defaults and foreclosures have led to tenure insecurity and evictions in several countries. Often, financial institutions, including microcredit institutions, charge higher interest rates to the poor to mitigate the heightened risk of default. In some cases, lenders have aggressively targeted low-income households for loans with exploitative terms, without explaining the terms and conditions, and ignoring their ability to repay. States should prohibit predatory lending practices and adopt regulations to ensure that mortgage payments are commensurate with income levels and do not compromise the satisfaction of other basic needs. Regulations should also mandate the full disclosure and communication of loan terms to applicants in accessible formats and languages.
- Legal status
- Non-negotiated soft law
- Body
- Special Rapporteur on adequate housing as a component of the right to an adequate standard of living
- Document type
- Special Procedures' report
- Means of adoption
- N.A.
- Topic(s)
- Governance & Rule of Law
- Poverty
- Year
- 2014
- Paragraph type
- Other
- Reference
- SR Housing, Report to the HRC (2014), A/HRC/25/54, para. 48.
- Paragraph number
- 48
sorted by
Date added
129 relationships, 129 entities