A/HRC/10/7 page 21 particularly affected by the crisis. It has been estimated that 180,000 families originally from Latin America, are in risk of default because they cannot afford their interest payments on home loans.73 65. In this context, the practice of so-called predatory lending has also disproportionally impacted some categories of the population.74 Predatory loans are characterized by excessively high interest rates or fees, and abusive or unnecessary provisions that do not benefit the borrower, including balloon payments or single premium credit life insurance, large prepayment penalties, and underwriting that ignores a borrower’s repayment ability.75 66. Predatory lending practices have been described as including features such as unreasonable and unjustifiable loan terms and outright fraudulent behaviour that maximizes the destructive financial impact on consumers of inappropriate marketing strategies and loan provisions. Importantly, it has also been seen to include targeted marketing to households on the basis of their race, ethnicity, age or gender or other personal characteristics unrelated to creditworthiness.76 Thus, predatory lending includes lending that is inherently discriminatory and must be prohibited. H. Security of tenure, evictions and homelessness 67. Security of tenure, for both owners and lenders, has been deeply affected by the crisis. In a number of cases, foreclosure concerned second residences, but in the majority of cases, foreclosure has meant the loss of the unique home of a household, often resulting in homelessness or inadequate living conditions. The rise of “tent cities” and encampments has been reported in some cases, apparently as a direct result of foreclosures.77 68. Foreclosures have also concerned housing units that were rented. In some cases, tenants were not aware that their landlord was subject to a foreclosure procedure and were evicted from their homes with little or no prior notice. 69. It is important to understand the impact of foreclosure - or eviction - on a household. It pushes people into more difficult situations and inadequate living conditions and impacts their ability to cope with further hardship, particularly where it results in homelessness. It is much 73 Imigrantes protestam em Madri, Ultime Segundo, Brazil, available at http://ultimosegundo.ig.com.br/economia/2008/10/13/imigrantes_protestam_em_ madri_2044281.html. 74 J.H. Carr. and L. Kolluri, “Predatory lending: an overview”, Fannie Mae Foundation, 2001. 75 Ibid. 76 Ibid. 77 CBS News has reported tent cities in Seattle, Portland, Fresno, Columbus, and Chattanooga. There are also reports of encampments in Seattle, San Diego, and Columbus, Ohio, Santa Barbara and Fresno California. See also http://www.msnbc.msn.com/id/26776283/.