Prosperity Gospel May Have Helped Create Sub-Prime Mortgage Victims

On Wednesday, banks received details from the FHA on implementing the new "Hope for Homeowners" program. The program will allow some over-extended borrowers to refinance into more affordable mortgages. (CNN Money). It may be that one group of religious believers will be particularly interested. Time Magazine today suggests that the teachings of pastors preaching the Prosperity Gospel have made their followers more likely to be victims in the current mortgage crisis. The central teaching of these churches-- that God will "make a way" for the poor to enjoy the luxuries of life —encouraged followers to take out sub-prime mortgages that were beyond their means. Author Jonathan Walton says congregants were likely to believe: "God caused the bank to ignore my credit score and blessed me with my first house." Those who study the movement say it is likely that Prosperity Gospel congregants have been disproportionately victims in the current bursting of the housing bubble.