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Washington Mutual specialized in such loans.
The agency guaranteed some $20.6 billion in such loans in the last fiscal year.
Analysts at Credit Suisse estimate that banks have refinanced about €60 billion in such loans.
In March, banks issued about 510 billion renminbi in such loans.
With more than half a trillion dollars in such loans outstanding, that represents a source of major losses for banks.
But environmentalists, among others, are hoping that the recent interest in such loans will continue, even if fuel prices drop.
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That belief led to far too much capital going into such loans, which in the long run made such loans even riskier, and the losses to those who financed them all the greater.
In Shelby County, which includes Memphis, one of every eight Wells Fargo loans in predominantly black neighborhoods resulted in foreclosure, compared with only one in 59 such loans in white neighborhoods, the lawsuit said.
In fact, such loans can be discharged in rare cases, when borrowers are able to show that repaying would cause undue hardship.
Because of the additional risks involved in making such loans, the company has said, it must charge higher fees in interest rates than conventional lenders do.
In 2002, such loans totaled $124.8 million; the year before, they were $70 million.
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