Final answer:
Payday and auto title loans are considered predatory because they come with high-interest rates and target those least able to afford them. The securitization of these loans resulted in less scrutiny of borrowers, leading to subprime and NINJA loans. These practices negatively impacted the economy and individuals involved.
Step-by-step explanation:
The reason payday and auto title loans are sometimes referred to as "predatory lending" is primarily due to the high risk they pose to borrowers, characterized by very high-interest rates, and lenders' tendency to target vulnerable individuals who may not be able to fully understand the terms or afford the payments. During the mid-2000s, the securitization of loans led banks to issue subprime loans with terms such as low or zero down payment, minimal income checks, and low initial payments that ballooned later. These risky lending practices, including the infamous NINJA loans, contributed significantly to the devastating impact on individuals and the wider economy, prompting the loans to be dubbed predatory.