What is Predatory Lending?
In communities across America, people are losing their homes and their investments because of predatory lenders, appraisers, mortgage brokers and home improvement contractors who:
*Sell properties for much more than they are worth using false appraisals.
*Encourage borrowers to lie about their income, expenses, or cash available for downpayments in order to get a loan.
*Knowingly lend more money than a borrower can afford to repay.
*Charge high interest rates to borrowers based on their race or national origin and not on their credit history.
*Charge fees for unnecessary or nonexistent products and services.
*Pressure borrowers to accept higher-risk loans such as balloon loans, interest only payments, and steep pre-payment penalties.
Target vulnerable borrowers to cash-out refinances offers when they know borrowers are in need of cash due to medical, unemployment or debt problems.
*"Strip" homeowners' equity from their homes by convincing them to refinance again and again when there is no benefit to the borrower.
*Use high pressure sales tactics to sell home improvements and then finance them at high interest rates.
