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Predatory Lending
Predatory Lending
What is Predatory Lending
Sales tactics that are aggressive, deceptive, abusive, and unfair with the specific intent to mislead homeowners
One of the main ways that people build wealth in the United States is through home ownership
Predatory Lenders deny new homeowners the opportunity to build equity and strip equity from long time homeowners
Predatory Lending practices target African American, elderly and people with low to moderate incomes
Predatory Lending Practices
Lenders rush a borrower claiming that "this is your only chance to get a loan"
Prepayment penalties that include monthly payments and refinancing out of a loan
Adjustable-Rate Loans' interest rates can significantly increase along with the monthly payments
Lenders who allow homeowners to refinance multiple times in order to charge more fees
Advertisements that say "Bad Credit Doesn't Matter"
Lenders rush a borrower claiming that "this is your only chance to get a loan"
Prepayment penalties for early monthly payments and early refinancing out of a loan
Predatory Lenders steer qualified borrowers from fixed rate loans to adjustable rate loans
At closing, the cost of the loan or loan terms are more expensive than originally negotiated
Asset-Based Lending - making unaffordable loans based on a borrower's assets instead of what they can afford.
Avoid Predatory Lending
Know and fix your credit. Request your free credit report annually from each credit agency
Consult with a HUD certified nonprofit credit counselors
Shop around., don't take the first loan offered to you
Never sign a blank document for a lender who promises to fill it in later
Don't be talked into lying or inflating your income on a loan application
Prestamos Predatorios Folleto (PDF)
Predatory Lending Brochure (PDF)
Community Development Block Grant (CDBG)
Fair Housing
Grant Writing Resources
Historic Preservation Commission
Neighborhood Associations
Predatory Lending
Grants
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