⚠️ Predatory 🏠 mortgage lending, whether undertaken by creditors, brokers, or even home improvement contractors, involves engaging in deception or fraud, manipulating the borrower through aggressive sales tactics, or taking unfair advantage of a borrower’s lack of understanding about loan terms.
Predatory lenders will target homeowners who have equity in their homes and may also have credit problems or need cash. They will advertise their services to people in financial need – people who may have fallen behind paying in their bills, or need money for medical bills, cars or costly home repairs. Often targeted are the elderly, low-wage earners and minority homeowners.
Warning signs of predatory mortgage lending:
✅ Large future costs
✅ Excessive fees
✅ Over-valued property
✅ False or misleading promises
✅ High or adjustable interest rates
✅ Repeated financing
✅ Abusive prepayment penalties
✅ Steering and targeting
