XPREDATORY
LENDING X
If you don't understand a word, check it out in the glossary.x
Predatory Lenders are unscrupulous companies that target
homeowners who are "equity-rich" and "cash-poor".
That is, homeowners with home equity and credit problems that need cash,
particulalry elderly, low-income and minority households. The use high
pressure tactics to charge customers very high fees tht they cannot afford
so that the customer will eventually lose their home and the Predatory
Lender makes a profit off of the equity in the property.
Some of the early warging signs that indicate you might we dealing with a Predatory Lender are:
The office is a "one-stop" shop for cash, credit,
loans, and/or other services
You are pressured into signing agreements before you have read them
The payment schedule includes a large "balloon" payment
The agency act as a referral service for other lenders
There seems to be an unreasonable amount of fees
Additional, unwanted servcies, like credit life insurance, are added to
the contract.
Your greatest weapon against predatory lenders is knowledge. By learning some simple facts about lending and studying the methods used by predatory lenders, you may just save thousands of dollars, or evern more importantly, your own home.
HIC offers a workshop called 'Home Owner Education-Predatory Lending' once a month. Other Homeownership Agencies also provide these types of workshops. Call one of us and attend.
You may also want to check out the following:
Better Business Bureau
A Legal Servcies Agency
A Fair Housing Agency
A Consumer Credit Counseling Service
(Call us if you want a referral)
To file a complaint against a lender contact:
Federal Reserve System (www.bog.frb.fed.us)
Office of Thrift Supervision (www.access.gpo.gov/ots)
Federal Deposit and Insurance Corporation (FDIC) (www.fdic.gov)
To learn more about Predatory Lending practices, what to watch out for and what laws there are to protect you, you may want to contact:
Mortgage Bankers Association-Predatory Lending Resource
Center (www.mbaa.org/resources/predlend/)
HUD Predatory Lending webpage: (www.hud.gov/office/hsg/pred/predlend.cfm)
Consumer Action
(www.consumer-action.org)
National Consumer Law Center
(www.nclc.org)
Other Resources: FannieMae.org, FreddieMac.org, FDIC.org. All of these websites have important information about your money and what you need to do to own a home. If you live in Alameda or Contra Costa Counties you may come in (call for an appointment!) to use our public computers and explore these websites. We also have a library of information that may be useful to you.
Go to the Important Resources page for a list of other agencies that may be able to help you.