Essay Title: 

Predatory Lending

March 23, 2016 | Author: | Posted in ethics, social sciences

Slide 1

What is Predatory Lending

It describes a variety of practices , including deception , fraud , or manipulation , that a mortgage broker or lender may utilize to make a loan with terms that are detrimental to the borrower

predatory lending have increasingly garnered a big concern from various government agencies . It grabbed the attention and concern of policymakers , consumer advocates and participants in the mortgage industry “These predatory loan practices turned the American dream of homeownership into a nightmare ” as Attorney General Richard Blumenthal described . There ‘s a high interest rates [banner_entry_middle]

, excessive fees , abusive prepayment penalties , and unnecessary insurance charges

Who are the victims

They prey on susceptible , unsuspecting consumers , most elderly people because they are more likely to have considerable home equity or may have limited incomes that make them vulnerable to offers easy access to cash . Homeowners who were experiencing financial complexities

Slide 2

We would like to pinpoint how to avoid corrupt lending practices in to lessen it

deceptive marketing and sales practices

it persuades you to act right away . There ‘s a lot of lenders that offers 140 days of loan terms instead of 120 days , which was prohibited by the lending act

non-disclosure of all terms

failing to appropriately notify them of loan costs and insurance charges that is included in loan payments

falsifying documentation

lenders use false name

sign several blank , legally binding documents such as loan applications trust deeds , and grant deeds

slide 3

Watch The Hook – If a bad credit lender is trying to hook you -insistently selling their services – you have to be suspicious . You have to be alert , as some use more subtle types of hooks than the obvious hard sell

A predatory lender may try to rush you , possibly pushing you right away in signing a deal , that if you wont act now , you might lose the chance of getting it

Beware of The Line

Predatory lenders are smooth talkers watch out for the lines ‘ they use in to persuade you . Watch out for the words they use such as `bad credit , no problem ‘ and they make everything easier for you to fall in a trap

How to avoid this ? Be Knowledgeable about the lending process , legal or financial . A little research prior to seeking a lender , you have less of a chance of being tricked by predatory lenders .You won ‘t entice into a loan that higher under the basis that you ‘ll be able to refinance after a year or so for a lower rate . A lawful new home loan bad credit lender will advise you against an arrangement that consumes more than 30 of your monthly income

Avoid The Sinker – Predatory lenders victimized those upon they consider to be in a financially unstable position . Most often those whom they feel as though they don ‘t have a lot of choices when it comes to lenders . Unprincipled new home loan bad credit lenders take advantage of these situations by presenting arrangements that court loan repayment failure… [banner_entry_footer]

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