What is a Predatory Loan?

 

 

Generally, a Predatory Loan is any loan that is not in the borrower’s best interest \...and it may be illegal.

 

The following are indicia of a predatory loan:

 

Increased or Increasing Monthly Payments

 

Loan Payments That the Borrower Cannot Afford

 

Aggressive Solicitation

 

Falsifying Loan Documentation

 

Shifting Unsecured Debt Into A Mortgage

 

High Loan-to-Value Rate

 

Changes in Loan Terms or Costs

 

High Interest Rate

 

Balloon Payments

 

Negative Amortization

 

Pre-Payment Penalty

 

Steering To High-Rate Lenders

 

Flipping

 

Violations of state and federal statutes including those pertaining to real estate closings, truth in lending and other consumer protection laws.