What is a Predatory Loan?



Generally, a Predatory Loan is any loan that is not in the borrowerÕs 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




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