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
Falsifying Loan Documentation
Shifting Unsecured Debt Into A Mortgage
High Loan-to-Value Rate
Changes in Loan Terms or Costs
High Interest Rate
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.