Abusive lending practices including those that strip equity from a homeowner.
Lending money in a way that is unscrupulous, illegal, or not in the best interests of borrowers.
Lending practices that exploit vulnerable borrowers, such as minorities, women, and the elderly. Such practices may include persuading borrowers that debt consolidation or mortgage refinancing is advantageous when it actually means lengthening the mortgage's term and diminishing the amount of the borrower's equity. They may also include charging exorbitant interest rates and fees, or making loans to borrowers that are almost inevitably headed for foreclosure.
Abusive lending practices that include making a mortgage loan to an individual who does not have the income to repay it or repeatedly refinancing a loan, charging high points and fees each time and "packing" credit insurance on to a loan.
A predatory loan is an unsuitable loan designed to exploit vulnerable and unsophisticated borrowers. Predatory loans are a subset of sub-prime loans. A predatory loan has one or more of the following features: 1) charges more in interest and fees than is required to cover the added risk of lending to borrowers with credit imperfections, 2) contains abusive terms and conditions that trap borrowers and lead to increased indebtedness, 3) does not take into account the borrower's ability to repay the loan, and 4) often violates fair lending laws by targeting women, minorities, and communities of color.
Abusive lending practices that include making mortgage loans to people who do not have the income to repay them or repeatedly refinancing loans, charging high points and fees each time and "packing" credit insurance onto a loan.
A practice attributed to certain mortgage lenders that seeks to take advantage of the ignorance or gullibility of borrowers. Often associated with refinancing, home equity lending or home improvement lending, these practices take on several forms: saddling borrowers with more debt than they can handle, tricking a borrower into a loan with high rates and junk fees, and overcharging or charging twice for required services. Source: Barronās Dictionary of Real Estate Terms
Unscrupulous lending that involves at least one of the following elements: - making high-cost loans based on the assets of the borrower rather than on the borrower's ability to repay the obligation - inducing a borrower to refinance a loan repeatedly in order to charge high points and fees each time the loan is refinanced ("loan flipping") - engaging in fraud or deception to conceal the true cost of the loan obligation (e.g. terms and fees) from an unsuspecting or unsophisticated borrower.
Predatory lending is the practice of convincing borrowers to agree to unfair and abusive loan terms.http://www.investordictionary.com/definition/predatory+lending.aspx Investor Dictionary Although predatory lenders are most likely to target racial minorities and the elderly, victims of predatory lending are represented across all demographicshttp://www.knowledgeplex.org/kp/text_document_summary/article/relfiles/hot_topics/Carr-Kolluri.pdf Fannie Mae Overview of Predatory Lending http://www.ftc.gov/opa/2001/04/predlend.htm Federal Trade Commission.