Predatory Lending

Predatory lending occurs when greedy mortgage companies and brokers target financially vulnerable communities (the elderly, racial and linguistic minorities) and coerce these borrowers into paying more for a loan than other similarly situated borrowers.  As a result of the predatory lender’s unfair and aggressive sales tactics--including steering borrowers, who were eligible for prime loans, into subprime loans--these financially vulnerable borrowers cannot afford to repay the loans.  The borrowers then face the loss of their home and any equity they had acquired, as well as severe damage to their credit.

Predatory loans may have some or all of these features:

  • Unaffordable monthly payments
  • High interest rates
  • Excessive points and fees
  • Excessive insurance premiums
  • Excessive prepayment penalties
  • Loan flipping (refinancing a mortgage loan which does not benefit the homeowner)
  • Change in the terms of the loan at closing

If you suspect that you may be the victim of predatory lending practices, you can fill out an intake form online or contact our office.