Don't Borrow Trouble® Campaign
Most mortgage lenders and brokers have their customers' best interests in mind but there are some who may try to take advantage of consumers by using "abusive" or "predatory" lending practices.
Homeowners can best protect themselves with knowledge. By becoming more informed as consumers, homeowners can better safeguard themselves and ensure they get the best mortgage for which they are qualified.
The Don't Borrow Trouble® campaign arms homeowners with the information they need to protect their homes.
What is Predatory Lending?
Although predatory lending is not defined by federal law and individual states define abusive lending differently, these practices usually involve stripping equity away from a homeowner. Predatory or abusive lending practices can include:
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Repeatedly refinancing a loan within a short period of time and charging high points and fees with each refinance.
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"Packing" a loan with single premium credit insurance products, such as credit life insurance, and not adequately disclosing the inclusion, cost or any additional fees associated with the insurance.
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Charging excessive rates and fees to a borrower who qualifies for lower rates and/or fees offered by the lender.