The Feldman Law Center's Outreach and Recovery Program versus Predatory Lending
Predatory lending is a term used to describe unfair, deceptive, or fraudulent practices used by some lenders during the loan origination process to benefit themselves at the expense of the borrower. There are no legal definitions in the United States for predatory lending, as such; the term is used basically as a catch all phrase for specific illegal activities in the loan industry.
During the run up in real estate prices predatory lending practices became an everyday occurrence as, for example, potential borrowers were urged by lenders to fudge income and asset statements to qualify for homes that they could not actually afford.
The
Feldman Law Center has identified a number of predatory practices which may have put borrowers into loans that they couldn't qualify for or did not understand leading to situations which ultimately resulted in the risk of or actual loss of their home to foreclosure.
These practices include:
Instructions to falsify loan information
Recommendation of stated income or "no doc" loans when a traditional loan would result in a mortgage with lower interest rates
Excessive commissions
Excessive points and fees
Inadequate disclosure of fee and interest rate schedules
Undisclosed balloon payments
Equity stripping occurs when a lender loans more than they know the borrower can afford. In situations where the property has significant equity, the lender waits for the homeowner to default and then forecloses, taking the owner's equity
Loan flipping - This occurs when a lender convinces a borrower to refinance repeatedly, generating fees and commissions for the lender. This is often accompanied by exaggerated appraisals which can leave the borrower owing more than property is worth.
Insurance packing - This practice entails the inclusions of undisclosed and overpriced insurance policies into the mortgage to increase fees and commissions
If you feel you have been subjected to any of these practices,
Feldman Law Center's recently announced Outreach and Recovery Program can help reverse charges and modify terms on your mortgage to reflect a more equitable monthly payment.
Call today at (800)-662-5133 to put The Feldman Law Center to work for you.
