Term Predatory Lending Awareness Programs
Code BH-3700.6500
Definition Programs that provide information and guidance which protect consumers who are considering homeownership, refinancing a mortgage loan or making major repairs from unscrupulous lending institutions which attempt to pressure them into signing loan agreements they cannot afford thus putting them at risk of losing their homes. Predatory lending tactics include high pressure sales techniques; misleading or fraudulent direct mail campaigns; failure to disclose unusually high interest rates, hidden transaction costs, excessive fees and punitive penalty clauses such as balloon payments; and loan agreements that are based on home equity rather than a realistic ability to repay. Predatory lenders frequently target the most vulnerable consumers including older adults, low-income individuals, minorities who are struggling financially, and people residing in communities underserved by traditional banking institutions.
Created 7/11/01
Changed 9/19/06
Use References Mortgage Awareness Programs
See Also References Foreclosed Property Redevelopment Programs (TB-3000.2000)
Foreclosure Prevention Loan Modification/Refinancing Programs (BH-3500.3400-300)
Loan Counseling (DM-4000)
Mortgage Fraud Reporting (FN-1700.1470-520)
Mortgage Modification Scam Reporting (FN-1700.1470-523)
Predatory Lending Assistance (DM-1800.6400)
External Classification Terms Housing (AIRS HO-300)
Housing (CAN HO-300)
Housing Counseling (NPC L06.02)
Housing Support (NTE L80)
Living Situation (ACH A-01)
Related Concepts Ex-Offender/Reentry Services
Older Adults
Facet Service
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Bibliographic References

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