What is Predatory Lending

In America, people may lose their homes because of predatory lenders or mortgage brokers who:

• sell houses for more than the properties are actually worth using false appraisals,
• encourage borrowers to make false statements about their income in order to get a loan,
• delibrately lend more cash than a borrower can afford to repay,
• charge high interest rates,
• charge for unnecessary services,
• push borrowers into higher-risk loans, such as balloon loans,
• try to convince borrowers to cash-out refinances offers when they are in need of cash due to medical or debt problems,
• try to convince borrowers to refinance when it’s not necessary,
• try to sell high interest home improvements.