Predatory Lending and Fraud

* Predatory lending costs borrowers over $25 billion annually.
*The Center for Responsible Lending projects over two million sub prime    households will fail within the next several years.
* The Federal Reserve reports that 54.7% (2005) of blacks paid higher than    average market rates for conventional loans.
* Sub prime lenders are more likely to have “consumer”, “finance”, and    “acceptance” in their names.

Think You Were Screwed By Your Lender And Mortgage Broker?

MOST PEOPLE DO!

Did you know approximately 80% of all mortgages have one or more serious violations? Some of these violations may cost you tens of thousands of dollars over the life of your loan. In some cases these same violations may cause you to lose your home to foreclosure.

How Can I Fight The Big Lenders And Slick Brokers?

The best way to fight them is to prove your mortgage contains violations and/or fraud. A mortgage audit can help to uncover any such problems. Remember, there’s an 80% chance your mortgage contains one or more violations!

How Can I Have My Mortgage Audited For Violations?

First, gather every document you received from both your mortgage broker and lender before, during and after the closing. This includes everything from the application and brochures you received from the mortgage broker to every piece of paper you received at and after the closing. Then, call our office for an appointment as soon as possible.

How Much Time Do I Have To File A Claim?

There’s a chance you may not have much time.  The time in which you have to file a claim against your lender and mortgage broker depends on many things including whether your loan was used to purchase your home or as a refinance and whether or not you are in foreclosure. Please contact us for further information.

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 What Is Predatory Lending?

Predatory lending is the practice of lending to borrowers using coercive, deceptive, and misleading tactics. Predatory lending practices often push the borrower into loans they can not afford which frequently results in the borrower losing their home to foreclosure. All predatory loans bear extreme similarities (regardless of the lending institution) which may include; excessive fees, high interest rates, abusive prepayment penalties, bait and switch, steering and/or targeting. Additional characteristics potentially associated with predatory lending may include, abusive collection practices, balloon payments with unrealistic repayment terms, and equity stripping associated with repeated refinancing. According to the FDIC these underhanded tactics cost borrowers over $25 billion annually!

                                         
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Fraud and Predatory Lending

Fraud

* Were you encouraged to include false information on your loan application?

* Were you asked or told to leave signature lines blank?

* Were any important line-items left blank?

* Was any information you entered on the loan application altered by the lender or broker?

Predatory Lending

* Have you refinanced your loan multiple times? If so, has the monthly payment or the
   amount you owe increased?

* Is your loan amount more than what your home is worth?

* Were there any unexpected costs not explained to you before the closing?

* Were your monthly payments higher than expected based on the initial disclosures?

* Were you required to buy credit insurance (life insurance)?

* If your payments are late will your interest rate be calculated to be repaid daily?

* Are there any prepayment penalties to refinance or payoff your loan?

* If you have a balloon loan, will you need to refinance in order to payoff that lump-sum?
 

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Most Common Mortgage Violations.

* Illegal kickbacks to brokers (a.k.a. yield spread premiums or Y.S.P.)

* Amount financed is more than TILA (Truth-In-Lending Act) disclosure states

* Unjust enrichment

* G.F.E. (Good Faith Estimate) given after consummation of loan

* Disclosures provided after loan provided

* Loan flipping

* Unnecessary products

* Mandatory arbitration

* Excessive fees

* Abusive prepayment penalties

* Steering and/or Targeting

* Bait and Switch

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Borrower’s Rights Under RESPA (Real Estate Settlement Procedures Act)

* Borrower has the right to shop for the best loan and to compare the charges of different 
   mortgage brokers and lenders.

* Borrower has the right to be informed about the total cost of the loan including the 
   interest rate, points and other fees.

* Borrower has the right to ask for a G.F.E. (Good faith estimate) of all loan and                    
   settlement charges before they agree to the loan and pay any fees.

* Borrower has the right to know what fees are not refundable if they decide to cancel the
   loan agreement.

* Borrower has the right to ask the mortgage broker to explain exactly what the mortgage 
   broker will do.

* Borrower has the right to ask questions about charges and loan terms that they do not   
   understand.

* Borrower has the right to a credit decision that is not based on race, color, religion,  
   national origin, sex, marital status, age, or whether any income is from public assistance.

* Borrower has the right to know the reason if their loan was turned down.

* Borrower has the right to ask for the HUD settlement costs booklet “Buying Your    
   Home”.

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OK, I Want My Mortgage Audited What Do I Need To Do?

First, gather all of the documents you received from both your mortgage broker and lender before, during and after the closing. This includes everything from the application and brochures you received from the mortgage broker to every piece of paper you received at and after the closing. Then, call our office for an appointment as soon as possible.

PREDATORY LOANS ARE OUT THERE . . . . .  IS YOURS ONE OF THEM?

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