What You Need to Know to Avoid Predatory Lending?
Predatory lending is defined as any lending situation that is not structured in the borrower's best interests. To avoid predatory lending, conduct due diligence on any possible lender and ensure that they are licensed and in good standing with appropriate regulatory organizations.
Speak with your real estate agent: If you have questions about your lender, your agent may be able to help. Maybe your worries are just regular home-buying nerves. Perhaps not. An skilled agent should be able to tell the difference. Of course, if your loan was recommended to you by your realtor, this may not be the greatest alternative.
Examine your paperwork:Â Look for blank sections or documents near signature lines, dollar figures that do not match the amount you are attempting to borrow, and fees that are greater than usual. An origination cost that is noticeably higher than this is grounds for concern.
Make contact with a state or federal resource: If you believe your lender is acting unethically or illegally, the Department of Housing and Urban Development (HUD) maintains a list of local options organized by state that can assist you.
Please contact the FBI:Â Mortgage fraud is a felony. Contact the FBI if you believe you are a victim.
Contact the Department of Housing and Urban Development (HUD) at the following address:Â To report a concern with your lender, you can email the HUD directly.
Speak with another lender:Â You have the right to a second opinion at any time. Try asking a trusted friend or family member for a referral to another lender. Speaking with another lender may either assuage your anxieties or confirm your suspicions.
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