Predatory Lender

Predatory Lender

A lender who makes a loan in the hope or expectation that the borrower will default. A lender may have an incentive to commit predatory lending if he/she receives a commission for each loan made (regardless of creditworthiness), or if the lender easily can bundle and sell the mortgage to a third party, passing on the risk while still profiting. A predatory lender may be an individual or institution. Predatory lending is illegal in many jurisdictions, though the exact definition may vary from place to place.
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At one point, his staff suspected that a predatory lender was fleecing a Salvadoran family.
He sits down with William Myers, a 73-year-old worker with Aoa pleated faceAoAuyou can see himAuwho has been living with his wife in a sad trailer park on the edge of Dayton, Ohio, since they fell victim to a predatory lender.
The problem with this interpretation is that the Greedy, Predatory Lender explanation cannot explain the foreclosure rate for prime mortgages (Liebowitz, 2009).
The Department of Housing and Urban Development (HUD) provides information on how to avoid predatory lender practices, such as excessive fees and loan flipping.
In a very general sense any lender can be a predatory lender simply by adding excessive fees and interest rates to an otherwise mutually beneficial loan, or by excessively or deceitfully pushing an unsuitable loan or loan product on a customer (Fishbein 2006).
All three needed a car to advance economically and improve their lives, but all lacked the credit history they needed to buy one without resorting to a high-cost or predatory lender.
Legal efforts to enforce Regulation Z generally come from one of two sources--enforcement actions undertaken by the Fed, or private actions undertaken by the individual victims of a predatory lender.
The predatory lender stalks consumers, seeking to seize their homes through high-cost, abusive lending practices.
HUD will continue to aggressively pursue any predatory lender.
In one survey of aspects of financial fitness in San Diego among our military members, 21 percent had used a predatory lender for a short-term loan, and 80 percent of those who did were in pay grades E-4 to E-6.
You can look at the increase in property values and see that elders who have equity in their home might be more vulnerable to a financial predator, such as a contractor, predatory lender or even a family member,'' said Jenefer Duane, chief executive officer of the San Francisco-based Elder Financial Protection Network.
While residential mortgage lenders are the most directly affected by predatory lending laws, other lenders who are engaged primarily in commercial lending, but from time to time take a home as additional collateral, may be vulnerable to being attacked as a predatory lender.