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.
References in periodicals archive ?
The police have no leads, but April believes the predatory lender is behind it.
The problem with this interpretation is that the Greedy, Predatory Lender explanation cannot explain the foreclosure rate for prime mortgages (Liebowitz, 2009).
HUD will continue to aggressively pursue any predatory lender.
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.
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.
The predatory lender offers a "loan to get caught up" on the delinquent mortgage payments.
New York City also would refrain from engaging in business with or investing any city funds in the stocks, securities or other obligations of any financial institution that is a predatory lender or an affiliate of a predatory lender.
No amount of additional legislation will prevent a predatory lender, driven by greed, from taking advantage of a borrower.