| y"> | | | | then the property in which you are financing? |
| With all the hidden agendas, secret rebates and | | | | 8. Did you incur any unexpected/unplanned costs at |
| undisclosed profit in the lending industry, it’s | | | | settlement that were not thoroughly discussed prior |
| difficult for a homebuyer or homeowner to know if | | | | to closing your mortgage loan? |
| they are being “led down the garden | | | | 9. Did you find that your mortgage payment was |
| path”. | | | | higher after closing then what was originally reflected |
| Predatory lending and mortgage fraud are joint | | | | in your original disclosures and estimates? |
| concerns for both the industry and the borrowing | | | | Bear in mind that just because you answered |
| public and this article is meant to assist the reader in | | | | “yes” to one or more of the above |
| identifying predator lending behavior in the hopes it | | | | questions, this doesn’t necessarily mean that |
| will help you avoid getting caught in this type of | | | | have a clear cut case of predatory lending---if you |
| arrangement. | | | | have answered “yes” to any of the |
| The 9 questions found below is a good test to see if | | | | above questions, you should seek guidance with your |
| you might be involved with a predatory lender | | | | local Banking Commission. |
| banker/mortgage broker: | | | | What You Can Do If You Think You Are A Victim |
| 1. Where you asked to lie on your loan application? | | | | 1.) If you are refinancing your mortgage loan, the 3 |
| 2. Where you asked to leave anything blank (like | | | | day rescission period will save you from accepting |
| income, asset and or signature sections)? | | | | any last minute changes. |
| 3. Did your lender/banker/mortgage broker change | | | | 2.) Write a formal complaint to your servicing lender. |
| anything on your loan application? | | | | 3.) File a complaint with HUD. |
| 4. Are you missing any of the following information: | | | | 4.) File a complaint with the governing body that |
| - Good Faith Estimate (known as a GFE) - Truth In | | | | regulates the predatory lender: |
| Lending Statement (known as a TIL) | | | | - For national banks, contact |
| - HUD-1 Settlement Book | | | | - For federally chartered banks and S&Ls, |
| - Special Information Booklet | | | | contact |
| 5. Have you refinanced your mortgage with the | | | | - For mortgage banking firms, contact |
| same lender and if so, have your mortgage | | | | 5.) File a complaint with your state’s attorney |
| payments gone up each time? | | | | general and/or Consumer Protection Division. |
| 6. Do the interest rate calculations on your loan | | | | “Buyer Beware” is advice that bodes |
| documentation reflect the need for you to pay a | | | | well in every situation that includes an exchange of |
| daily interest penalty in the event of late payment? | | | | money---you need to know the signs in order to |
| 7. Is the loan amount you requested worth more | | | | avoid being a victim of them. |