Predatory Lending is any practice in which lenders have committed fraud or mislead a borrower into risky or unfair loan terms. Unfortunately, many first-time homebuyers, non-native English speakers and minority homeowners fall victim to these unscrupulous practices. Predatory lending can contribute to high rates of foreclosure and loss of equity. Other mortgage brokers have committed fraud by inputting loan information into their database before it was signed by the borrower.
For some prospective homebuyers, if your loan meets certain criteria, you may be required to receive housing counseling to ensure that you, as a new homeowner, understand all the terms of the mortgage. Our SCH counselors help prevent homeowners from entering into risky mortgages and putting themselves in danger of future foreclosure. It is the responsibility of your mortgage company to pay any associated fees.
If you suspect your mortgage broker of fraudulent activity, feel you were the victim of discrimination, exploitation, or would like to find out more about how to avoid predatory lending, you can speak with one of SCH’s HUD certified housing counselors at one of our offices: Contact SCH.