Q&A: What makes a home loan a predatory loan?
Posted by | Posted in Buy My Home Fast - Questions & Answers | Posted on 30-05-2011-05-2008
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Question by MKD: What makes a home loan a predatory loan?
If you get a loan and the mortgage broker never asked for income verification, never asked for you to fill out a financial page such as expenses, other loans, etc. and you questioned him about that and said “Doesn’t matter they have investors” would you consider this predatory lending? He just asked for 2 year income tax (1year the business had a loss in profits) and a saw a good credit report. How about they sent the papers for you to sign and then had to mail them back? If this is predatory lending how do you go about taking action? Was told that they gave the loan based on good credit rating by someone in the real estate business. Only serious answers only please.
Best answer:
Answer by Steve D
The method of making the loan (signature, tax form verification of income, etc.) does not make the loan predatory. What makes the loan predatory is charging an unfair or injurious interest rate = especially to someone with no where else to turn. If you have good credit and your interest rate is say under 6%, there is nothing predatory about the loan you describe. If you are the borrower, the only person that could complain (assuming you get near a market interest rate) is the lender, who could accuse the broker of falsifying the loan records to get the approval.
As far as I can tell, if you are the borrower, no one twisted your arm nor were you given unfair terms or put under any duress during the process.
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