The department of Housing and Urban Development (HUD) offers a brochure designed to educate consumers about ways to avoid becoming a victim of predatory lending scams. The brochure, entitled "Do Not Be a Victim of Loan Fraud---Protect Yourself from Predatory Lenders," ia available in both English and Spanish.
Each year thousands of elderly, minority, and low-income homeowners are the primary targets for predatory lenders. Many asset-rich, cash-poor homeowners are on limited or fixed income, and unscrupulous lenders use an array of practices to strip the equity from the home of the borrower. This easy-to-read pamphlet describes different forms of predatory lending (e.g. false appraisals, steep pre-payment penalties, and unneccessary or non existent products), and the tactics commonly used by predatory lenders, such as high pressure sales tactics or manipulation of contracts.
The brochure, prepared hy HUD, is geared to all homebuyers. It is available at the HUD website: www.hud.gov/offices/hsg/sfh/buying/loanfraud.cfm, or by calling their Direct Distribution Center at (800) 767-7468. Consider sharing this information with clients you feel may be susceptible to predatory lending scams.
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