Predatory lending practices may be contributing to the increases in mortgage foreclosures seen across the country. A recent survey of mortgage lenders shows that many homeowners are borrowing several times more than their annual income or using interest only mortgage loans with payments that balloon up after a few years. Mortgage brokers and home appraisers that profit from risky loans on a commission basis regardless of whether or not these loans default are setting homeowners up for foreclosure. Comprehensive mortgage reform is a hot topic in several states right now; however, some feel the steps being taken are too little too late. Many predatory lending laws on the books today fail to address mortgage brokers and a loophole in the records laws hides broker complaint files from the public. How do you choose a reputable broker? Do you homework when shopping for a mortgage lender or a mortgage broker.
To learn how you can protect yourself from predatory lending practices sign up for our mortgage guide.
My name is Robert Regehr and I’m a personal finance blogger with a chip on my shoulder for banks and mortgage brokers that take advantage of my friends and neighbors.
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