|
|
 Being
aware of predatory lendors may save you money.
Bad credit
may make you a target of high interest rates and loans with abusive
terms when buying a home.
 Fair
lending -- fairly priced financing -- contributes to more affordable
high quality housing and enhances the overall value of communities.
|
Predatory lenders lend at extremely
high interest rates and load up loans with abusive terms and conditions
that are not necessary to cover the added risk of lending to borrowers
with impaired credit.
A segment of subprime and manufactured home lenders
are predatory lenders.
subprime lenders make loans at interest
rates that are higher than the rates widely advertised by traditional,
prime lenders. The higher interest rates compensate subprime lenders for
lending to borrowers with less than perfect credit.
manufactured home lenders make relatively
high interest rate loans to borrowers purchasing mobile homes or prefabricated
homes.
-from the executive summary of the "RHI
Report on CRA and Fair Lending in Iowa."
|
|
Download PDF:
"Rural
Housing Institute Report on Fair Lending in Iowa. "
-Prepared by the National Community Reinvestment Coalition
& Fairness In Rural Lending.
[+About-PDF]
~~~~~~~~~~
"Study
Finds Dramatic Increase in Subprime Home Lending." ... "What
fair-lending advocates are fighting are “predatory loans,” those in which
the costs are higher than they should be for the credit risk. Predatory
loans are characterized by features such as high interest rates (typically
more than four points above the current prime rate), pre-payment penalties,
and balloon payments (when the remainder of the loan is due at once, usually
within 15 years). Predatory loans also include situations in which people
with good credit get loans with interest rates higher than the current
average mortgage rate. Not all subprime loans are predatory, but most predatory
loans take place in the subprime market."
-Story by Jeff Ignatius -RiverCities'
Reader [RCReader.com] |
