What exactly is Predatory Lending?
Lending and home loan origination techniques become “predatory” once the debtor is led in to a deal which is not whatever they expected.
Predatory lending practices may include loan providers, home loans, real estate agents, attorneys, and do it yourself contractors. Their schemes frequently target those who have little incomes but substantial equities in their houses.
Items on their own are perhaps not predatory. As an example, that loan with a adjustable rate of interest could be an extremely good financial device for all borrowers.
Nonetheless, in the event that debtor comes that loan having a adjustable interest disguised as home financing loan with a hard and fast rate of interest, the debtor may be the target of a bait and switch or predatory lending training.