Predatory Lending

Predatory lending is the unfair, deceptive, or fraudulent practices of some lenders during the loan origination process. While there are no legal definitions in the United States for predatory lending, an audit report on predatory lending from the office of inspector general of the FDIC broadly defines predatory lending as "imposing unfair and abusive loan terms on borrowers." Though there are laws against many of the specific practices commonly identified as predatory, various federal agencies use the phrase as a catch-all term for many specific illegal activities in the loan industry.
Posts about Predatory Lending
  • INVESTIGATION: Clayton Homes, Vanderbilt Mortgage, 21st Mortgage

    … Clayton Homes… by far the biggest player in the mobile home industry. Along with Vanderbilt Mortgage and 21st Mortgage and 25+ other companies, the Clayton Home empire is huge. And it just may be the most predatory mobile home seller and lender in the nation. Clayton Homes was purchased by billionaire Warren Buffett’s Berkshire Hathaway in 2003…

    Due Diligence- 18 readers -
  • ATTN Clayton Homes, Vanderbilt Mortgage Insiders!

    … Homes has become the largest mobile home company in the United States. Now, four Congress members, consumer advocates and the Center for Public Integrity are concerned that the giant conglomerate is guilty of predatory lending and other illegal behaviors. A Seattle Times investigative report last year said that instead of providing low income…

    Due Diligence- 36 readers -
  • Forced Arbitration: Corporate Power Over the People

    …. . . . By banning class actions, companies have essentially disabled consumer challenges to practices like predatory lending, wage theft and discrimination, court records show.” Arbitration is stacked in favor of the big guy-the corporation, the doctor, or the employer. “Private judging is an oxymoron,” Anthony Kline, a California appeals court judge, said…

    Greg Webb/ MichieHamlett- 10 readers -
  • Appraisal Fraud Leads to $54 Million Whistleblower Award

    … The billion dollar whistleblower cases from the 2007 – 2008 housing bust have pretty much run their course. There may be a few more in the pipeline but the time to file new claims (“statute of limitations”) from that era is exhausted. Most of those claims centered on shoddy lending practices; poor documentation, predatory lending practices…

    Due Diligence- 16 readers -
  • Bank of America and HSBC – “Source of Shame”

    … biggest bank and America’s second largest bank, the two institutions control almost $5 trillion in assets… $5,000,000,000,000.00. Every few weeks we read a new scandal, which is immediately followed by well intended but hollow promises to do better. Many of the homeowners I talk to who have lost their homes to predatory lending and predatory foreclosure…

    Due Diligence- 35 readers -