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

    … for Public Integrity did an in-depth examination of Clayton’s predatory practices last year as did the Seattle Times. The Center found one couple who were told to forego the husband’s medical payments after he was diagnosed with cancer and instead give the money to Clayton Homes. Beginning to see a pattern? The stories of the people who have approached us…

    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

    … with customers and employees. And other groups are pushing to place restrictions on arbitration clauses, while organizations, like the U.S. Chamber of Commerce, are fighting to block the efforts of the Consumer Financial Protection Bureau. Most of us have signed arbitration clauses without realizing we’ve done so. Amazon, Netflix, Travelocity, eBay…

    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 -