PREDATORY LENDING: A CANCER ON THE AMERICAN DREAM OF HOME OWNERSHIP The issue of predatory lending is an important nationwide issue The Housing Advocates, Inc. provides legal assistance to low and moderate income residents to prevent predatory lending activities and other consumer fraud problems through education, negotiation and litigation. Don't get tricked by the fine print! Don't let predatory lenders sell you a loan with terms you do not want! Don't risk losing your home! Some lenders have ways to trick you into accepting terms that will harm you and benefit them. Watch out for: - Loans sold over the phone, door-to-door, or by direct mail - Loans targeted to senior citizens - High Interest Rates (above 13%) - Excessive, or extra charges at the time of the loan ("points" or "fees") - A lender who requires you to get specific credit, life, accident or unemployment insurance to qualify for the loan - Monthly payments that are too high for your budget - A loan with low payments which leave you owing more and more money, not less - A balloon payment you will not be able to afford - Refinancing your loan again . . . and again . . . - Prepayment penalties - A contractor who arranges your loan for you. Who is watching out for you? - A lender who tells you your credit is bad and you must pay high interest when your credit is actually good - A company pretending to be loaning you money but actually charging you just to arrange a loan which you could get directly - A lender or broker who does not provide you with "disclosure forms" or provides them at the last minute. You deserve time to review them. If you believe that you have been a victim of predatory lending, please CONTACT us and/or report it to us by submitting THIS PREDATORY LENDING QUESTIONNAIRE. If we can't help you, we can tell you who to contact. When violations of the law are reported to HAI or evidence of predatory lending is uncovered through its review of cases in the SOHF program, they are referred to private attorneys or to the Fair Housing Law Clinic. The Clinic is a joint venture between The Housing Advocates, Inc. and Cleveland State University, Cleveland Marshall College of Law where second and third year law students have an opportunity to do real life cases and to get experience outside the classroom.
The Human misery is enormous when the American dream becomes a nightmare. For example, one of HAI's clients, a female minister, was victimized by a predatory lending scheme. She cried as she described how stupid and violated she felt by being deceived by men who trusted in her good nature and in the complicated nature of the paperwork to let them get past the three day rescission period until she was locked into this toxic loan. The victim was not stupid--she was robbed. She was robbed in a way that thieves in a dark alley couldn't do with a gun: She was robbed of the equity in her home. We are pleased to report that this case was settled successfully and her home is safe with a refinanced mortgage. And HAI's attorneys, including Diane Citrino, former Senior Staff attorney, broke new legal ground with the legal theories we were using involving the fair housing law and predatory lending. This case has been cited by a number of recent federal decisions to support new litigation against these predatory lenders. |
