What is Predatory Lending
Predatory lending occurs when a mortgage broker, banker, loan originator, or loan facilitator intentionally places a consumer in a loan product whose terms, rates, and costs are significantly worse or significantly higher than that specific consumer could obtain elsewhere in the mortgage market. This is done to increase the compensation or financial gain of the mortgage broker, banker, or loan originator with no regard for the cost to the consumer. Homeowner123 provides consumers the knowledge they need to protect themselves against predatory lending.