NewBuyer Weblog

What is Predatory Lending?

Posted by Elizabeth Dennis on January 19, 2010 | No Comments

A top-notch look at predatory lending. View a scenario that clearly demonstrates a predatory lending scheme where the lender targets the borrower’s need for money and the borrower’s ignorance. The borrower was approved for a loan although the lender knew chances were slim the borrower could repay it.

Learn those most commonly target by predatory lenders and how lenders select their victims. From the resource: “Over the past few years, predatory lending has become one of the biggest reasons for the increase in mortgage foreclosures. One reason for this is the increase in loans based on home-equity, not the borrower’s income.”

Source: SPOCH

Learn more about predatory lending at Newbuyer.com.