Predatory Mortgage Lending
Predatory lending refers to dishonest practices by mortgage companies, mortgage brokers, and even real estate and title agents. Predatory mortgage lending takes advantage of inexperienced and unknowledgeable homeowners seeking to borrow money to purchase or refinance a home. Many times these practices violate Florida and federal consumer protection laws, it is unethical, and it can sometimes be criminal.
What Are Common Predatory Lending Behaviors?
Common predatory mortgage lending behaviors include:
- Changing, or "baiting and switching" mortgages at the last minute
- Not disclosing certain mandatory terms in a mortgage or promissory note
- Inflating the value of a home artificially
- Not disclosing known defects in the home (such as sinkhole activity)
- Encouraging borrowers to lie on their applications or overstate income
- Assisting homeowners in applying for loans they cannot afford
- Accepting or charging excessive or illegal fees, or charging fees for work not done
- High pressure sales tactics
- Racial profiling and pushing minorities into sub-prime loans
Is Predatory Lending Legal?
Typically, no!
State and federal laws require mortgage companies and mortgage brokers to follow certain, specific and mandatory requirements when home loans are made. In the rush to make as many mortgage loans as possible, many times these requirements were not met!
Loan Origination Audits
To determine if your loan and your loan closing were done properly, or if you are perhaps a victim of an illegal predatory mortgage lending scheme, a loan audit is often useful. Loan audits can reveal areas of your loan that might be improper, illegal, or give you certain rights. Many people offer loan origination audits that range in price from hundreds to thousands of dollars - but without the proper training and experience to know what to do with the results of a loan audit, an unknowing homeowner might be wasting their money. If you are facing foreclosure, a loan audit may assist in your defense - but it is important to consult with experienced legal professionals, such as the experienced attorneys at the Byrne Law Group, to prepare a strategy to best use loan audit results. Call the Byrne Law Group today for a FREE consultation at 813-413-6565 today.
What Types Of Frauds Can Loan Audits Reveal?
Constructive Fraud
Material facts include the terms of the loan, whether there is a prepayment penalty, or any other information which a reasonable borrower would want to know before accepting the loan. Did the loan officer or lender fail to disclose any material facts to the borrower? Was the loan presented to you at closing materially different than what you had applied for?
Fraud And Negligent Misrepresentation
Were any representations, statements, or comments, written or oral made by the loan officer, broker, notary or anyone else which contradicts the terms of the documents?
Negligent Misrepresentation
When a mortgage professional makes errors which a reasonably diligent mortgage professional would not have made, he or she may have made a negligent misrepresentation.
Breach Of Contract
The note and its attachments are a contract. The lender must follow all the terms of the contract such as the way the interest is calculated, and the penalties it assesses. Were there any terms in the contract which the lender failed to follow?
Call For A Free Consultation Today!
To understand your rights, speak to an experienced attorney on how to avoid predatory lending scams at the Byrne Law Group for free right now by calling 813-413-6565! Get the facts. Protect yourself.