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What Is Predatory Lending? Predatory lending is: --Taking advantage of consumers who want to buy a house, refinance or get a home equity loan --Charging excessive fees and commissions --Charging high interest rates --Misrepresenting terms and conditions --Stripping consumer's equity --Adding no value to customer Sub prime lending: --Provides credit to borrowers with past credit problems --Higher cost than conventional mortgage loans because of added risk --Unethical and predatory when given to borrowers with good credit that could qualify for conventional loans |
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