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

Don't Borrow Trouble® is made possible by Freddie Mac.