Many hard working American homeowners with good credit and who are current with their mortgage payments are unsuspected victims of predatory lending practices.
What is the common definition of predatory lending practices?
Predatory lending includes any unscrupulous actions carried out by a lender to entice, induce and assist a borrower in taking a loan that carries high fees, a high-interest rate, strips the borrower of equity or places the borrower in a lower credit rated loan to the benefit of the lender. In addition, if you don’t speak English and your loan documents are not in your native language (and the lender did not translate your entire loan documents at the closing), you are a victim of predatory lending.
In fact, in 2011, Bank of America paid $335 million to 200,000 African-American and Hispanic homeowners (borrowers) to resolve allegations of a widespread pattern of predatory lending. Bank of America was accused of steering hardworking homeowners with good and excellent credit profiles into subprime loans. Subprime loans generally carry costlier terms, such as prepayment penalties and significantly higher adjustable interest rates that increase suddenly after two or three years.
Wells Fargo’s hands weren’t much cleaner. They agreed to pay $175 million to settle allegations that they steered minority homeowners into subprime loans in 2012.
Judge Elizabeth Magner of the Eastern District of Louisiana ruled that Wells Fargo improperly overcharged a homeowner more than $24,000 in fees due to a problem in the automated system the bank use to account for his loan payments. Judge Magner awarded that homeowner $3.1 million in punitive damages. Victims of predatory
The U. S. Department of Justice announced a $25 billion settlement with JP Morgan Chase & Company, Citicorp Inc., Ally Financial Inc., Wells Fargo, and Bank of America in 2012. The settlement resolved claims that the aforementioned national lenders were involved in predatory lending practices.
Victims of predatory lending are entitled to one or more of the following types of relief:
❶ Substantially reduced mortgage payment
❷ Substantially reduce the principle balance
❸ Financial compensation from the lender
❹ In rare cases, mortgage forgiveness.
Could you or somebody you know be a victim of predatory lending?
Let one of our loan auditors provide you with a complementary mortgage loan audit to determine if you are a victim of predatory lending. If violations are discovered, we will send your case to one of the nation’s leading mortgage loan auditing companies.
We have assisted homeowners with obtaining mortgage forgiveness, principle balance reduction, and substantial reduction of the mortgage payment. We have also helped 100’s of homeowners get out of foreclosures.