A4: Predatory Lending
Reduce predatory lending through reform, education, and enforcement. Other Information:
Predatory lending involves deception or fraud by creditors, mortgage brokers, or even home improvement contractors. Unscrupulous
businesses manipulate borrowers through aggressive sales tactics or take unfair advantage of their lack of understanding of
loan terms. Predatory lending is harmful not only to the consumer, but also harms the economic vitality of the community at
large. Most often, those who are affected most severely are minorities, low income families, and the elderly. Under this strategic
objective, HUD is committed to eliminating practices that permit predatory lending, working with other federal and state agencies,
and vigorously enforcing RESPA rules that make the real estate settlement process more transparent and prohibit the payment
of kickbacks and referral fees. HUD also is taking steps to strengthen education of potential homebuyers so they can recognize
malicious practices.
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