Archive for the ‘Home Loan Questions’ Category

What can be done about predatory lending practices in the student loan industry?

I know that this blog is about upside down mortgage but I am seeking advice on predatory lending. I see that there are some posts and suggestions about predatory lending so I'm giving it a try. I'm a student with large student loans.

More and more students are graduating with loads of debt from "private lenders" (for examples Sallie Mae, Wells Fargo, Xpress Loans) who make loan terms unclear, and repayment plans ambiguous. These loans can rarely be consolidated, have high interest rates, are non-dischargeable in bankruptcy, and have very high payments.

(Predatory Lending Practices and Student Loans)

Congress is realizing that something must be done to alleviate the burden on the students that fell victim to these lending practices by the banks. What remedies do you think should be allotted these students? How do we fix problems within private lending so students can pay their loans while still maintaining a decent quality of life?

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Predatory Lending New York

Question: Does Clinton want his Treasury Secretary Rob Rubin to go to Jail for Predatory Lending in SubPrime Mortgages?

Democrat Senator Schumer of New York said he would like to figuratively "boil in hot oil" the chairman of Country Wide Credit, a large subprime mortgage lender, for what Schumer views as predatory lending to middle and lower class Americans.

Would Bill and Hillary Clinton like to see their friend and former treasury secretary, Rob Rubin, go to jail for predatory lending?

Rubin has been a big wig and CEO of Citicorp, a very large sub-prime lender.

Answer: Angelo Mozilo is the CEO of Country Wide under investigation...

Student Loan Hearing: New York Attorney General Cuomo

Many people feel like they are victims of some kind of mortgage frauds, schemes or predatory lending practices. Many people with upside down mortgages are victims of predatory lending or mortgage frauds. But, what exactly is the definition of  predatory lending? And, if you think that you are a victim of a predatory lending practice, what can you do about it?

Defining Predatory Lending

(What is Predatory Lending)

Predatory lending is a term used to describe lending practices that are:

• unfair,
• deceptive, or
• fraudulent

Usually predatory lending practices are practices by some lenders during the loan origination process to take advantage of borrowers.

Victims of Predatory Lending Practices

There are many victims of predatory lending practices everywhere. A lender usually deceptively convinces borrowers to agree to unfair and abusive loan terms. The terms are not good for borrowers but the lender deceptively makes it look as if they are good or acceptable. Predatory lenders are most likely to target the less educated, racial minorities and the elderly folks who are easily convinced that bad things are good. However, victims of predatory lending are everywhere, in every state and in every country.

Examples of Predatory Lending

Some types of lending that are sometimes referred to as predatory lending include:

• payday loans,
• credit cards with unreasonably high interest rates or
• other forms of consumer debt with unreasonably high interest rates, and
• overdraft loans when the interest rates are considered unreasonably high.

What is predatory lending in the United States?

There are no legal definitions in the United States for predatory lending, though there are laws against many of the specific practices commonly identified as predatory, and various federal agencies use the term as a catch-all term for many specific illegal activities in the loan industry.

Differences between Predatory Lending and Predatory Mortgage Servicing

Predatory lending is not to be confused with predatory mortgage servicing (predatory servicing). Predatory mortgage servicing is used to describe the:

• unfair,
• deceptive, or
• fraudulent practices

of lenders and servicing agents during the loan or mortgage servicing process, post origination.