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Watch Out For Lending Scams |
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Most mortgage companies are good lenders who want to help
you get the money you need. However, there are a few
unethical companies out there that might take advantage of
you. Protect yourself!
- Say no to door-to-door salesmen.
- Say no to deals that sound too good to be true – they
probably are.
- Say no to lenders or brokers who try to rush you or pressure
you – a good lender won’t be in a hurry.
- Say no to lenders or brokers who try to intimidate you – a
good lender is always happy to answer all of your questions
until you’re completely comfortable.
Specific unethical lending practices include:
- Equity stripping
– This is the practice of making a series
of loans specifically designed to take away a borrower’s
equity in his or her house, and eventually to foreclose and
take the house itself.
- Failure to make required disclosures
– Some unethical
lenders or brokers might try to hide unfavorable loan terms.
- Flipping
– This means frequently refinancing the loan so the
lender or broker can charge fees again and again without any
benefit to the borrower.
- Packing
– This means including hidden fees and expenses in a
loan.
If you think a lender or broker is doing anything unethical,
take your business elsewhere. If you think you have been
treated unfairly, contact your state consumer protection
office or the Federal Trade Commission's Consumer Response
Center. Call 1-877-FTC-HELP (382-4357) or write to: Consumer
Response Center, Federal Trade Commission, 600 Pennsylvania
Ave, NW, Washington, DC 20580. You can also file a complaint
through the Internet, using the online complaint form at
www.ftc.gov/ftc/complaint.htm
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