What is predatory lending?

Predatory lending is the practice of preying on, or taking advantage of, an individual or group of people that may have a difficult time buying or refinancing a home such as people who may be poor, uneducated, elderly, or in a protected class. Under the Fair Housing Act, a protected class is a group of people who share common characteristics and are protected from discrimination on the basis of race, religion, national origin, color, disability, familial status, and gender.

How do I know if I've been a victim?

Sometimes it's hard to know you've been a victim of predatory lending. The following videos provide an example of a bad lending experience (i.e. predatory lending) and what a good lending experience should be...click to watch and learn.

Example of Predatory Lending

[video:http://www.youtube.com/v/OLtMtxIzo8s width:425 height:355 align:center]

Example of Good Lending

[video:http://www.youtube.com/v/1NTkVkGoQ0Q width:425 height:355 align:center]

The work that provided the basis for this publication was supported by funding under a grant with the U.S. Department of Housing and Urban Development. The substance and findings of the work are dedicated to the public. The author and publisher are solely responsible for the accuracy of the statements and interpretations contained in this publication. Such interpretations do not necessarily reflect the views of the federal government.

What other information and resources do you have available?

• Fair Housing Advice

• 12 Tips to Help You be a Smarter Housing Consumer

• LEP Fair Housing Newsletter 2007

• Other Housing Resources

FHA funds housing counseling agencies throughout the country who can provide information on reverse mortgages.

The Lender List page allows you to lookup lenders using various selection criteria.

If you’re 62 or older and looking for money to finance a home improvement, pay off your current mortgage, supplement your retirement income, or pay for healthcare expenses, you may be considering a reverse mortgage. It’s a product that allows you to convert part of the equity in your home into cash without having to sell your home or take on additional monthly bills...

Reverse Mortgage Education Project - Financial strategies for low-income seniors in tough economic times.

The Consumer Financial Protection Bureau created a "Shopping for Your Home Loan" guide for persons looking to buy home. This guide includes tips and advice before you purchase a home or settle on a home loan company.

Reverse mortgages are becoming popular in America. HUD's Federal Housing Administration (FHA) created one of the first. The Home Equity Conversion Mortgage (HECM) is FHA's reverse mortgage program which enables you to withdraw some of the equity in your home. The HECM is a safe plan that can give older Americans greater financial security. Many seniors use it to supplement social security, meet unexpected medical expenses, make home improvements and more. You can receive free information about reverse mortgages in general by calling AARP toll free at (800) 209-8085. Since your home is probably your largest single investment, it's smart to know more about reverse mortgages, and decide if one is right for you!

Are you considering a reverse mortgage? Better look before you leap. While a reverse mortgage could put money in your hands, the transaction is likely to be quite confusing. A reverse mortgage deal could also put a lot of your money in someone else’s pocket. Still, if you are a senior and a home owner and short of cash to make ends meet, a reverse mortgage can be a lifesaver. That’s because a reverse mortgage taps your home equity – that’s the market value of your house minus the outstanding balance on any existing mortgages – for cash.