Regarding Predatory Lending On FHA Loans
Rob Lawrence, Chief Mortgage
Warrior Of mortgagebattlecall.com
This explanation of what predatory lending is and what the
law says is taken straight from a HUD web site. You'll find the phone numbers to
call if you need help in this area.
DIRECT FROM HUD
Over the last several years, our nation has made enormous
progress in expanding access to capital for previously under served borrowers.
Despite this progress, however, too many families are suffering today because of
a growing incidence of abusive practices in a segment of the mortgage lending
market. Predatory mortgage lending practices strip borrowers of home equity and
threaten families with foreclosure, destabilizing the very communities that are
beginning to enjoy the fruits of our nation's economic success.
Since the Spring of 1999, HUD has been actively involved in
combating predatory lending through research, regulation, consumer education and
enforcement actions against lenders, appraisers, real estate brokers, and other
companies and individuals that have victimized homebuyers. Access HUD's research
and other reports on predatory lending.
If you believe you have been a victim of predatory lending
practices there are Federal agencies that can help. Please refer to the list of
agencies below and contact the organization or agency that you think can help
address your specific problem.
Protect yourself from predatory lenders. For information
about loan fraud and advice about preventing it, see Don't Be A Victim of Loan
Fraud.
Local information on predatory lending. Here are some Local
Resources by state, that can help you avoid being a victim of predatory lending.
For FHA loans. For problems relating to origination,
underwriting, or appraisals contact the FHA Resource Center at (800) 225-5342
(800-CALLFHA).
Avoiding foreclosure on an FHA loan. Visit the HUD National
Servicing Center web page or contact them toll-free at (888)
297-8685.
Non-FHA mortgage loans. For complaints concerning practices
which include disclosure of interest rates and finance charges (APR), prepayment
penalties, credit life insurance, fraud, deception, etc. contact the appropriate
agency from this list to complain about the mortgage lender or mortgage
broker. Lender threatening to foreclose or mortgage
in default. HUD funds housing counseling agencies throughout the country. To
find a housing counseling agency near you, call toll-free (800) 569-4287
immediately for free guidance or visit the web page.
Settlement Procedures (FHA and non-FHA mortgages). Visit the
RESPA web page for information on RESPA disclosure requirements such as the Good
Faith Estimate, HUD-1 and escrow account statements, and how to file a complaint
with your lender concerning the servicing of your loan.
If you are still unsure who can best help you, please let us
know.
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