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Wednesday, May 19, 2010

Signs of Predatory Lending

Signs of Predatory Lending

• Excessive fees
• Prepayment penalties
• Inflated interest rates from brokers (yield-spread premiums)
• Steering and targeting
• Adjustable interest rates that “explode”
• Promises to fix problems with future refinances
• Not counting taxes and insurance
• Repeated refinances that drain your resources

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