Skip to main content

Bankrate Warns COVID-19 Breeding Predatory Lenders

Navi Persaud
May 12, 2020
Stop sign

The practice of predatory lending can often times rear its head during instances of crisis, such as the COVID-19 pandemic. Predatory lending is defined as any unfair practice that inhibits the borrower's ability to repay their loan and only benefits the lender. A new Bankrate report serves as a warning for borrowers and includes the signs to be wary of when taking out a mortgage.
 
Some of the signs including high interest rates, excessive fees, no credit checks and a bad reputation are the most obvious. However, the report cautions borrowers to look for hidden fees, prepayment penalties, balloon payments, loan packing, loan flipping, negative amortization and any lender who wants to access your bank account.
 
"Not only is COVID-19 shaking the global economy and the livelihoods of millions, it’s also creating a ripe environment for predatory lenders," the Bankrate piece reports. "They are targeting vulnerable individuals who are struggling to make mortgage payments or going into default. These lenders may offer low-cost loans to seemingly pull a consumer out of a financial hole, but actually digs them deeper, or loans with unfair rates and terms, knowing their victims can’t reasonably pay them back."
 
The report also stated that there are plenty of reputable lenders who are willing to get the best loans possible, without triggering one of the aforementioned warning signs.
 
Click here to read Bankrate's full report on predatory lending.

 
Published
May 12, 2020
PenFed CU Sees Record Annual Mortgage Lending Volume

PenFed Credit Union announced it's financial highlights from 2021 which includes record annual mortgage lending volume.

Industry News
Jan 21, 2022
Angel Oak Lending Platform Reveals Record-Setting 2021

Last year was a record-setting year for many companies in the mortgage lending space, especially for the Angel Oak lending platform that consists of Angel Oak Mortgage Solutions and Angel Oak Home Loans.

Non-QM
Jan 21, 2022
What Are The Biggest Deal-Breakers For Homebuyers?

The housing market is holding strong but that doesn't mean homebuyers don't have their fair share of deal-breakers when it comes to purchasing a home.

Analysis and Data
Jan 20, 2022
Popular Bank Names National Director Of Residential Lending

Popular Bank named Adam Dejak as its national director of residential lending for Popular Mortgage.

Industry News
Jan 20, 2022
Sagent Appoints Thompson As Chief Product Officer

Founder of fintech managment consulting firm Consigliera will lead and expand product development.

Industry News
Jan 20, 2022
Total Expert Appoints Gaydos As President

Former Talkdesk and SAP senior executive brings extensive cloud, go-to-market, sales, and operations experience.

Industry News
Jan 20, 2022