Wednesday, February 04, 2009

Beware of Predatory Lenders

According to the Daily News two mortgage companies, Consumer One Mortgage and HCI Mortgage have been found guilty of overcharging African Americans and Latino mortgage loan applicants versus similar Caucasian applicants. Both companies were ordered to pay $665,000 in payments to 445 African American and Latino borrowers.

The Housing and Urban Development has charged: a New York City cooperative and Mississippi Regional Housing Authority with discrimination against disabled persons, various landlords in Alabama wrongfully evicting Caucasian tenants, the Wayne County Housing Authority for housing discrimination against African Americans, and landlords in New Mexico for evicting a couple expecting a baby because the woman became pregnant after moving into the apartment. These are just a few of the thousands of incidents that occur each year against African Americans and Latino mortgage applications and homeowners.

The Fair Housing Act (Title VIII of the Civil Rights Act of 1968) prohibits discrimination in the sale, rental, and financing of dwellings, and in other housing related transactions, based on race, color, national origin, religion, sex, familial status (including children under the age of 18 living with parents or legal custodians, pregnant women, and people securing custody of children under the age of 18), and handicap (disability).

When you are considering buying a home follow these 8 tips to prevent being a victim of predatory lending and discrimination:
1. Do you research before applying for a mortgage loan
2. Shop around to several lenders before making a selection
3. Ask questions if you don't understand something
4. Take the paperwork home and read it over, contact a real estate lawyer or law school student to help explain any legal terms and information you don't understand
5. Make sure all of your questions regarding the loan are answered
6. Make sure you are comforable with the terms provided
7. If the terms keep changing find another lender to do business with
8. When all else fails go with your gut instinct, if it seems too good to be true it probably is

Also refer to the Housing and Urban Development Fair Housing website for more information on predatory lending and how to protect yourself or file a complaint.

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