Understanding Predatory Lending
Whether you are a homeowner or shopping for a home loan, it is important to be aware of predatory lending and watch for red flags. While there is no simple definition of predatory lending, broadly speaking it is any lending practice that imposes unfair or abusive loan terms on a borrower.
Think of it as any practice that convinces a borrower to accept unfair terms through deceptive, coercive, exploitative or unscrupulous actions for a loan that a borrower doesn’t need, doesn’t want or can’t afford. The following are some possible red flags:
Alaska Housing Finance Corporation offers no-cost homebuyer education to the public. Learn about the different types of financing to make the best decision to fit your home purchase. Learn more and sign up today!
additional resources and reporting agencies
- Housing counseling agencies approved by the U.S. Department of Housing and Urban Development. Click here to learn more or call their interactive voice system at (800) 569-4287.
- Alaska Legal Services Corporation
- The Consumer Financial Protection Bureau
- The Federal Bureau of Investigation's Internet Crime Complaint Center
- The Federal Trade Commission. Click here to learn more or call (800) 382-4357.