In November 2005, Montgomery County, Maryland's county council enacted legislation to expand the categories of discriminatory lending activities associated with discriminatory housing practices and increased the maximum fine for such activities from $5,000 to $500,000. The council sited practices such as charging inordinate amounts for prepayment penalties, points, and fees; steering borrowers toward more expensive mortgages; and refinancing existing mortgages with new ones that borrowers will not be able to pay on the basis of income or credit card.
Predatory lenders typically target what they call the lower-quality mortgage market, where people seek stained with their credit history to borrow money for homes in neighborhoods less attractive, which means that it is often minorities such as African-Americans and Hispanics, the victims of predatory lending practices.
However, in February 2006, the American Financial Services Association (AFSA), the decision stood,the argument that only the state has adopted the power law on mortgage obligations - even if the agency did not go, the more challenging unfair and discriminatory lending practices. The new law come into force should be in the second week of March, but the mortgagee lawyers persuaded a judge to delay the new law, up to a hearing. And "yet to be decided whether the law in Montgomery County will remain in the books.
Regardless of the outcome of the Montgomery County, butpredatory lending practices are illegal in most states. The Center for Responsible Lending describes a number of these practices on its website. Some of them include loans mirrors in which the borrower a loan, often repeated, and refinance for the sole purpose of generating new fees for the bank. Another common practice is that borrowers purchase also emphasized things like life insurance, credit or other products - again, primarilygenerate more revenue for the creditors.
The end result is that banks are not a lot of money by levying additional charges for borrowers who can least afford it, the borrower or the American dream, ownership would be housing, or worse, by a possible exclusion.
As the slowing property market and rising interest rates, is more important than ever to an informed consumer. Learning the BasicsMortgage, so you know, if you are not too many things on a loan or required. Take a look around to see what is available, make sure that you are comfortable with the payment of the loan because the amount you must pay for many years.
Copyright © 2006 Jeanette J. Fisher
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