Homeowners Getting In Over Their Heads
With Predatory Lenders On The Prowl

How to avoid predatory lenders and get a good home loan

Predatory lending is a broad term used by newspapers and the media to describe abusive lending practices. Predatory lenders only offer high interest loans with lots of junk fees tacked on, even though a homeowner or homebuyer may qualify for a better loan. High interest rates and unnecessary fees raise the loan amount and make it hard for borrowers to meet their monthly payments. This puts homeowners at risk of losing their home and the money they’ve put into it.

Recently, several state Attorney General’s sued Ameriquest, and won a $325 million settlement for consumers. This is the second largest predatory lending settlement. Ameriquest specializes in lending money to people with poor credit.

However, it isn’t just people with bad credit that fall victim to predatory loans. Any borrower can be a victim of predatory lending, even if they have good credit. A borrower won’t know if a lender is legitimate or predatory until they shop around. DCA encourages borrowers to get at least three quotes from legitimate banks, credit unions, loan brokers or other reputable lenders.

To find out more about predatory lending and learn how to get a good home loan, check out our new information page, Avoid Predatory Lenders and Get a Good Home Loan.

DCA staff are available to review loan documents before you sign. All of our services are available free of charge to Los Angeles County residents. For more information, call us at (800) 973-3370.