Question:

What action should be taken to achieve better results of curbing predatory home mortgage lending?

Answer:

To ensure higher level of curbing predatory home mortgage lending, HUD (the US department of Home and Urban Development) has agreed on and begun to implement an official program that is aimed at severely restricting and limiting some lenders' harmful intentions. These official steps are required in order to add legislation structure to the attempts to curb predatory mortgage lending.

This is to be achieved mainly through educating loan applicants about particular risks to consider with certain loan products, adopt mortgage and predatory lending counseling on a larger scale, and require that lenders reveal the mortgage specific costs and clauses earlier in the application process.

Other steps towards curbing predatory home mortgage lending is officially declaring it harmful and requiring lenders to submit a loan-appropriateness report, especially for high cost loans; the HUD task force for curbing predatory home mortgage lending also recommends that legislation is provided to better protect borrowers in the subprime market and balloon payments and prepayment penalties are further restricted. Also, a ban on lump-sum life insurance and similar popular products is considered.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
Was this Mortgage QnA helpful?
Not at all
  • Currently 2.9/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
Definitely
Add to this Answer

Mortgage QnA is not a common forum. We have special rules:

  • Post no questions here. To ask a question, click the Ask a Question link
  • We will not publish answers that include any form of advertising
  • Add your answer only if it will contrubute to the quality of this Mortgage QnA and help future readers
If you have trouble reading the code, click on the code itself to generate a new random code. Verification Code Above:
Bookmark and share this QnA: