What predatory lending legislation consists of?Answer:
Predatory lending legislation varies from state to state. However, there are certain features of curbing predatory lending legislation to strengthen enforcement of the law in regard to predatory lending legislation.
Predatory Lending Legislation Features
High cost mortgages are defined as having APR exceeding Treasury securities by certain number of percentage points; prepayment penalties are limited and balloon payments forbidden in a number of cases.
The upfront payment of financing credit and employment insurance is prohibited. Lenders are required to take responsibility assessing the borrower's capacity to repay the loan.
Other predatory lending legislation measures include required additional disclosure of the total cost of the loan; the amount of points and fees financed by the creditor is limited; certain lenders are banned from financing prepayment penalties and fees due from the consumer.
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