What describes any lending practice that requires unfair or abusive loan terms to a borrower?
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What are unethical lending practices?Predatory lending is any lending practice that imposes unfair and abusive loan terms on borrowers, including high-interest rates, high fees, and terms that strip the borrower of equity. Predatory lenders often use aggressive sales tactics and deception to get borrowers to take out loans they can't afford.
What interest rate is predatory lending?What interest rate do predatory loans have? Many predatory loans have interest rates in the triple-digits. Payday lenders typically have a 391% APR. Personal finance experts cite 36% as the cap for affordable loans.
What is an example of discrimination in lending?Examples of Lending Discrimination
Providing a different customer service experience to mortgage applicants depending on their race, color, religion, sex (including gender identity and sexual orientation), familial status, national origin or disability.
What are the three main types of lending?The three main types of lenders are mortgage brokers (sometimes called "mortgage bankers"), direct lenders (typically banks and credit unions), and secondary market lenders (which include Fannie Mae and Freddie Mac).
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