Predatory lending

What is Predatory lending?

Making unaffordable loans based on the assets of the borrower rather than the borrowers ability to repay, often with the intent to foreclose on the property. Inducing a borrower to refinance a loan repeatedly in order to charge high points and fees each time the loan is refinanced ("loan flipping"). Engaging in fraud or deception to conceal the true nature of the loan obligation from an unsuspecting or unsophisticated borrower.