SUBMITTED: Wednesday, November 01, 2006
POSTED: Wednesday, November 01, 2006
Yes, I use to work as a Sr. Loan Officer for Centex Home Equity. They are a prime example of a predatory lender. This is a practice of convincing borrowers to agree to unfair and abusive loan terms.Although predatory industries in general are more likely to target racial minorities, women, and the elderly,[citation needed] victims of predatory lending are represented across all demographics.
Predatory lending normally occurs on loans backed by some kind of collateral, such as a car or house, so that if the borrower defaults on payment, the lender can profit by selling the repossessed or foreclosed property. Other types of lending sometimes also referred to as predatory include payday loans, credit cards, and overdraft loans, when the interest rates are considered unreasonably high.
There are many lending practices which have been called abusive and labeled with the term "predatory lending." There is a great deal of dispute between lenders and consumer groups as to what exactly constitutes "unfair" or "predatory" practices, but the following are sometimes cited.
Also they hire loan officers with no mortgage experince to teach them there way the "predatory lending way"