Federal Agencies Publish Consumer Brochure on Predatory Lending

The federal Interagency Task Force on Fair Lending has published a new brochure that alerts consumers to potential borrowing pitfalls, including high-cost home loans, and provides tips for getting the best financing deal possible. The brochure, Putting Your Home on the Loan Line Is Risky Business, warns that regardless of whether a home equity loan is for a home repair, bill consolidation, or some other purpose, it is important to shop around.

Borrowing from an unscrupulous lender, especially one that offers a high-cost loan using the home as security, could result in the loss of the borrower's home and money. The brochure cautions that certain lenders--often called "predatory lenders"--target homeowners with low incomes of credit problems, including the elderly, by deceiving them about loan terms or giving them loans they …

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Publication information: Article title: Federal Agencies Publish Consumer Brochure on Predatory Lending. Contributors: Not available. Journal title: Federal Reserve Bulletin. Volume: 89. Issue: 11 Publication date: November 2003. Page number: 465+. © 1999 Board of Governors of the Federal Reserve System. COPYRIGHT 2003 Gale Group.

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