Rep. Coffey supports (HB2094) that protects homeowners from deceptive mortgage marketing practices. This bill cracks down on bad actors who take advantage of unsuspecting homeowners, specifically those new to the home buying process and seniors who might be more vulnerable to deceptive marketing tactics. Here is an example:
Predatory Lending and Deceptive Mortgage Practices
Predatory lending is a practice which creates a loan that a borrower does not need, want, or can not afford. This type of lending is deceptive and manipulates the borrower through aggressive sales tactics. Furthermore, it takes advantage of the borrower’s lack of understanding about loan terms and conditions. Fraudulent lenders typically target low income, minority, and senior consumers who likely have poor credit and limited access to traditional lines of credit.
To protect yourself from deceptive mortgage lenders, watch out for these red flags:
- False or misleading promises
- Excessive fees
- High or adjustable interest rates
- End-of-loan features
- “Interest only” loans
- Excessive loan amounts
- Repeated refinancing or unnecessary refinancing
- Lenders who encourage you to misstate information
Federal Trade Commission Consumer Advice: consumer.ftc.gov/credit-loans-and-debt/loans-and-mortgages
How to protect yourself from identity theft: repcoffey.com/2023/06/06/scams-and-identity-theft-protection-guidance/