Serving Clients Throughout Orange County and Los Angeles County
When the nation’s fairly recent housing crisis entered the scene
and affected the lives of millions of Americans, it was revealed that
large banks and sub prime lenders had regularly engaged in predatory lending
schemes, exploiting vulnerable home buyers and homeowners in struggling
communities and steeping them in impossible debt. Today, predatory lenders,
brokers, appraisers, and other individuals in the industry are being scrutinized
and held accountable for their actions. If you have fallen victim to predatory
lending schemes, get in touch with an experienced southern California
real estate lawyer right away. Now is the best time to get the justice you seek.
McFarlin LLP is a
renowned real estate litigation law firm with a highly knowledgeable and resourceful legal staff. We have helped
countless homeowners in Orange County assert their rights against predatory
lenders and other parties. While we possess the exceptional legal skill
that is required of any quality firm, we also value personal relations
with clients, always making sure to maintain open communication and honesty
in any case.
If you want an attorney who will always let you know where you stand, look
no further and call us today at
What is Considered Predatory Lending in California?
The Federal Deposit Insurance Corporation (FDIC) states that predatory lending typically consists of unfair and abusive
loan terms, aggressive sales tactics, exploitation of the borrower’s
ignorance of complex transactions, and sometimes even blatant deception.
In short, predatory lending is when the lender knowingly enforces unreasonable
loan terms to maximize his or her potential earning capacity with complete
disregard for the borrower’s ability to repay the loan. In many
cases, the lender targets households based on race, ethnicity, age, and/or
gender, which is discriminatory, and ultimately, illegal.
The Two Most Common Predatory Lending Schemes
While a predatory lending scheme can take on many variations, incorporating
deception at many different levels, exploitative lenders generally turn
to the following common illegal practices:
Discriminatory Targeted Marketing: This is when predatory lenders use public information to identify vulnerable
individuals who would be more likely to fall victim to their schemes.
Popular targets include the uneducated and the elderly. Although marketing
in itself is not illegal, it becomes so when utilized in an exploitative
manner. After successfully engaging their targets, predatory lenders usually
omit important information regarding the terms of the loan and lead borrowers
away from more viable options and towards more lucrative ones (for the
lender, of course).
Abusive Loan Terms: These include terms which are conducive to excessively high interest
rates and/or fees, such as unnecessary balloon payments, large prepayment
penalties, unwarranted loan approvals, and large upfront fees in general.
Such terms almost guarantee foreclosure proceedings, during which the
borrower can be further abused through foreclosure fraud.
If you believe you have been the victim of any of the above,
consult with an attorney immediately to determine whether you have a viable predatory lending scheme lawsuit.