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OVER 9 BILLION DOLLARS A YEAR IS LOST TO PREDATORY LENDING...MINORITIES
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Added: 01/02/2004
Type: Summary
Viewed: 926 time(s)
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OVER 9 BILLION DOLLARS A YEAR IS LOST TO PREDATORY LENDING...MINORITIES
The African American and Hispanic communities are subjected to being victims of Predatory Lending 4 times more often than the average white consumer. Surprisingly enough, affluent African Americans with “A” credit have twice the chance of being victimized than low-income white families.
Over 75% of white Americans own their own homes as opposed to 60% of minorities who are still non-homeowners due to various homeownership barriers as reported by HUD, The US Department of Housing and Urban Development (barriers for which FCLS has found direct resolutions). Of the 40% of minorities who own their homes, approximately 63% are in higher interest rate loans than necessary, losing over 9 billion dollars of equity every year as a result of rampant Predatory Lending practices.
Homeownership is the cornerstone of America’s healthy and vibrant families, and the real estate industry is a very vital part of the economy within the United States contributing well over 2 trillion dollars in 2002. .
Yet, as vital as the industry has been for many, it has taken food off the tables of hard working Americans, and has robbed their children of a chance at a college education.
Every year unscrupulous brokers and lenders defraud hard working Americans of over 9 billion dollars in hard earned equity. Unfortunately the door to homeownership is not open to all Americans.
The statistics have called on the president to challenge the Real Estate Industry, finance mortgage industry, the private sector, nonprofits and marketing companies to assist him in getting 5.5 million more minorities into home by 2010.
Fair Community Lending Service Inc., has taken America’s Homeownership challenge by opening just one door to homeownership – a door where everyone is treated with dignity and respect, regardless of race or age.
We are dedicated to BREAKING BARRIERS in homeownership and eliminating PREDATORY LENDING practices by opening the door to all Americans through EDUCATION, ACCESSIBILITY AND ACCOUNTABILITY.
When a consumer embarks on the homeownership process it is not an easy one. To successfully buy a home or refinance a loan, it is important to understand credit, the homeownership process, adjustable and fixed mortgages, what disclosures are due to the consumer, prepayment penalties, fees associated with the loan and whether they are receiving the best rate and program for your credit.
Once a client applies for a home loan with FCLS, the home buying process becomes as easy as 1 2 3. We are a full resource center that works to educate the consumer about the home buying process and Predatory Lending, provide accessibility to hundreds of fair lenders with thousands of loan programs totaling billions of dollars in available financing through our network of over 400 lenders, and we make sure that a “safeguard” is put into place to protect the consumer from Predatory Lending. We do this by making sure our brokers and lenders are accountable for each transaction by auditing all closed loans to ensure strict quality control. WE DO THIS ALL AT NO COST TO THE CONSUMER!
Customers can access our services, at no cost to them, toll free 24 hours a day seven days a week or log onto www.faircommunitylending.com for education and accessibility, both in English and Spanish. We are working on reaching a more diversified America, by launching our services in 4 different languages, to address cultural and language barriers that exist in homeownership, as reported by HUD.
All of our lenders and brokers must be licensed, have a clean record with their State governing body, such as the California Real Estate Board, disclose all required fees associated with a loan with a good faith estimate (3 days from the initial time of application), provide consumers with all necessary disclosures, cap financing fees to 3.5% (current California Law allows 6%), eliminate excessive junk fees, limit prepayment penalties to 2 years (must be disclosed and explained to the consumer), avoid financing credit insurance into the loan, fully disclose the terms of adjustable rate mortgage (mortgages where the rate changes on a yearly basis), avoid negatively amortized loans unless the consumer understands the guidelines of such a loan and the effect it will have on their equity and ensure the consumer is placed in the best program for their credit rating.
We will further affirm our commitment by re-investing back into the community by way of Down Payment assistance programs, Entrepreneurial Head Start programs, Books and Computers for schools and Scholarships to increase the number of minority real estate professionals through our community reinvestment initiative. To help us with our initiative we have partnered up with World Unity to promote racial tolerance in these unsettled times, by selling the UNITY RIBBON. Our hope is to spread the word of Unity through peace and help put 100 families into homes every year by selling 1,000,000 ribbons a year to raise money for down payment and closing cost assistance.
June of 2004, will mark The First Annual Homeownership Fair in Los Angeles and will bring hundreds of lenders, brokers, Real Estate companies, Government Agencies, Nonprofits to educate and provide accessibility to thousands of people all under one roof. We are looking for media sponsors please contact Lynn@faircommunitylending.com for more information on the Fair and other cross marketing opportunities.
PREDATORY LENDING OVERVIEW
Predatory Lending practices can range from equity stripping due to excessive fees, unnecessary and often undisclosed prepayment penalties, financed credit insurance, rate disparities (charging a consumer a higher interest rate than they qualify for), adjustable mortgage programs (programs where the interest rate is not fixed for a long period of time causing the loan to become unaffordable to the average consumer), as well as the illegal act of churning, (refinancing a loan several times within a short period of time by convincing a borrower it benefits them while it eats at their equity over and over). This is an act that often takes place with members of the senior community.
Subprime loans, (loans offered to at risk consumers); have grown 1,000% in the past 5 years. Although Sub prime lending has helped many Americans, it has also fueled and continues to fuel Predatory Lending practices due to the lack of regulations that exist in the subprime market. Predatory Lending also affects minorities and the senior community with “A” paper or excellent credit.
For In Depth Information On Predatory Lending or Enclosed Information
CONTACT
Lynn Davis, Vice President – 310-258-9818
Or Lynn@FairCommunityLending.com
www.faircommunitylending.com
HELP US HELP MORE AMERICANS ATTAIN THE AMERICAN DREAM!
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