Reports by Consumers

Sub-prime lendors sometimes target financially strapped home owners for predatory mortgage refinancing, a practice in which homeowners are pressured to refinance their mortgage with a loan that has excessive points, fees, penalties of interest rates. Most mortgage brokers do not use these tactics. For those who do, certain states have begun to take action.

Joining a growing number of states in the battle against predatory mortgage lending, Massachusetts enacted a strong anti-predatory lending law earlier this week. The new law passed with overwhelming bipartisan support and with the endorsement of both mortgage industry trade groups and consumer and civil rights advocates.

Among the law’s significant provisions:

Triggers strong consumer protections for loans with fees greater than 5%. The law establishes a comprehensive definition of points and fees to remove the incentive ...