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Holly Bakke Warns Customers about Predatory Lending
Banking must be done cautiously, as Holly Bakke, banking and finance expert, is well aware of. In these times of financial crisis, every cent counts and must be placed in the trust of worthwhile financial entities. There are many Acts that protect consumers from swindlers and give them an advantage in the financial field.
In New Jersey, one of these Acts is the Home Owners Security Act of 2002, a piece of legislation which prohibits certain credit insurance premiums, and debt cancellations, as well as encouraging and recommending default on an existing mortgage plan and more. This Act also defends against Predatory Lending, which is a variety of lending practices that stand as disadvantageous to borrowers.
As Holly Bakke can explain, Predatory Lending covers a gamut of behavior that, undertaken by creditors, mortgage brokers or even home improvement contractors, may involve fraud and deception. This includes manipulating borrowers through aggressive sales tactics and taking unfair advantage over a borrower’s possible lack of comprehension towards loan terms.
While there are many varieties of acts that could be covered by Predatory Lending, these acts typically involve three particular elements:
1. Structuring an unaffordable loan based upon the assets possessed by the borrower, rather than the ability of the borrower to pay back the obligation.
2. Coercing a borrower to refinance a loan repeatedly to charge high points (otherwise known as “loan flipping”).
3. Acts of fraud and deception in order to conceal the true nature of any loan obligation from an unsuspecting/unsophisticated borrower.
A thorough knowledge of the Home Owners Security Act as well as its 2003 update could adequately protect a homeowner from such swindling methods, and ensure that their assets remain protected.
Holly Bakke’s extensive financial expertise is relied upon by Strategic Initiatives Management Group, LLC. Find her on facebook for updates.