Journal Article

Borrower beware: equity strippers are preying on elderly homeowners


Abstract: While most subprime home equity lenders provide a valuable service for marginally creditworthy borrowers, certain disreputable lenders are engaging in more predatory lending practices. Equity strippers target elderly homeowners who are often cash poor but equity rich. These predatory lenders often convince lower-income elderly homeowners to take in high rate, high fee, second mortgages which ultimately lead to foreclosure. Luxman Nathan of the Federal Reserve Bank of Boston highlights some of the techniques used by equity strippers and what regulatory and legal options are available for elderly consumers who fall victim to predatory lenders.

Keywords: Mortgages; Predatory lending;

Access Documents

File(s): File format is application/pdf http://www.bostonfed.org/commdev/c&b/1999/spring99.pdf

Authors

Bibliographic Information

Provider: Federal Reserve Bank of Boston

Part of Series: Communities and Banking

Issue: Spr

Pages: 6-17