Predatory Lending

Recently Released Rules - December 11, 2006

• Ohio Homebuyers’ Protection Act - Informational Document
• Foreclosure Assistance Information
• 185 CSPA Provisions
• Rules for Senate Bill 185:
  • 109 4-3-01
  • 109 4-3-19
  • 109 4-3-20
  • 109 4-3-21
  • 109 4-3-22
  • 109 4-3-23
  • 109 4-3-23 Appendix
  • 109 4-3-24
  • 109 4-3-25
  • 109 4-3-26
  • 109 4-3-27
  • 109 4-3-28
  • 109 4-3-29
  • 109 4-3-29 Appendix
  • 109 4-3-30
• Forms for Suppliers
  • Ohio Homebuyers’ Protection Act - Informational Document
  • Closing Disclosure Form
  • Acknowledgement of Receipt of Home Mortgage Loan Informational Document

Saving Tips

• Do not be pressured into signing for a loan you cannot afford.
• Do not respond to tactics of “if you don’t sign now you are going to miss out on the best deal possible.”
• You have a legal right to cancel in writing within three business days of signing loan documents unless the loan is to initially purchase your home.
• You do not have to sign if you go to closing and there are fees or charges you did not expect. Walk out!
• If you are thinking about consolidating your debts into a home-equity loan, talk to a local non-profit housing or consumer credit counseling agency first.
• If credit life or disability insurance fees are listed, ask if they are required and if not, ask to have them removed.
• Fill in all blank spaces. Do not sign a document until you have completed every space.
• Do not do business with lenders that tell you to falsify information on loan applications.

Loan Tips

• Obtain a copy of your credit report and score before applying for a loan or mortgage. If your credit is “less than perfect,” “clean up” your credit before buying a home. If necessary, consult Consumer Credit Counseling Services.
• Get references. Check with the local Better Business Bureau before doing business with a lender or mortgage broker.
• Shop around for the best loan and do your homework. Check with at least three lenders and compare rates. Look at the annual percentage rate (APR), fees, points and closing costs associated with the loan. Examine the terms of the loan and the monthly payment. Look for prepayment penalties.
• Do not do business with unsolicited lenders. If the lender called you or came to your door uninvited, do not agree to anything.
• Take your time. Read every document thoroughly and review with an attorney.

Quick Links

• Avoid Becoming A Victim Of Predatory Lending
• DOC Consumer Assistance Info
• HUD site on buying a home
• HUD: How to Avoid Foreclosure
• Federal Reserve Board: Putting Your Home on the Line is Risky Business
• AARP: Avoid Predatory Lenders
• BBB: Beware of Predatory Lending Practices in the Home Lending Industry