Predatory Lending 101-Real Estate Professionals

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Presentation:

Subject:

Predatory Lending

Title:

"Predatory Lending 101 For Real Estate Professionals"

Time:

8 a.m. - 4 p.m.

Presenter: Mildred Wilkins, President
Home Ownership Matters
E-mail HOM

"Predatory Lending 101 For Real Estate Professionals"
Introductory Course for Real Estate Professionals

Goal

The goal of this course is to give the real estate practitioner enough basic information to:

1) Recognize predatory lending practices

2) Explore the overall impact on consumers and community stakeholders

3) Discuss practical recommendations to handle situations with clients

4) Provide resources to do additional study on the subject

5) Discuss options to avoid foreclosure

6) Provide additional resources for REALTORS® who wish to get involved in making headway
AGAINST predatory lending practices.

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Registration sign-in: 8:30 to 9 a.m. Class starts promptly at 9 a.m.
Audit (only) after 9:15 a.m. No credit will be given.

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A. Welcome and Introduction

10 min

Icebreaker exercise

B. Definition of a predatory loan

5 min

C. Define and clarify how mortgage fraud differs from predatory lending

5min

D. Discuss overlap 5 min

5 min

E. Predatory lending practices (group discussion)

25 min

1. Single premium credit insurance
2. Flipping (repeated refinancing)
3. Prepayment penalty
4. Balloon payments
5. Excessive broker fees
6. Lending without regard to borrowers ability to pay
7. Excessive closing costs
8. Yield spread premium
9.. High interest rates

F. Predatory lending as a Fair Housing issues

5 min

G. What is the impact on communities?

10 min

1. Real estate values
2. Abandoned properties
3. Health concerns
4. Remaining residents
5. Insurance coasts

H. Economic implications for lenders

5 min

I. Economic implications for consumers

5 min

Break: 10:15 until 10:30

J. Loan shark film: 18 minutes Discussion of film: 12 minutes

30 min

K. Discuss the role of Appraisals ??

10 min

L. Discuss regulatory concerns

10 min

1. Lender viewpoint
2. Appraiser viewpoint
3. Consumer viewpoint

M. Real estate industry frustration

10 min

N. Pre-foreclosure intervention (group discussion)

30 min

1. Special forbearance
2. Mortgage modification
3. Partial claim
4. Pre-foreclosure sale
5. Deed-in-lieu of foreclosure

Lunch—on your own. Class resumes at 1 p.m. sharp 1 hour

O. Legal options

10 min

P. Related enforcement possibilities

20 min

Q. Sample Attorney General complaint form

10 min

R.. Statistics in foreclosure

20 min

S.. Backdrop from Family Strengthening Summit ( handout and discussion)

T. Good Faith estimate 5 min

5 min

U. Samples of original and revised good faith estimates

10 min

Break: 2:15-2:30 p.m. Resume promptly at 2:30

V. Deterrents to predatory practices

5 min

W. Recommended Action Steps (Group discussion)

35 min

X. REALTOR® resources

5 min

Y. Predatory Lenders: Equal Opportunity providers

15 min

Z. Targeted/most likely victims

15 min

AA.. Opinion/feedback

15 min