The
Maryland Association of Mortgage Brokers (MAMB)
has adopted a position on “predatory
lending,” it was announced today by Ralph
Dawson of RAM Financial in Largo, Md., and
president of the Association.
“MAMB
stands for equal access, full disclosure and
objective evaluations of all mortgages,”
begins the new position statement
“We
believe that ethical mortgage brokers should
utilize recognized standards including work
history, credit worthiness, down payment capacity
and debt-to-income ratios to evaluate and
process loan applications. Ethical mortgage
brokers strive to provide consumers with a
variety of options based on the consumer’s
individual financial situation and long-term
goals. Originators should explain all information
and give consumers the time necessary to make
a thoughtful and thorough decision.”
“By
contract, predatory lending practices are
based on fraud, coercion and greed,”
states MAMB which emphasizes that it supports
consumers and denounces predatory lending
practices.
This
Association defines “Predatory Lending”
as “intentionally placing consumers in
loan products with significantly worse terms
and/or higher costs than loans offered to
similarly qualified consumers in the region
for the primary purpose of enriching the originator
and with little or no regard for the costs
to the consumer.”
MAMB
points out that predatory lending practices
include purposeful actions taken by a lender
or originator to coerce consumers into a loan
without giving them the information and time
to make a knowledgeable decision and/or violating
the law to better the financial situation
of the lender at the expense of the consumer.
