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Beware of Predatory Lending When Shopping for a Home
Predatory lending practices are the fraudulent, deceptive, and unfair tactics some people use to dupe consumers into mortgage loans they can’t afford. Burdened with high mortgage debts, victims of predatory lending find themselves unable to manage the upkeep of their houses. They struggle just to stay on top of their mortgage payments. Often, the strain […]
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Predatory lending practices are the fraudulent, deceptive, and unfair tactics some people use to dupe consumers into mortgage loans they can’t afford. Burdened with high mortgage debts, victims of predatory lending find themselves unable to manage the upkeep of their houses. They struggle just to stay on top of their mortgage payments. Often, the strain is too much. They succumb to foreclosure and lose their homes, which is devastating.
Run down and vacant houses, the inevitable result of predatory lending, wreak havoc on neighborhoods. Property values fall. People move away. Neighborhoods that once were stable start to crumble. Something that has been so important for so many people lay in ruins. Everyone who lived in a neighborhood destroyed by predatory lending becomes a victim.
The United States Attorney’s Office has made combating predatory lending a priority. The Office is taking a comprehensive approach to addressing the problem of predatory lending through education, prosecution, and remediation.
EDUCATION
An educated consumer is the predatory lending syndicate’s worst customer. Educated consumers know what loans are right for them and where to find them. The United States Attorney’s Office has prepared a brochure with some helpful information about preventing mortgage fraud. You can print it out, double-sided, and fold it in thirds to hand it out. PROSECUTION
The U.S. Attorney’s Office has prosecuted and will continue to prosecute the worst predatory lenders. The Office can use your help. Pay attention to what is going on in your community. If something looks suspicious, check it out. Report it.
Tips to Protect Your Home:
Get help! There are scores of housing and credit counselors that can help you decide whether a loan is right for you.
Know your credit rating. Obtain a copy of your credit report.
Trust your instincts. If it sounds too good to be true, it probably isn’t true. Many predatory lenders are slick salesmen. They know how to talk. They don’t always tell you the whole truth. If a deal doesn’t sound right to you, walk away.
Ask questions, demand answers. Predatory lenders will try to fool you by making your loan confusing. If you don’t understand anything, ask. Demand an answer.
Read everything. Get all the loan documents before closing. Don’t sign anything until you have read it. If there is something incorrect, fix it. If you’re confused about something, ask.
Don’t fall for a “bait and switch.” If what you read in your loan papers is not what you wanted, expected, or agreed to, don’t sign. Be prepared to walk out.
Learn about your loan. There are many organizations that produce publications that can be helpful.
Shop around. There are lots of people who may be willing to give you a loan. Most of them are honest, responsible people. Find them. Call as many banks as you can. Look in your newspaper’s real estate section for advertisements. Go to the library and search the internet; try “mortgage,” “mortgage rate,” and “mortgage companies.”
Take your time. A predatory lender will try to rush you so you can’t ask questions. Take all the time you need to understand what your deal is.
Say “No.” Don’t let someone talk you into something you really don’t want or need. Also, it’s ok to change your mind.
Never let a contractor get a loan for you. If you are doing home improvements, a contractor may tell you that he can get a loan for you. Don’t let him. Find the loan yourself; it will be cheaper.
Don’t make final payment to a contractor until all the work is done. Some contractors may ask you to sign over checks to them or to sign so-called “completion certificates” before they finish the work on your house. Don’t. Make sure you’re happy with the work on your house before you turn over any money to a contractor.
Avoid pre-payment penalties. If possible, don’t take a loan that penalizes you for re-financing. You may get stuck in a loan that you can’t get out of.
Don’t lie. No matter what anyone else may tell you, it’s not ok to lie on a form, even a little. If you get a loan based on false documents, you may be getting in over your head. You won’t be able to afford the loan.
Report wrongdoing. If you learn that someone did something illegal, report it.
Red Flags:
Aggressive solicitations. Whose idea was it to get this loan? Did someone sell it to you? Be wary of anyone who came to you trying to sell you a loan. If you need a loan, shop around for it yourself.
Loan flipping. Loan flipping is pressuring you to re-finance your loan over and over. Before you re-finance, make sure a new loan makes you better off. For instance, do not refinance a low interest loan into one with a higher interest rate. See a housing counselor.
High fees. Look at your Good Faith Estimate of Costs and your settlement sheet. Do you know what each fee is for? If not, ask. If your total fees are more than 5% of your loan, that’s probably too much.
Property taxes. If you don’t save enough money to pay your tax bill, a predatory lender will try to lend you money for your taxes. You may want to have your taxes “escrowed.” That means that you will put aside some money each month for your taxes.
Balloon Payments. A balloon payment is one very large payment you make at the end of the loan. Predatory lenders like balloon payments because they can tell you that your monthly payment is low. The problem is that you may not be able to make the payment and will need to re-finance. You’ll need a new loan with new fees and costs.
Consolidating debt. It’s not always a good idea to pay off your credit cards with a mortgage loan. If you can’t pay your credit cards, it’s almost impossible for someone to take your house. If you consolidate, however, your house is collateral. Consolidating means you risk losing your house to pay your credit cards.
Many government organizations publish consumer materials about predatory lending online, so be sure to consult those for more information.
Source: U.S. Department of Justice
Felicia Guidry is 2023-24 President of the Houston Black Real Estate Association (HBREA).
The post Beware of Predatory Lending When Shopping for a Home appeared first on Houston Forward Times.
The post Beware of Predatory Lending When Shopping for a Home first appeared on BlackPressUSA.
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Recently Approved Budget Plan Favors Wealthy, Slashes Aid to Low-Income Americans
BLACKPRESSUSA NEWSWIRE — The most significant benefits would flow to the highest earners while millions of low-income families face cuts

By Stacy M. Brown
BlackPressUSA.com Senior National Correspondent
The new budget framework approved by Congress may result in sweeping changes to the federal safety net and tax code. The most significant benefits would flow to the highest earners while millions of low-income families face cuts. A new analysis from Yale University’s Budget Lab shows the proposals in the House’s Fiscal Year 2025 Budget Resolution would lead to a drop in after-tax-and-transfer income for the poorest households while significantly boosting revenue for the wealthiest Americans. Last month, Congress passed its Concurrent Budget Resolution for Fiscal Year 2025 (H. Con. Res. 14), setting revenue and spending targets for the next decade. The resolution outlines $1.5 trillion in gross spending cuts and $4.5 trillion in tax reductions between FY2025 and FY2034, along with $500 billion in unspecified deficit reduction.
Congressional Committees have now been instructed to identify policy changes that align with these goals. Three of the most impactful committees—Agriculture, Energy and Commerce, and Ways and Means—have been tasked with proposing major changes. The Agriculture Committee is charged with finding $230 billion in savings, likely through changes to the Supplemental Nutrition Assistance Program (SNAP), also known as food stamps. Energy and Commerce must deliver $880 billion in savings, likely through Medicaid reductions. Meanwhile, the Ways and Means Committee must craft tax changes totaling no more than $4.5 trillion in new deficits, most likely through extending provisions of the 2017 Tax Cuts and Jobs Act. Although the resolution does not specify precise changes, reports suggest lawmakers are eyeing steep cuts to SNAP and Medicaid benefits while seeking to make permanent tax provisions that primarily benefit high-income individuals and corporations.
To examine the potential real-world impact, Yale’s Budget Lab modeled four policy changes that align with the resolution’s goals:
- A 30 percent across-the-board cut in SNAP funding.
- A 15 percent cut in Medicaid funding.
- Permanent extension of the individual and estate tax cuts from the 2017 Tax Cuts and Jobs Act.
- Permanent extension of business tax provisions including 100% bonus depreciation, expense of R&D, and relaxed limits on interest deductions.
Yale researchers determined that the combined effect of these policies would reduce the after-tax-and-transfer income of the bottom 20 percent of earners by 5 percent in the calendar year 2026. Households in the middle would see a modest 0.6 percent gain. However, the top five percent of earners would experience a 3 percent increase in their after-tax-and-transfer income.
Moreover, the analysis concluded that more than 100 percent of the net fiscal benefit from these changes would go to households in the top 20 percent of the income distribution. This happens because lower-income groups would lose more in government benefits than they would gain from any tax cuts. At the same time, high-income households would enjoy significant tax reductions with little or no loss in benefits.
“These results indicate a shift in resources away from low-income tax units toward those with higher incomes,” the Budget Lab report states. “In particular, making the TCJA provisions permanent for high earners while reducing spending on SNAP and Medicaid leads to a regressive overall effect.” The report notes that policymakers have floated a range of options to reduce SNAP and Medicaid outlays, such as lowering per-beneficiary benefits or tightening eligibility rules. While the Budget Lab did not assess each proposal individually, the modeling assumes legislation consistent with the resolution’s instructions. “The burden of deficit reduction would fall largely on those least able to bear it,” the report concluded.
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A Threat to Pre-emptive Pardons
BLACKPRESSUSA NEWSWIRE — it was a possibility that the preemptive pardons would not happen because of the complicated nature of that never-before-enacted process.

By April Ryan
President Trump is working to undo the traditional presidential pardon powers by questioning the Biden administration’s pre-emptive pardons issued just days before January 20, 2025. President Trump is seeking retribution against the January 6th House Select Committee. The Trump Justice Department has been tasked to find loopholes to overturn the pardons that could lead to legal battles for the Republican and Democratic nine-member committee. Legal scholars and those closely familiar with the pardon process worked with the Biden administration to ensure the preemptive pardons would stand against any retaliatory knocks from the incoming Trump administration. A source close to the Biden administration’s pardons said, in January 2025, “I think pardons are all valid. The power is unreviewable by the courts.”
However, today that same source had a different statement on the nuances of the new Trump pardon attack. That attack places questions about Biden’s use of an autopen for the pardons. The Trump argument is that Biden did not know who was pardoned as he did not sign the documents. Instead, the pardons were allegedly signed by an autopen. The same source close to the pardon issue said this week, “unless he [Trump] can prove Biden didn’t know what was being done in his name. All of this is in uncharted territory. “ Meanwhile, an autopen is used to make automatic or remote signatures. It has been used for decades by public figures and celebrities.
Months before the Biden pardon announcement, those in the Biden White House Counsel’s Office, staff, and the Justice Department were conferring tirelessly around the clock on who to pardon and how. The concern for the preemptive pardons was how to make them irrevocable in an unprecedented process. At one point in the lead-up to the preemptive pardon releases, it was a possibility that the preemptive pardons would not happen because of the complicated nature of that never-before-enacted process. President Trump began the threat of an investigation for the January 6th Select Committee during the Hill proceedings. Trump has threatened members with investigation or jail.
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Reaction to The Education EO
BLACKPRESSUSA NEWSWIRE — Meanwhile, the new Education EO jeopardizes funding for students seeking a higher education. Duncan states, PellGrants are in jeopardy after servicing “6.5 million people” giving them a chance to go to college.

By April Ryan
There are plenty of negative reactions to President Donald Trump’s latest Executive Order abolishing the Department of Education. As Democrats call yesterday’s action performative, it would take an act of Congress for the Education Department to close permanently. “This blatantly unconstitutional executive order is just another piece of evidence that Trump has absolutely no respect for the Constitution,” said Rep. Maxine Waters (D-CA) who is the ranking member on the House Financial Services Committee. “By dismantling ED, President Trump is implementing his own philosophy on education, which can be summed up in his own words, ‘I love the poorly educated.’ I am adamantly opposed to this reckless action, said Rep. Bobby Scott who is the most senior Democrat on the House Education and Workforce Committee.
Morgan State University President Dr. David Wilson chimed in saying “I’m deeply concerned about efforts to shift federal oversight in education back to the states, particularly regarding equity, justice, and fairness. History has shown us what happens when states are left unchecked—Black and poor children are too often denied access to the high-quality education they deserve. In 1979 then President Jimmy Carter signed a law creating the Department of Education. Arne Duncan, former Obama Education Secretary, reminds us that both Democratic and Republican presidents have kept education a non-political issue until now. However, Duncan stressed Republican presidents have contributed greatly to moving education forward in this country.
During a CNN interview this week Duncan said during the Civil War President Abraham “Lincoln created the land grant system” for colleges like Tennessee State University. “President Ford brought in IDEA.” And “Nixon signed Pell Grants into law.” In 2001, the No Child Left Behind Act was signed into law by President George W. Bush which increased federal oversight of schools through standardized testing. Meanwhile, the new Education EO jeopardizes funding for students seeking higher education. Duncan states, PellGrants are in jeopardy after servicing “6.5 million people” giving them a chance to go to college. Wilson details, “that 40 percent of all college students rely on Pell Grants and student loans.”
Rep. Alma Adams (D-NC) says this Trump action “impacts students pursuing higher education and threatens 26 million students across the country, taking billions away from their educational futures. Meanwhile, During the president’s speech in the East Room of the White House Thursday, Trump criticized Baltimore City, and its math test scores with critical words. Governor West Moore, who is opposed to the EO action, said about dismantling the Department of Education, “Leadership means lifting people up, not punching them down.”
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