Everyone that takes out a mortgage has to pay lender fees and closing costs. Predatory lenders inflate their fees and closing costs, often disguising them in the fine print of your loan contract. This is especially true of some lenders that specialize in bad credit mortgage loans. If the charges a lender quotes you seem excessively high, ask for an explanation of those fees. If the lender is not forthcoming with an explanation or will not reduce the fees in line with other lenders, you should seek your mortgage loan somewhere else.

There is another way predatory mortgage lenders take advantage of borrowers; bad lenders structure their loan terms to make it difficult for homeowners to keep up with their payments. They do this by requiring large balloon payments, periodic refinancing, or purchasing additional insurance as a condition of qualifying for the loan. The lender does this hoping you will default on the mortgage and they can seize your home. The Internet contains abundant information and resources on fair housing and predatory lending issues.

HUD's Office of Fair Housing and Equal Opportunity web page (www.hud.gov/offices/fheo/index.cfm) has number of articles, booklets, and guidance materials related to fair housing. In addition, the HUD Web site offers numerous resources on predatory lending, including a bibliography of predatory lending resources (www.hud.gov/offices/adm/library/bibliog/predlend.cfm) that was compiled by the Reference staff of the HUD Library.

The Federal Financial Institutions Examination Council (FFIEC) Home Mortgage Disclosure Act (HMDA) Web site (www.ffiec.gov/hmda/default.htm) has information on the Community Reinvestment Act, comments on and reactions to Regulation C and its amendments, and links to HMDA data. The Mortgage Bankers Association of America (MBA) has a Predatory Lending Resource Center Web site (www.mbaa.org/resources/predlend/) that has the latest news on predatory lending, updates on state, local, and federal regulations and activities, resources for MBA members and industry professionals, and useful Web links.