About the Auditor
Deeds & Mortgages
Delinquent Tax List
Predatory Loans &
Avoid Predatory Loans
As a borrower, you have rights.
To get the best deal, follow this advice from the Center for
Responsible Lending, MSN Money and the American Association
of Retired Persons (AARP).
Don't take the first deal offered. Shop around.
Don't sign something you don't understand. Ask questions and talk to
a trusted friend or adviser.
Don't fall for high-pressure sales tactics.
Don't trust ads promising: "No Credit? No Problem!"
Don't sign blank forms that the lender promises to fill in later.
Don't borrow more money than you need.
Don't accept payment terms that you can't meet.
Don't agree to balloon payments. This large sum of money due at the
end of a loan could cost borrowers their home if they can't meet the
payment or refinance the loan (usually at an excessive cost).
Don't purchase credit insurance with your loan. Usually this
insurance is extremely profitable for the lender but provides little
benefit to the borrower.
Spot Predatory Lenders
According to the Center for
Responsible Lending, predatory lenders promise loans that
sound too good to be true. Below are the Seven Signs of
- Excessive Fees:
Fees below one percent of the loan are typical on
competitive loans. Fees totaling more than five percent
of the loan are typical of predatory loans.
- Abusive Prepayment
Penalties: These are fees imposed for paying off
the loan early. An abusive prepayment penalty is
one that costs more than six months interest or is
effective more than three years.
- Kickbacks to Brokers:
A "Yield Spread Premium" or YSP is a cash bonus that a
lender gives a broker for placing borrowers in a loan
with a higher than normal interest rate. The higher the
interest rate, the higher the kickback to the broker, at
- Loan Flipping:
Refinancing a loan to generate fee income, without
providing any net tangible benefit to the borrower,
- Unnecessary Products:
Lenders should not sell unnecessary insurance or other
products along with the loan.
- Mandatory Arbitration:
Borrowers are not allowed to seek legal remedies in
court if their home is threatened by loans with illegal
or abusive terms.
- Steering & Targeting:
"Steering" borrowers into a "subprime" mortgage when
they could qualify for a mainstream loan.
For more information on
predatory loans and lenders, please contact:
Attorney General's Office
The Ohio Department
AARP Consumer Affairs Division