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What is a Predatory Loan

By Pierce Kelley

According to many experts, the economic meltdown our country is now experiencing is due, in large part, to a virtual collapse in our housing industry. From all accounts, the billions of dollars being expended by the U. S. Government to bail out Fannie Mae, Freddie Mac and others is the result of the failure of bad loans. The question may reasonably be asked, are unscrupulous lenders to blame, or are irresponsible borrowers at fault? And just what is a ‘predatory loan’?


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