Fair Housing

What is 'predatory lending' and why is it a fair housing concern in Illinois?

ALegal aggressive marketing of mortgage products to qualified buyers
BUnfair, deceptive, or fraudulent loan terms targeting vulnerable borrowers, often in minority communities, violating fair housing and lending laws✓ Correct
CHigh-interest rate lending approved by IDFPR for high-risk borrowers
DFederally approved subprime lending with government oversight

Explanation

Predatory lending involves deceptive or unfair loan practices that harm borrowers—including excessive fees, hidden terms, steering to high-cost loans when better options are available, and targeting vulnerable populations. Predatory lending disproportionately affects minority communities, making it a fair housing concern. Illinois has laws including the High Risk Home Loan Act to combat predatory lending.

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