Chicago Predatory Lending Practices Attorney, Chicago Truth in Lending Act Lawyerrs, Chicago Real Estate Settlement Procedures Act (RESPA) Attorneys

In recent years, we have seen a massive increase in the incidence of predatory lending practices and outright fraud in the mortgage origination industry. The use of new hybrid adjustable interest rate instruments, some with artificially low "teaser" interest rates in the early years of the loan has resulted in many borrowers being simply unable to make their mortgage payments when rates adjust to new. much higher levels.

For borrowers who have been the victim of lender or mortgage originator abuse, there are several federal laws provide which provide significant protections:

the Truth in Lending Act ("TILA");

the Home Ownership and Equity Protection Act ("HOEPA");

Regulation Z ("Reg Z"), which implements TILA and HOEPA;

the Real Estate Settlement Procedures Act ("RESPA").

These Acts and Reg Z, coupled with a number of Illinois laws provide attorneys with a potential arsenal of weapons which may be used to assist borrowers. They subject lenders who have violated their provisions with liability for actual damages, statutory damages of up to $2,000 in certain cases and attorneys fees and costs.

Violation of the provisions of these laws may also give borrowers the right to rescind their loans and to receive a refund of all interest and fees paid on an offending loan. This can be a powerful tool, enabling a borrower to refinance a mortgage to one which is affordable, using the refunded interest payments as well as amounts paid for loan fees to greatly reduce the balance of the new loan. Violations of these laws can also be used in defense of a foreclosure action by the offending lender.

Click here for information on Credit Practices and Collection Abuse from the FTC's Web Site

Law Offices of Barry Kreisler, P.C., a law firm with attorneys serving clients in the United States District Court from throughout Chicago, the Chicago metropolitan Area and Northwest Indiana, including the counties of Lake, Porter, and LaPorte and cities of Crown Point, Merrillville, Highland, Munster, Griffith, Schererville, Dyer, St. John, Gary, Hammond, Hobart, Portage, East Chicago and Valparaiso.