Predatory lending occurs chiefly in the sub prime mortgage market, where most borrowers are loosely qualified by the equity in their homes for debt consolidation or loan purposes. In addition, these customers can sometimes be manipulated into bad loans because they want to solve a financial issue. Because of this, mortgage companies and brokers frequently mark up mortgage interest rates to boost their profit margins.

The amount of profit that can be generated provides a luring temptation to break the rules. If you do not protect yourself from the possibility of mortgage loan rip-off, your chances of receiving a excessive priced loan with high points and fess is extremely high.

Current mortgage structure promotes fraud

The difficulty in getting a fair mortgage loan is partly due to the overall structure of the mortgage industry. Under the current structure, a mortgage company is rewarded – through a commission received from the bank, by charging you a higher rate than you qualify for. This is common knowledge, and indeed readily accepting throughout the industry. Isn’t that just lovely?

Now, in some cases it can be a fair exchange, provided the customer is made aware of the scenario and, for example, does not want to pay any up front coats. This is usually negotiated up front.

Unfortunately, current trends show that this area has been greatly abused. Dishonest mortgage companies jack up mortgage rates to whatever level the customer can bear, all the while telling the customer what a “great deal" it is or how much the customer is saving. As one broker put it: "I tell them what do they care what the rate is, as long as you’re saving money."

That sounds great, but if you qualify for a rate of 6.5% with no hassles, and you sign up for a loan at 6.99% for thirty years, well you do the math – it adds up. Understand?

In addition, dishonest mortgage companies have a shopping list of add-ons that can put more money in their pocket.

The important thing to know is mortgage rip-off is as much a process as it is a result. It is a process because it can start from the moment you say hello. The companies that engage in this activity are probing the customer to find their weaknesses to exploit – all with a smile. They probe the customer to find out what is important and what is not.

Bearing the above facts in mind, don’t make a move until you receive the best advice for your mortgage needs. Your proper selection of a mortgage loan need not be an expensive hit-and-miss proposition.

Mortgage Secrets Exposed! - Explaining the Process of Mortgage Loan Rip-off

Eleazar Heracleopolis, http://www.accumortgagesecrets.com is the author of "Mortgage Secrets Exposed," the top rated mortgage resource helping consumers prevent mortgage loan rip-off - one loan at a time.