A brochure that warns consumers of potential borrowing pitfalls, including high-cost home loans, is now available in Spanish.
Titled Utilizar Su Hogar Como Garantía para un Préstamo es Arriesgado (Putting Your Home on the Loan Line Is Risky Business), the brochure encourages consumers to shop around before taking out a home equity loan. High-cost loans using one's home as security can result in homeowners losing their home and money.
For homeowners who decide a home equity loan is right for them, the brochure provides tips on how to get the best financing deal possible. It also suggests that borrowers should have a knowledgeable friend, attorney or housing counselor review loan documents. The brochure includes a shopping checklist and information on canceling a loan.
The publication was produced by the federal Interagency Task Force on Fair Lending, whose members are: the Department of Housing and Urban Development, Department of Justice, Federal Deposit Insurance Corp., Federal Housing Finance Board, Federal Reserve Board, Federal Trade Commission, National Credit Union Administration, Office of the Comptroller of the Currency, Office of Federal Housing Enterprise Oversight and Office of Thrift Supervision.
The brochure is available on the Federal Reserve Board's web site at www.federalreserve.gov/pubs/riskyhomeloans/riskyspanish.htm. A PDF version is provided so that consumer groups, financial institutions and other organizations can print copies for distribution to their clients and customers.
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