Which type of lending does the Mortgage Reform and Anti-Predatory Lending Act aim to protect consumers from?

The Mortgage Reform and Anti-Predatory Lending Act specifically aims to protect consumers from predatory lending practices. Predatory lending encompasses a range of unethical actions by lenders, such as charging excessively high fees, engaging in deceptive practices, or pushing borrowers into loans that they cannot realistically afford. The Act was established to address these harmful practices that disproportionately affect vulnerable individuals and to promote transparency and fairness in the mortgage lending process.

It is important to note that while subprime lending can be associated with predatory practices due to the potentially high interest rates charged to borrowers with poor credit histories, the Act focuses more broadly on the concept of predatory lending itself, which can occur within various types of loans and lending environments. Commercial lending and peer-to-peer lending are not specifically targeted by this legislation, as it is primarily concerned with consumer mortgage loans. This distinction highlights why the emphasis is placed on predatory rather than subprime lending or other forms of lending not covered by this Act.