No-Predatory Lending (NPL) Policy - Financial Predator Avoidance

Non-Predation Lending Policy

All Institute members and professionals are prohibited to transact in a manner that is predatory.

PEMI^® Financial Predator Avoidance Standards

All PEMI®-Certified professionals must adhere to rigorous standards for private equity mortgage transactions. Learn more.

What is Predatory Lending?

Although there is no single accepted definition nor internationally recognized statute or regulation for predatory lending; PEMI^® has established the following general understanding:

Predatory Lending is the practice of borrowing consumers entering into loan agreements by unscrupulous investors, lenders, brokers and bankers through various methods including:

• pressure tactics
• tricking (through fraud or deception)
• broker inexperience (through acts of commission and omission)

Predatory Lending is not a specific event, but rather, a series of events and actors "working together"; hence it is often effected through creation of a "business environment" which facilitates it's existence.

Financial Predators - the Correct term

Predatory lending, or activities of financial predation, are not done just by "lenders", but also the employees that they hire or the agents whom they work with. Further, because predatory lending is not merely an "act", but a series of events and actors within a business environment, predation may also be effected by appraisers, lawyers, bankers, real estate advisors, home inspectors, mortgage brokers, loan brokers. Indeed, any party to a transaction or multiple parties to a transaction may work independently or mutually, to effect an act of financial predation.

At PEMI^® we prefer to refer to predatory lenders as Financial Predators.

How to Identify a Predatory Lending Environment?

There are many ways to determine if you are subject to an environment of predation; one way to learn details is to take a consumer course delivered by PEMI called "The World of Financial Predation".