The Hard Sell: Conclusion

Executive Summary
Part I of this Report
Part II of this report
Part III of this report
Conclusion

 PART IV

Conclusion

Home equity lending abuse and fraud continues to be a problem for California homeowners. All of those involved in promoting economic and social stability through homeownership have a stake in ensuring that home equity lending abuse and fraud ends. Regulators must continue their enforcement efforts to identify the legal loopholes and unscrupulous business practices that allow many lenders to continue putting consumers in over their heads in mortgage debt. Legislators must be creative to address these causes and must enact consumer protections that eradicate these problems at their roots. They must create disincentives for certain business practices that cost innocent borrowers their homes and result in exploitation and tragedy. Law enforcement must continue to develop its potential to address and prosecute home equity lending fraud and abuse cases. Public interest organizations must continue to get the word out to consumers about the pitfalls of some types home equity lending borrowing. Consumers must make efforts to become informed and should seek the advice of qualified financial counselors before they sign on the dotted line. Finally, the lending industry must make great efforts to cooperate with regulators and join in the efforts to eradicate from their industry, rather than defend, those who exploit unsuspecting homeowners under the guise of "free enterprise."