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1. Mark the statements below as true or false.

  1. Young homeowners are more likely to be vulnerable to high pressure pitches.

  2. Predatory home equity lenders target mostly people in financial or personal crisis for high-cost loans secured by their homes.

  3. These subprime lenders appear to care much about a borrower’s ability to pay.

  4. The lenders are able to prey on homeowners because mortgage transactions are easy to understand.

  5. These practices are among the most abusive forms of consumer exploitation.

  6. Such fraudulent operations as loan flipping, the “Home improvement” loan, credit insurance packing and mortgage servicing abuses are popular among swindlers.

  7. If we speak about loan flipping, contractors obtain your consent for a loan with high rates and fees through the use of deception.

  8. If we speak about credit insurance packing, the lender never tells you that credit insurance comes with the loan.

  9. Fraudulent lenders also deceive borrowers during the loan period with overdue balances, service fees, and advances.

10)Fraudulent lenders deceive borrowers in many different ways.

2. Choose the right word or word-combinations from the text.

  1. You should be aware that home remodeling contractors ranked just behind car salespeople and auto mechanics in generating many consumer ... .

a) problems c) complaints

b) things d) wishes

  1. Old homeowners are less likely to undertake home ... themselves.

a) work c) changes

b) repairs d) things

  1. The work was never completed and the couple defaulted on the ... payments.

a) credit c) new

b) last d) mortgage

  1. The proceeds of the ... were used to construct a fifty-foot decorative fence.

a) loan c) work

b) business d) house

  1. The lender may tell you that credit ... comes with the loan.

a) document c) obligation

b) insurance d) card

3. Match the following English expressions with their Russian equivalents.

1) repairing

2) credit insurance

3) servicing abuses

4) vulnerable homeowners

5) to convert the loan

6) mortgage

7) to hire a consultant

8) refinancing

9) loan

10) consumer complaints

a) нанять консультанта

b) конвертировать заем

c) жалобы потребителей

d) закладная, ипотека

e) заем

f) ремонт

g) уязвимые домовладельцы

h) рефинансирование

i) служебные злоупотребления

j) кредитное страхование (страхование кредитов)

4. Complete the sentences. Use the text if necessary.

  1. Be especially cautious about ... .

  2. If you fail to repay the loan as agreed ... .

  3. Old homeowners are popular targets of fraudulent home repair financing schemes because ... .

  4. An elderly couple with an outstanding balance on their mortgage of less than $1000 met three men who ... .

  5. Another couple was approached by home improvement contractors and ... .

  6. The “Home improvement” loan involves ... .

  7. After you’ve made a few payments on the loan ... .

  8. If the loan has a pre-payment penalty ... .

  9. Fraudulent lenders also deceive borrowers during the loan period with ... .

10)The ways swindlers use to deceive people are different and ... .

5. Explain in English the meaning of the following words and expressions.

complaints

loan

income

to be vulnerable

creditworthiness

abuse

6. Give synonyms to the next words from the text.

cautious, popular, to encourage, claim, obtain, deception

7. Give antonyms to the next words from the text.

salespeople, agree, repair, vulnerable, complicated, increase

8. Make up a short summary of the text.