The Department this week unveiled a new brochure -- Don't Be a Victim of Loan Fraud - Protect Yourself from Predatory Lenders -- that educates consumers on how to avoid becoming victims of predatory lending.

Each year thousands of elderly and minority and low-income homeowners are the main targets for predatory lenders. Many of these homeowners are on limited or fixed incomes, and are asset-rich but cash-poor. Unscrupulous lenders use an array of practices to strip the equity from the borrower's homes. HUD's easy-to-read pamphlet describes nine different types of predatory lending, offers 11 tips on being a smart consumer and describes seven tactics commonly used by predatory lenders.

The brochure is geared to all homebuyers, not just those with FHA insured mortgages.

The consumer booklet contains such tips as:

• Do not let anyone convince you to borrow more money than you know you can afford to repay.
• Do not let anyone persuade you to make a false statement on your loan application, such as overstating your income, the source of your downpayment, failing to disclose the nature and amount of your debts, or even how long you have been employed.
• Shop for a lender and compare costs. Be suspicious if anyone tries to steer you to just one lender.
• Hire a properly qualified and licensed home inspector to carefully inspect the property before you are obligated to buy.
• Never sign a blank document or document containing blanks.
• Interview several real estate agents, and ask for and check references before you select one to help you buy or sell a home.

The brochure also highlights the role of the more than 1,400 HUD-approved housing counseling agencies as a key information resource for current and future homeowners. Contacting these agencies is one of the first steps in dealing with potential predatory lending practices. Call toll-free 1 (800) 569-4287 for information about the counseling center nearest you.

Don't Be a Victim of Loan Fraud - Protect Yourself from Predatory Lenders is available on the Internet or by calling the HUD Direct Distribution Center toll-free at 1 (800) 767-7468. The brochure will be translated into Spanish in the near future.