What is Loan Packing?

prao1 · Posted: Wed Dec 12, 2007 7:09 am Post subject: What is Loan Packing?

I think it means including some addtional insurances which are really not required for the loan.

Can someone explain me detailed as I am unable to understand the concept correctly.

Thanks,
Purna

larry · Joined: 27 Jun 2007 Posts: 3328 473.51 Dollars($)

Hi prao1,

Loan packing is a kind of scam. This is a major source of profit for the fraud brokers. Loan packing involves misleading you regarding the amount which you are being charged for add-on items.

Thanks,
Larry

Guest 0.10 Dollars($)

Hi larry, i didn't quite get you, what is loan packing and pls give some more details

bthahir · Joined: 05 Sep 2007 Posts: 36 13.22 Dollars($)

Hi Larry,
Thanks for the information.
If I'm not wrong, you mean to say sometimes broker add additional stuff like Insurance/ escrows etc? Is my understand correct? Please advise....

Thanks,

ckalvesmaki · Posted: Thu Dec 13, 2007 7:02 am Post subject:

Contrary to what Larry has posted......"Packing" a loan is not a scam. Also contrary to what Larry said it is not primarily mortgage brokers who do this.......Banks do it as well and probably far more often than a mortgage broker.

A loan is considered a "packed" loan when OPTIONAL products are added to it. Typically things like life insurance or disability. If you are being offered additional insurance.....on items like credit cards,car loans, a mortgage or personal loan.......That would be considered as "packing" a loan. It is not a scam but there are normally far better options available via your normal insurance agent. When it comes to mortgages......The most often offered product is mortgage life insurance......you would be much better off getting a level term life insurance policy than buying mortgage life policy.........in most cases.....

Larry........Kindly post factual information.....

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