The purpose of advisory letter in Avoiding Predatory and Abusive Lending Practices in Brokered and Purchased Loans- AL-2003-3 is to:
- Adopt sound credit underwriting policies
- Alert national banks to the risks they take if they make loans through brokers or purchase loans that contain or reflect abusive or predatory terms or practices
- Adopt policies that address the circumstances under which the bank would make loans that have features associated with abusive lending practices
- Make loans secured by the consumer's home but with high, up-front fees that are financed and secured by the home