Predatory lending is defined as a type of lending that falls between appropriate risk-based pricing and blatant fraud and combines certain products, terms, prices and practices. Ok lets think about this a loan is written to people with F type credit and then 55.1% get a loan with little or no documentation required. Then most of these people were written an ARM loan without concern if they would be able to pay the payment in the future. Many people are willing to do anything to get a home. The practice of giving such a loan might be predatory lending. Then again it could just be Mortgage fraud. This happens when someone knowingly misrepresents the truth or concealment of a material fact in a mortgage application to induce another to approve the granting of a mortgage. Mortgage fraud refers solely to fraudulent schemes pertaining to residential mortgages. Either way the question now is to bail the banks out or not to. If you just paid all of the homes off it would sum up to $536,964,808,868. But then if you pay off just those whose payments were late in the last twelve month which is 1,234,993 for a total of $227,136,207,581. Maybe those in government should explain why they need $700,000,000,000.