Lending regulation
Predatory lending
Lending practices that exploit a borrower rather than serve them
The recognized patterns include equity stripping through repeated refinancing that consumes equity in fees, steering a borrower who qualifies for better terms into a worse product, inflating an appraisal to support an oversized loan, and burying costly features in the paperwork.
How the exam asks about it
Risk-based pricing, required appraisals and required flood insurance are ordinary lending practice and are the distractors in these items.
Related terms
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