Finance
Which of the following is considered a 'predatory lending' practice?
ARequiring a 20% down payment
BCharging excessive fees and steering borrowers into loans they cannot afford or that are not in their best interest✓ Correct
CRequiring title insurance on all loans
DCharging origination points that are disclosed upfront
Explanation
Predatory lending involves deceptive, unfair, or abusive loan practices such as excessive fees, bait-and-switch offers, equity stripping, loan flipping, or steering borrowers into unnecessarily expensive or inappropriate loan products.
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