Finance
Under Colorado's anti-predatory lending laws, a 'high-cost mortgage' triggers additional protections for borrowers. These typically include restrictions on:
AA. Prepayment penalties, balloon payments, and loan flipping✓ Correct
BB. Only the interest rate
CC. Down payment amounts
DD. Only origination fees
Explanation
High-cost mortgage protections (under HOEPA at the federal level and related Colorado laws) restrict abusive practices including excessive prepayment penalties, balloon payments in short-term loans, loan flipping (repeated refinancing with little benefit), and mandatory arbitration clauses, among others.
Related Colorado Finance Questions
- A Colorado buyer's lender requires 'escrow' (impound account) for property taxes and insurance. This means:
- In Colorado, a 'construction-to-permanent loan' (C2P or CP loan) combines:
- A Colorado lender who discovers that the appraisal for a property was inflated through fraud (appraisal fraud) may:
- A Colorado 'hard money' loan is typically characterized by:
- A Colorado buyer's FHA loan requires a Mortgage Insurance Premium (MIP). The upfront MIP is:
- In Colorado, a mortgage lender is required to provide the borrower with a 'Loan Estimate' within how many business days of receiving the loan application?
- A Colorado lender's 'lock-in' on an interest rate means:
- A Colorado homebuyer using a VA loan learns their lender is requiring a 'termite inspection' even though the VA does not mandate it in Colorado. The lender is:
Practice More Colorado Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Colorado Quiz →