Finance
Under Colorado's HB 22-1282 and related legislation, certain predatory lending practices in mortgage transactions are:
AEncouraged to increase access to credit
BProhibited, including excessive fees, balloon payments without proper disclosure, and lending without regard to ability to repay✓ Correct
COnly regulated for first-time homebuyers
DOnly applicable to commercial loans
Explanation
Colorado and federal laws (including the Dodd-Frank Act's ability-to-repay and QM rules) prohibit predatory lending practices such as excessive fees, structuring loans without regard to ability to repay, prepayment penalties beyond defined limits, and negative amortization without proper disclosure.
Related Colorado Finance Questions
- A Colorado buyer's mortgage principal balance after the first payment is typically:
- A Colorado buyer uses a 'buydown' to reduce the mortgage interest rate on a new home. In a 2-1 buydown, the interest rate in year one is:
- A Colorado buyer's 'pre-qualification' for a mortgage differs from 'pre-approval' in that:
- What is the purpose of a 'loan contingency removal' date in a Colorado real estate contract?
- A Colorado seller wants to provide 'seller financing.' To avoid the SAFE Act's mortgage loan originator licensing requirements, seller financing must meet certain exemptions. One key exemption requires:
- Which federal program provides mortgage insurance for Colorado senior homeowners through an FHA-insured reverse mortgage?
- A 'VA loan' benefit in Colorado allows eligible veterans to:
- The 'Dodd-Frank Wall Street Reform and Consumer Protection Act' (2010) created which consumer protection agency relevant to mortgage lending?
Practice More Colorado Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Colorado Quiz →