Finance
In Connecticut, 'predatory lending' typically refers to:
ALending at below-market interest rates
BUnfair and deceptive loan practices that trap borrowers in unaffordable loans✓ Correct
CRefusing to lend based on credit score
DOffering adjustable-rate mortgages to first-time buyers
Explanation
Predatory lending involves deceptive, manipulative, or unfair lending practices—such as excessive fees, flipping, equity stripping, or misleading terms—that harm borrowers, often targeting vulnerable populations.
Related Connecticut Finance Questions
- A Connecticut borrower's gross monthly income is $7,500. A conventional lender requires the total DTI to be 43% or less. What is the maximum total monthly debt including the mortgage?
- A Connecticut home buyer who is self-employed will likely need to provide what documentation to prove income for a mortgage?
- In a conventional mortgage, private mortgage insurance (PMI) is typically required when the loan-to-value ratio exceeds:
- A Connecticut borrower's front-end (housing) debt-to-income ratio is calculated by dividing:
- An FHA-insured mortgage requires a minimum down payment of:
- Connecticut's Home Ownership and Equity Protection Act (HOEPA) provisions relate to:
- Under the Community Reinvestment Act (CRA), banks and savings institutions are required to:
- Which government-sponsored enterprise (GSE) purchases conventional conforming mortgage loans on the secondary market?
Practice More Connecticut Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Connecticut Quiz →