Finance
A Florida lender who charges more than the legal maximum interest rate is guilty of:
ARedlining
BUsury✓ Correct
CPredatory lending
DSteering
Explanation
Usury is the practice of charging interest above the legally allowable maximum rate. Florida's usury laws (Chapter 687 F.
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Key Terms to Know
Redlining
An illegal practice where lenders or insurers deny services or charge higher rates in certain neighborhoods based on the racial or ethnic composition of those areas.
SteeringAn illegal practice where a real estate agent directs buyers toward or away from certain neighborhoods based on the buyer's race, religion, national origin, or other protected characteristics.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Math Concepts
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