Finance
A Georgia lender who charges excessive fees and misrepresents loan terms to vulnerable borrowers may be engaged in:
ALegal subprime lending
BPredatory lending, which violates federal and state consumer protection laws✓ Correct
CStandard sub-prime origination practice
DRESPA-compliant lending
Explanation
Predatory lending practices target vulnerable borrowers with excessive fees, deceptive terms, and unsuitable loans. These practices violate federal laws (TILA, FHA) and state consumer protection laws.
Related Georgia Finance Questions
- An 'interest rate cap' on an adjustable rate mortgage (ARM) limits:
- An FHA loan requires a minimum down payment of:
- What does 'assumption of mortgage' mean in a Georgia real estate transaction?
- A buyer assumes a seller's existing mortgage in Georgia. This means the buyer:
- A buyer in Georgia obtains a conventional loan requiring PMI. PMI is typically required when the down payment is less than:
- A Georgia buyer makes a 10% down payment on a $300,000 home. What is the loan amount?
- In Georgia, interest on a home equity loan is generally deductible if:
- A mortgage that is 'in default' means the borrower has:
Practice More Georgia Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Georgia Quiz →