Finance
In Hawaii, what is 'loan flipping'?
AA. Converting a short-term loan to a long-term mortgage
BB. A predatory lending practice of repeatedly refinancing a loan to generate fees while providing little benefit to the borrower✓ Correct
CC. Flipping a property quickly and paying off the loan simultaneously
DD. Converting a variable-rate loan to a fixed rate
Explanation
Loan flipping is a predatory lending practice where lenders repeatedly convince borrowers to refinance (often at higher rates or terms) primarily to generate origination fees, depleting the borrower's equity.
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