Finance
Predatory lending targeting elderly Louisiana homeowners with reverse mortgage fraud is prohibited by:
AOnly state law
BFederal and state laws including TILA, elder abuse statutes, and CFPB regulations✓ Correct
COnly the LREC's ethical guidelines
DOnly common law fraud doctrines
Explanation
Reverse mortgage fraud and predatory lending targeting elders are addressed by multiple federal laws (TILA, HOEPA, elder abuse statutes) and state consumer protection laws, with enforcement by the CFPB, state attorneys general, and other agencies.
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Key Terms to Know
Amortization
The gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
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.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
State-Specific Concepts
DRE Regulation
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