Finance
In New York, 'predatory lending' practices that are specifically addressed under New York Banking Law include:
ACharging points on a mortgage
BLoan flipping, equity stripping, and lending without regard to the borrower's ability to repay✓ Correct
CCharging origination fees on jumbo loans
DRequiring PMI on loans with LTV above 80%
Explanation
New York Banking Law section 6-l (high-cost home loans) and section 6-m (subprime home loans) address predatory lending practices including: loan flipping (repeatedly refinancing a loan to generate fees), equity stripping (loans designed to strip equity regardless of ability to repay), balloon payments, prepayment penalties, and mandatory arbitration clauses. These protections are in addition to federal HOEPA requirements.
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