NC's Predatory Lending Law (NC General Statutes Chapter 24) provides additional protections beyond federal law for:
Why Residential mortgage borrowers, particularly regarding high-cost loans, prepayment penalties, and single-premium credit insurance Is Correct
Answer B: Residential mortgage borrowers, particularly regarding high-cost loans, prepayment penalties, and single-premium credit insurance
Exam Tip: Finance
Finance questions often involve calculations. Master the T-bar method, understand the difference between conventional and government-backed loans, and know key ratios like LTV and DTI.
Key Finance Terms in This Question
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Key Terms to Know
Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
AmortizationThe 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.
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