Finance
What is 'predatory lending' and how might it affect Rhode Island homebuyers?
ALending at below-market rates to attract borrowers
BAbusive loan practices that take advantage of borrowers through deceptive terms, excessive fees, or loans the borrower cannot afford✓ Correct
CLenders competing aggressively for business
DGovernment-sponsored loans at low rates
Explanation
Predatory lending involves deceptive, abusive, or unfair lending practices—such as balloon loans marketed to unsophisticated borrowers, excessive fees, or steering borrowers into higher-cost products than they qualify for. It disproportionately harms vulnerable communities.
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