Finance
Loan flipping — repeatedly refinancing a loan — is considered predatory because it:
AGives borrowers more favorable terms over time
BGenerates fees for the lender while stripping the borrower's equity✓ Correct
CCreates an amortization schedule favorable to borrowers
DIs prohibited only for FHA loans
Explanation
Loan flipping is when a lender induces a borrower to repeatedly refinance, generating origination fees and other costs each time while the borrower's equity decreases and they may end up in a worse financial position. It is a form of predatory lending.
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