Finance

A Virginia mortgage lender who charges interest at a rate above Virginia's usury limit would be:

ACompliant since federal law preempts state usury limits for most mortgages✓ Correct
BIn violation of Virginia law if the mortgage is not covered by federal preemption
CEncouraged if it helps first-time buyers
DAllowed only for jumbo loans

Explanation

Federal law preempts state usury limits for most first mortgage loans made by federally chartered or insured institutions. However, for non-preempted loans, Virginia's usury laws apply.

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