Finance
Washington State's Home Loan Protection Act (RCW 61.34) provides protections against predatory lending. The act requires that high-cost loans not include certain features. Which of the following features would NOT trigger predatory lending concerns?
AMandatory arbitration clauses preventing court remedies for borrowers
BA fixed interest rate that is below the current market rate✓ Correct
CPrepayment penalties exceeding statutory limits
DNegative amortization (loan balance growing over time)
Explanation
A below-market fixed interest rate is not a predatory lending feature — it is a benefit to the borrower. Predatory lending features include negative amortization, excessive prepayment penalties, mandatory arbitration, balloon payments for short-term loans, and excessive fees.
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