Asked by zachary kastner on May 13, 2024
Verified
Predatory lending describes:
A) a staggering increase in monthly payments leading to default.
B) monthly payments that are lower than monthly interest charges.
C) commission-driven brokers selling loans to people they know can't afford them.
D) loans extended to borrowers without proof of incomes.
Predatory Lending
Unscrupulous lending practices that impose unfair, deceptive, or abusive loan terms on borrowers, often leading to a debt trap.
Monthly Payments
Regular payments made on a loan or mortgage, usually consisting of principal and interest components, occurring once a month.
Commission-Driven Brokers
Financial agents whose earnings are primarily derived from commissions on sales or transactions they facilitate for clients.
- Understand multiple lending techniques and their outcomes.
Verified Answer
Learning Objectives
- Understand multiple lending techniques and their outcomes.
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