Common Practices Used by Dishonest Lenders Include All of the Following

question 1

Multiple Choice

Common practices used by dishonest lenders include all of the following, except the lender

• A) prohibiting the borrower from purchasing insurance or other financial services as a condition of the loan.
• B) charging high loan fees which cause financing costs to be much higher than the quoted rates.
• C) requiring that the borrower purchase insurance or other financial services.
• D) requiring a large balloon payment that will necessitate additional financing to pay it off.

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Definitions:

Undue Influence

A legal term referring to a situation where a person takes advantage of their power over another person, leading to unfair agreements.

Unsound Mind

A state or condition in which an individual lacks the legal or mental capacity to manage personal affairs or understand the consequences of actions.

Intestate Succession

The process by which property passes to others when people die without a will.

Antique Car Collection

The hobby or business of collecting cars from earlier periods, typically those that possess historical value or unique characteristics.