Examples of Unfair Practices Mentioned in Guidelines Against Predatory and Abusive

question 172

Multiple Choice

Examples of unfair practices mentioned in guidelines against Predatory and Abusive Lending includes loan flipping and loan equity stripping. It is said that:

• A) Loan flipping may be unfair because it increases the chances of foreclosure by decreasing home equity and increasing debt burden
• B) Equity stripping is the practice of making loans secured by the consumer's home but with high, up-front fees that are financed and secured by the home
• C) Loan flipping is the practice of making loans secured by the consumer's home but with high, up-front fees that are financed and secured by the home
• D) Equity stripping may be unfair because it increases the chances of foreclosure by decreasing home equity and increasing debt burden

Comprehend the issues and controversies surrounding the measurement of intelligence across different ethnic and socio-economic groups.

Grasp the concept and implications of deviation IQ scores in interpreting intelligence.

Understand the components and theories of intelligence, including the differentiation between analytical, practical, and creative intelligence.

Recognize the impact of stereotype vulnerability on standardized testing and its implications for stigmatized groups.

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Definitions:

Nonrecourse Basis

A financing arrangement where the lender can only seize the collateral securing a loan and cannot seek further compensation from the borrower, even if the collateral does not cover the full value of the defaulted amount.

Sale and Leaseback

Sale and leaseback is a financial transaction where one sells an asset and leases it back for the long-term; thereby, one continues to use the asset without owning it.

Financial Lease

A type of lease in which the lessee has use of an asset through most of its useful life and the lease payments cover the original cost of the asset plus interest, resembling a loan purchase.

Lessor

The party in a lease agreement who owns the leased asset and grants the lease to the lessee in exchange for periodic payments.