Predatory Lending Describes

question 203

Multiple Choice

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.

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Definitions:

Statute of Frauds

A legal principle that requires certain types of contracts to be in writing and signed by the party to be charged, to prevent fraud and perjury in contractual agreements.

Increase the Duties

The process of enhancing the responsibilities, workload, or performance expectations of a role or position.

Right to Payment

The entitlement to receive a certain amount of money, typically as a result of a contract or agreement.

Assignee

The person or entity to whom rights, interests, or properties are legally transferred.