Ruth Owns a Home on Which She Has Two Mortgages

question 20

Multiple Choice

Ruth owns a home on which she has two mortgages provided by Security Bank.Town Refinance Inc.tells Ruth that it can refinance the loans to reduce her payments.Town Refinance provides all of the required documents,which accurately state the payments under the new loan as higher.Ruth does not read the documents.Town Refinance is most likely liable for

• A)fraud.
• B)misrepresentation.
• C)negative amortization.
• D)nothing.

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Definitions:

Pension Plan Distributions

Payments made from a pension plan to the beneficiary, retiree, or employee, which can be taxable or non-taxable depending on the plan type and contribution history.

Roth IRA

A type of individual retirement account allowing taxed contributions but offering tax-free growth and tax-free withdrawals in retirement under certain conditions.

Compensation

Payment or remuneration received by an individual for services performed, which can include wages, salaries, bonuses, and commissions.

Coverdell Education Savings Account

A tax-advantaged saving account designed to pay for education expenses from elementary through post-secondary education.