QUESTION: 21

is frequent refinancing that do not benefit the borrower. This practice can result in borrower injury from the fees imposed and from the fact that it decreases home equity and increases the consumer's debt burden, thus increasing the chance of foreclosure.

Loan flipping
Loan refinancing
Securitization
Subprime loans

Answer(s): A

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QUESTION: 21

is frequent refinancing that do not benefit the borrower. This practice can result in borrower injury from the fees imposed and from the fact that it decreases home equity and increases the consumer's debt burden, thus increasing the chance of foreclosure.

Loan flipping
Loan refinancing
Securitization
Subprime loans

Answer(s): A

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QUESTION: 22

Guidelines for National Banks to Guard against Predatory and Abusive Lending Practices--AL-2003-2 says that refusing to purchase the following types of loans can reduce the possibility of purchasing abusive mortgage loans EXCEPT:

Loans in which the lender has not adequately determined the borrower's ability to repay the debt
Loans subject to the Home Ownership and Equity Protection Act (HOEPA)
Loans with points and fees in excess of 5 percent of the loan amount, except in cases where the higher amount was to prevent the loan from being unprofitable
Loans in which a prepaid multiple-premium credit insurance policy was included in the amount financed

Answer(s): D

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QUESTION: 22

Guidelines for National Banks to Guard against Predatory and Abusive Lending Practices--AL-2003-2 says that refusing to purchase the following types of loans can reduce the possibility of purchasing abusive mortgage loans EXCEPT:

Loans in which the lender has not adequately determined the borrower's ability to repay the debt
Loans subject to the Home Ownership and Equity Protection Act (HOEPA)
Loans with points and fees in excess of 5 percent of the loan amount, except in cases where the higher amount was to prevent the loan from being unprofitable
Loans in which a prepaid multiple-premium credit insurance policy was included in the amount financed

Answer(s): D

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Free CRCM Exam Braindumps (page: 17)

QUESTION: 21

QUESTION: 21

QUESTION: 22

QUESTION: 22

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