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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