Under Illinois responsible lending principles, a lender who makes a high-cost loan to a borrower knowing the borrower cannot repay may face which consequence?
Correct Answer
B) The loan may be rescinded, and the lender may face damages, penalties, and regulatory action for predatory lending
Making a high-cost loan to a borrower who cannot repay is a predatory practice. Consequences include potential loan rescission, actual and statutory damages, civil penalties, and regulatory action by IDFPR.
Why This Is the Correct Answer
Making a high-cost loan to a borrower who cannot repay is a predatory practice. Consequences include potential loan rescission, actual and statutory damages, civil penalties, and regulatory action by IDFPR.
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A state regulator discovers during an investigation that an MLO has been splitting origination fees with an unlicensed individual who refers borrowers. The MLO claims the payments are for 'marketing services.' What investigative power would be MOST appropriate?
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Under New Jersey law, the statute of limitations for a foreclosure action on a residential mortgage is how many years from the date of default?