Which of the following loan modifications on a New York high-cost home loan would be considered a prohibited practice?
Correct Answer
A) Repeatedly refinancing the loan within a short period solely to generate fees
Loan flipping — repeatedly refinancing a loan within a short period primarily to generate additional fees rather than benefit the borrower — is a prohibited predatory practice under New York law.
Why This Is the Correct Answer
Loan flipping — repeatedly refinancing a loan within a short period primarily to generate additional fees rather than benefit the borrower — is a prohibited predatory practice under New York law.
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