Under New York's subprime lending regulations, which of the following loan features is PROHIBITED on a high-cost home loan?
Correct Answer
C) Negative amortization
New York prohibits negative amortization on high-cost home loans because it increases the borrower's principal balance over time, trapping them in growing debt.
Why This Is the Correct Answer
New York prohibits negative amortization on high-cost home loans because it increases the borrower's principal balance over time, trapping them in growing debt.
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Florida requires certain professionals to report suspected mortgage fraud. Which of the following is required to report suspected fraud to the appropriate authorities?