Under UDAAP regulations, which of the following would most likely be considered an unfair practice?
Correct Answer
D) Steering borrowers to higher-cost loans when they qualify for lower-cost options without disclosure
Under UDAAP, an unfair practice is one that causes or is likely to cause substantial injury to consumers that is not reasonably avoidable and is not outweighed by benefits. Steering qualified borrowers to higher-cost loans without disclosure causes substantial injury that consumers cannot reasonably avoid.
Why This Is the Correct Answer
Under UDAAP, an unfair practice is one that causes or is likely to cause substantial injury to consumers that is not reasonably avoidable and is not outweighed by benefits. Steering qualified borrowers to higher-cost loans without disclosure causes substantial injury that consumers cannot reasonably avoid.
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Next Question
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