Louisiana's Predatory Lending Law, found at La. R.S. 9:3578.1 et seq., primarily regulates which category of home loans?
Correct Answer
C) High-cost home loans that exceed specified rate and fee thresholds
Louisiana's Predatory Lending Law (La. R.S. 9:3578.1 et seq.) targets high-cost home loans — those where the annual percentage rate or total points and fees exceed defined statutory thresholds. The law restricts abusive loan terms such as balloon payments, negative amortization, prepayment penalties in certain circumstances, and loan flipping. It is modeled on federal HOEPA principles but applies specific Louisiana thresholds and remedies.
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Related Concepts
Foreclosure is the legal process by which a lender takes possession of a property when a borrower fails to make mortgage payments. It allows the lender to sell the property to recover the outstanding debt.
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