A lender in Baton Rouge fails to make a mortgage payment on behalf of a borrower from an escrow account, causing the borrower to incur a late fee. The borrower's mortgage was originated as a high-cost home loan under Louisiana's Predatory Lending Law. Which of the following best describes the Louisiana law's general approach to protecting this borrower?
Correct Answer
D) Louisiana's Predatory Lending Law provides state-level remedies including potential damages for violations of its provisions
Louisiana's Predatory Lending Law (La. R.S. 9:3578.1 et seq.) establishes state-level protections and remedies for borrowers of high-cost home loans. Violations of the statute's provisions can expose lenders to civil liability, including actual damages and other remedies provided under the act. The law operates alongside, not exclusively through, federal agencies.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Discount points are upfront fees paid to a lender at closing to reduce (buy down) the interest rate on a mortgage loan. One point equals 1% of the loan amount and typically reduces the rate by approximately 0.25%.
An FHA loan is a mortgage insured by the Federal Housing Administration that allows lower down payments and credit scores than conventional loans. It is designed to help first-time homebuyers and borrowers with limited resources.
A fixed-rate mortgage has an interest rate that remains constant for the entire term of the loan, resulting in equal monthly principal and interest payments throughout the life of the mortgage.
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