Section 7, Unit 3: Subprime Lending, Predatory Lending, and Mortgage Fraud

One common predatory lending practice is to charge fees for unnecessary or ______ loan products or services.

Non-existent

Which of these acts has special provisions for borrowers who are victims of over-charging?

Real Estate Settlement Procedures Act

Samuel and Yoshi have worked at the same firm for a few months and get along well. Samuel mentions he has a credit score in the low 800s. Yoshi, who's just starting out, persuades Samuel to sign for a loan to help Yoshi buy a property, since his credit isn't good enough. Yoshi promises to make the mortgage payments, but two months after the deal closes, Yoshi moves across the country. Samuel's now stuck with a $400,000 mortgage. What type of scheme is this?

Straw buyer

Borrowers who fall into the ______ category may be faced with paying interest 1% to 5% over the current market rate.

Subprime

Borrowers with B, C, and D credit ratings are ______ borrowers.

Subprime

What does TILA stand for?

Truth in Lending Act