A 72-year-old borrower owns her home free and clear, valued at $290,000. She has a monthly income of $1,100 from Social Security. A lender approves her for a $220,000 cash-out refinance with a monthly payment of $1,650. Which predatory practice is most evident in this scenario?

Steering, because the borrower was directed toward a cash-out product instead of a HELOC Equity stripping, because the loan was approved based on the home's value with no regard for the borrower's ability to repay Loan flipping, because the borrower previously had no mortgage and is being placed into one unnecessarily Balloon payment trap, because the loan likely matures before the borrower can repay it