Ethics · 18% of the SAFE exameasy
Correct answer: Repeatedly refinances a borrower's mortgage with little or no benefit to the borrower, generating fees each time
Loan flipping refers to the predatory practice of repeatedly refinancing a borrower's mortgage, each time stripping equity through fees and closing costs, with no tangible benefit to the borrower. The lender profits from origination fees, prepayment penalties, and other charges on every transaction. "s appraised value" describes an LTV violation, not loan flipping. "Repeatedly refinances a borrower's mortgage with lit..." describes loan servicing transfer, which is a regulated but legal activity. "Transfers a borrower's loan to a third-party service..." describes a legitimate discount point arrangement.
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