Hi @
Johnson , I remember struggling a bit with this question but somehow I located the exact page in my mind from the corresponding text (Ashcroft) and I have marked option a.
In hindsight I think this is correct, as I looked in the text and found the following (on page 14):
Seven signs of predatory loan
1. Excessive fees (points and other fees >= 5% )
2. Abusive prepayment penalties
3. Kickbacks to brokers
4. Loan flipping (repeated refinancing to get fee income)
5. Unnecessary products
6. Mandatory arbitration requires a borrower to waive legal remedies in the event that
loan terms are later determined to be abusive
7. Steering and targeting borrowers into subprime products when they would qualify for
prime products.
Notice the 4th sign (which is pretty much the same as option a from the exam question) and sign 7 which is actually "the other way around". That is if the answer options were indeed formulated as such (I am not 100% sure).
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