Virginia Real Estate Exam Practice Question
Which of the following is an example of a predatory lending practice?
Correct Answer: A
Rationale: Option A exemplifies predatory lending as it involves providing loans to consumers who lack the financial capacity to repay them, often leading to a cycle of debt and financial hardship.
Option B is incorrect; not selling loans on a secondary market does not inherently indicate predatory behavior, as it can be part of a legitimate lending strategy.
Option C is also incorrect; selling loans on a secondary market is a common practice that helps lenders manage risk and liquidity, and does not reflect predatory intent.
Option D, underwriting loans, refers to the assessment of creditworthiness and is a standard procedure in lending, not a predatory practice.
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