EthicsQuestion 312 of 400
Repeatedly refinancing a borrower's loan primarily to generate new fees, with little or no net benefit to the borrower, is a predatory practice known as:
a.Steering
b.Redlining
c.Loan flipping (equity stripping)
d.Table funding
Explanation
Loan flipping is repeatedly refinancing to generate fees while stripping equity and providing no real benefit to the borrower. Steering pushes a borrower into worse terms for compensation, redlining denies credit by geography, and table funding is a neutral funding arrangement.
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