EthicsQuestion 313 of 400
Which of the following is most characteristic of predatory lending?
a.Verifying the borrower's ability to repay before closing
b.Providing clear, accurate disclosures
c.Offering the borrower the lowest cost option they qualify for
d.Making a loan the lender knows the borrower cannot afford to repay
Explanation
Making a loan without regard to, or despite knowing, the borrower cannot repay is a core feature of predatory lending and violates ability-to-repay principles. Verifying repayment ability, giving accurate disclosures, and offering the lowest-cost qualifying option are all hallmarks of responsible, non-predatory lending.
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