Guidelines for National Banks to Guard against Predatory and Abusive Lending Practices""AL-2003-2 says that refusing to purchase the following types of loans can reduce the possibility of purchasing abusive mortgage loans EXCEPT:
Guidelines for National Banks to Guard against Predatory and Abusive Lending Practices""AL-2003-2 says that refusing to purchase the following types of loans can reduce the possibility of purchasing abusive mortgage loans EXCEPT:
Guidelines aimed at reducing the risk of purchasing abusive mortgage loans typically focus on various forms of predatory lending practices, such as inadequate assessment of the borrower's ability to repay the loan, excessive points and fees, and the inclusion of credit insurance policies in the loan amount. Therefore, refusing to purchase loans subject to the Home Ownership and Equity Protection Act (HOEPA) does not directly correlate to preventing abusive lending practices, as HOEPA itself is a regulation designed to protect against high-cost and abusive loans. Hence, this option would be the one that does not align with the primary objective of reducing the risk of acquiring abusive loans.
D, found it in the OCC Advisory Letter. The answer here says "multiple" but it should be "single".
This option is the exception in the context of the question because it outlines a specific scenario where loans with points and fees in excess of 5 percent of the loan amount could be considered, contrary to the general guidance against purchasing loans that could be deemed abusive. The inclusion of "except in cases where the higher amount was to prevent the loan from being unprofitable" indicates a potential exception to the guideline against purchasing such loans, unlike the other options which directly address practices commonly associated with predatory or abusive lending.
Loans and premiums will be increasing