Predatory Lending - ANSWER Loans that take advantage of ill informed consumer by
having excessively high fees, misrepresented loan terms and frequent refinancing that
doesn't benefit the borrower. Also known as "Subprime Lending". *Not all subprime loans
are predatory.*
Bait and Switch - ANSWER Alluring but insincere offer to sell product or service
Switch After Sale - ANSWER To switch consumers from buying advertised product to
something else. Took money then switched.
Bona Fide Offer - ANSWER Refusal of advertiser to show, demonstrate or sell product
offered.
Penalties for Mortgage Fraud - ANSWER Whoever knowingly executes a scheme shall
be fined not more than $1,000,000 or imprisoned not more than 30 years or both.
Ethics boils down to a few simple points: - ANSWER • Treat everyone equally
• Be honest
• Give full disclosure
• Do not take advantage
• Keep good documentation
Penalties for unethical behavior: - ANSWER Loss of license
Civil lawsuits involving money
Suspension
1
having excessively high fees, misrepresented loan terms and frequent refinancing that
doesn't benefit the borrower. Also known as "Subprime Lending". *Not all subprime loans
are predatory.*
Bait and Switch - ANSWER Alluring but insincere offer to sell product or service
Switch After Sale - ANSWER To switch consumers from buying advertised product to
something else. Took money then switched.
Bona Fide Offer - ANSWER Refusal of advertiser to show, demonstrate or sell product
offered.
Penalties for Mortgage Fraud - ANSWER Whoever knowingly executes a scheme shall
be fined not more than $1,000,000 or imprisoned not more than 30 years or both.
Ethics boils down to a few simple points: - ANSWER • Treat everyone equally
• Be honest
• Give full disclosure
• Do not take advantage
• Keep good documentation
Penalties for unethical behavior: - ANSWER Loss of license
Civil lawsuits involving money
Suspension
1
