Certified Regulatory Compliance Manager (CRCM) — Question 23

______________ is frequent refinancing that do not benefit the borrower. This practice can result in borrower injury from the fees imposed and from the fact that it decreases home equity and increases the consumer's debt burden, thus increasing the chance of foreclosure.

Answer options

Correct answer: A

Explanation

Loan flipping is the correct answer because it specifically describes refinancing practices that do not benefit the borrower and can lead to financial harm. Loan refinancing is a broader term that may include beneficial scenarios, while securitization and subprime loans do not directly pertain to the concept of frequent refinancing that is detrimental.