Which of the following is permitted when servicing or originating a HOEPA loan?
A. Increasing the interest rate in the event of default
B. Disbursing funds directly to the contractor when the loan purpose is home improvement
C. Enforcing a pre-payment penalty
D. Originating a 3/23 balloon loan
Answer:C
Which of the following is permitted when servicing or originating a HOEPA loan?
A. Increasing the interest rate in the event of default B. Disbursing funds directly to the contractor when the loan purpose is home improvement C. Enforcing a pre-payment penalty D. Originating a 3/23 balloon loan