______________ 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.
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A. B. C. D.A
The answer to the question is A. Loan flipping.
Loan flipping refers to the practice of frequently refinancing a loan without providing any real benefit to the borrower. It is a predatory lending practice that takes advantage of vulnerable borrowers by charging them high fees and increasing their overall debt burden.
Loan flipping is particularly harmful in the context of mortgage loans, as it can decrease the borrower's home equity and increase the likelihood of foreclosure. The fees associated with frequent refinancing can also add up quickly, making it difficult for borrowers to keep up with their payments.
In addition to the harm caused to borrowers, loan flipping can also be detrimental to the overall stability of the lending market. By encouraging borrowers to take on more debt than they can afford, lenders increase the risk of default and foreclosure, which can have a ripple effect throughout the economy.
Overall, loan flipping is a predatory lending practice that harms borrowers and can destabilize the lending market. It is important for regulators and lenders to work together to prevent this practice and protect vulnerable borrowers from its harmful effects.