Under the TILA,for subprime mortgage loans,a lender:

Question

Quizplus · Accepted Answer

Under the TILA, for subprime mortgage loans, a lender is required to avoid making loans with balloon payments. Balloon payments are a lump sum payment due at the end of the loan term, which can make it difficult for borrowers to repay and can lead to foreclosure. Therefore, answer B is the best choice. 
A is incorrect because lenders must disclose any prepayment penalty and may not charge it for at least 60 days after the loan is granted. 
C is incorrect because lenders may adjust the monthly payment if it is an adjustable-rate mortgage. 
D is incorrect because the borrower's ability to repay the loan must be considered, including their income, expenses, and debts.

Under the TILA,for Subprime Mortgage Loans,a Lender