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Hill & Dale Credit Corporation Makes Mortgage Loans to Consumers

Question 33

Multiple Choice

Hill & Dale Credit Corporation makes mortgage loans to consumers secured by their principal homes.For a Hill & Dale loan to qualify as a Higher-Priced Mortgage Loan (HPML) ,its annual percentage rate must exceed,by a certain amount,


A) the average prime offer rate for a comparable transaction.
B) the consumer's income-to-debt ratio.
C) the percentage of income that a consumer can devote to its payment.
D) the projected increase in market value of the consumer's home.

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