ABC National Bank regularly purchases mortgage loans from ACME Mortgage Company, a local mortgage broker. ACME places a
Posted: Tue Mar 08, 2022 10:40 am
ABC National Bank regularly purchases mortgage loans from ACME Mortgage Company, a local mortgage broker. ACME places a mandatory arbitration clause in each of its mortgage documents. ACME believes this clause is necessary because of state laws governing arbitration. Is this clause a problem for ABC National?
A. No, unless other predatory or abusive lending practices are evident in the loans sold by ACME.
B. Yes, the clause is a sign of an abusive lender, and the bank should not purchase the loans.
C. Yes, the bank should make ACME strike the clause from future loans.
D. No, this is a common practice and the bank can ignore it.
A. No, unless other predatory or abusive lending practices are evident in the loans sold by ACME.
B. Yes, the clause is a sign of an abusive lender, and the bank should not purchase the loans.
C. Yes, the bank should make ACME strike the clause from future loans.
D. No, this is a common practice and the bank can ignore it.