Which of the following best illustrates predatory borrowing? A. Conforming loan with high LTV. B. Jumbo loan with high LTV. C. Jumbo loan with low LTV. D. Conforming loan with low LTV.
The riskiest borrower would be one who borrows a large amount with relatively little downpayment. Jumbo loans are above the conforming limit for GSE securitization and high LTV indicates low downpayment.
