West Virginia Mortgage Law Practice Test

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Prepare for the West Virginia Mortgage Law Test. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

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The maximum rate of finance charges that may be collected in a subordinate loan transaction is no more than:

  1. 10%

  2. 15%

  3. 20%

  4. 25%

The correct answer is: 10%

A The maximum rate of finance charges for a subordinate loan transaction refers to the percentage of interest and fees that can be charged on top of the initial loan amount. This rate is set to a maximum to protect borrowers from excessive charges and to ensure fair lending practices. Option B, C, and D all have higher percentages which would result in a greater financial burden for the borrower. Therefore, these options are incorrect as they do not align with the regulations for subordinate loan transactions.

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