Guidelines for National Banks to Guard against Predatory and Abusive Lending Practices""AL-2003-2 says that refusing to purchase the following types of loans can reduce the possibility of purchasing abusive mortgage loans EXCEPT:
A.
Loans in which the lender has not adequately determined the borrower's ability to repay the debt
B.
Loans subject to the Home Ownership and Equity Protection Act (HOEPA)
C.
Loans with points and fees in excess of 5 percent of the loan amount, except in cases where the higher amount was to prevent the loan from being unprofitable
D.
Loans in which a prepaid multiple-premium credit insurance policy was included in the amount financed
This option is the exception in the context of the question because it outlines a specific scenario where loans with points and fees in excess of 5 percent of the loan amount could be considered, contrary to the general guidance against purchasing loans that could be deemed abusive. The inclusion of "except in cases where the higher amount was to prevent the loan from being unprofitable" indicates a potential exception to the guideline against purchasing such loans, unlike the other options which directly address practices commonly associated with predatory or abusive lending.
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