What is "Loan Flipping" in the context of predatory lending?

In the context of predatory lending, "Loan Flipping" refers to the practice of refinancing a borrower repeatedly with little or no benefit to them, often incurring high fees. This method is exploitative, as it targets borrowers who may be in vulnerable financial situations and encourages them to refinance their loans frequently. Each refinance can involve significant costs, such as closing costs and origination fees, which may outweigh any potential benefits, such as lower interest rates. This cycle can lead to an increased debt burden for the borrower, trapping them in a harmful financial situation.

The other choices represent different lending concepts that do not specifically address the core issues involved in loan flipping. Selling a property multiple times rapidly does not encapsulate the refinancing aspect. Borrowing more than a property is worth relates to a different form of financial misconduct known as "under-equity borrowing." Retiring debt through multiple loan types does not involve the cycle of refinancing that characterizes loan flipping. The defining feature of loan flipping is the repeated cycle of refinancing without substantial benefits to the borrower, distinguishing it from other lending practices.