Which of the following is not considered a predatory lending practice?

Charging a prepayment penalty is not considered a predatory lending practice because it is often a standard clause in many loan agreements, especially on high-risk loans. A prepayment penalty typically allows a lender to charge fees if a borrower pays off their loan early, which is intended to protect the lender's investment by ensuring they collect a certain amount of interest over the life of the loan. While prepayment penalties can be viewed unfavorably by borrowers who wish to refinance or pay off their debts sooner, they are not inherently manipulative or exploitative practices.

In contrast, practices such as manipulating loan terms to trap borrowers, loan flipping, and imposing high fees without explanation have clear characteristics of predatory lending. These actions are designed to exploit borrowers, often leading them into unmanageable debt and financial distress. By taking advantage of vulnerable borrowers, such practices lead to a cycle of refinancing and increasing indebtedness, which is detrimental to the borrower's financial health. Thus, charging a prepayment penalty stands apart as it aligns more with standard loan practices rather than deceptive or predatory behavior.