What is loan flipping primarily characterized by?

Loan flipping is primarily characterized by refinancing a loan without providing any tangible benefit to the borrower. This practice often involves repeatedly refinancing a loan to take advantage of fees and commissions, which can lead to higher overall costs for the borrower rather than improvements in their financial situation. The focus is on the lender's profit rather than the borrower's benefit, creating a cycle that can leave the borrower in a worse financial position.

In this context, the other options describe different scenarios that do not align with the concept of loan flipping. The rapid sale of real estate properties reflects a different market activity, while increasing loan amounts addresses borrower needs rather than exploiting them. Similarly, reducing interest rates on existing loans is typically viewed as a positive move for the borrower, contrasting sharply with the exploitative nature of loan flipping.