Which of the following actions is classified as loan flipping?

Loan flipping refers to the practice of encouraging borrowers to refinance their loans multiple times, often with the aim of generating additional fees or commissions for the lender. This action usually does not significantly benefit the borrower and can lead to increased financial strain, as each refinance typically incurs new fees and possibly extends the borrower's term without improving their financial situation.

In this context, frequent refinancing for fee profit exemplifies loan flipping because it emphasizes the lender's interest in maximizing profit over the borrower's long-term financial health. This practice is often criticized and can lead to regulatory scrutiny, as it may exploit vulnerable borrowers who may not fully understand the implications of repeated refinancing.

The other actions mentioned do not fit the definition of loan flipping. For instance, providing a low-interest rate for a longer term can be beneficial to borrowers, and offering fixed-rate loans provides stability in payments. Reducing loan amounts for struggling borrowers aims to assist them, rather than exploit or disadvantage them financially. Thus, only the act of frequent refinancing for profit accurately characterizes the unethical practice of loan flipping.