A lender's print advertisement includes the statement 'Closing costs as low as $2,500.' Under TILA advertising requirements, this statement:
Correct Answer
C) Is permissible without additional disclosures under TILA
Under TILA Regulation Z Section 1026.24, closing costs are not considered triggering terms. The regulation focuses on credit terms such as payment amounts, APR, finance charges, and loan terms. Closing cost information is considered general lending information that doesn't trigger additional disclosure requirements.
Why This Is the Correct Answer
Under TILA Regulation Z Section 1026.24, closing costs are not considered triggering terms. The regulation focuses on credit terms such as payment amounts, APR, finance charges, and loan terms. Closing cost information is considered general lending information that doesn't trigger additional disclosure requirements.
More Federal Laws Questions
A mortgage broker's website states 'Qualified borrowers can get loans with down payments as low as 3%.' Which statement about TILA advertising requirements is correct?
A loan's APR increases from 4.25% on the Loan Estimate to 4.35% on the Closing Disclosure due to a rate lock expiration. What action is required?
A lender originates a mortgage that meets all QM requirements. Three years later, the borrower defaults and claims the lender violated the ATR rule. What legal protection does the lender have?
For a closed-end mortgage loan, when must the creditor provide the Closing Disclosure to the borrower?
Which of the following documents must be provided to trigger the start of the 3-day rescission period?
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A borrower's refinance loan documents contain an error in the Notice of Right to Cancel form showing the wrong rescission deadline date. The form shows the deadline as Thursday when it should be Friday. What is the effect?
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A mortgage company systematically charges higher fees to borrowers in zip codes with predominantly minority populations, even when the borrowers have similar credit profiles to those in other areas. This practice is: