A lender's print advertisement includes the statement 'Closing costs as low as $2,500.' Under TILA advertising requirements, this statement:
Correct Answer
D) 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?
Which of the following documents must be provided to trigger the start of the 3-day rescission period?
For a closed-end mortgage loan, when must the creditor provide the Closing Disclosure to the borrower?
Which information is NOT required to be included in an AfBA disclosure?
A lender quotes an APR of 4.25% on a mortgage loan, but the actual APR calculation results in 4.28%. Under TILA's APR accuracy tolerance, is this disclosure compliant?
Which of the following fees would NOT be included in the finance charge calculation under TILA?
For a purchase money mortgage with a loan amount of $400,000, which of the following represents the correct method for calculating the APR?
A servicer receives a borrower's written request for payoff information on Monday. The borrower needs the information for a refinance closing scheduled for the following Friday. When must the servicer provide an accurate payoff statement?
A lender provides a borrower with initial TILA disclosures showing an APR of 4.5%. Due to market changes, the final APR at closing is 4.625%. What disclosure requirement applies?
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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: