A lender's radio advertisement mentions '3.5% interest rate.' What additional information must be disclosed under TILA?
Correct Answer
C) APR, payment schedule, loan amount, and down payment if required
Under TILA Section 226.24(d), when an interest rate trigger term is used, the advertisement must include the APR, payment schedule, loan amount, and down payment amount if required.
Why This Is the Correct Answer
Under TILA Section 226.24(d), when an interest rate trigger term is used, the advertisement must include the APR, payment schedule, loan amount, and down payment amount if required.
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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Previous Question
A Loan Estimate shows an origination charge of $2,000. At closing, the actual origination charge is $2,150. Assuming no valid changed circumstances, what is the maximum total that can be charged without violating TRID tolerance rules?
Next Question
A borrower receives their Closing Disclosure on Monday at 10 AM. Assuming no holidays, what is the earliest day the loan can close?