A lender's radio advertisement states 'Get a $300,000 mortgage with payments as low as $1,200 per month.' What additional disclosure is required under TILA's advertising requirements?
Correct Answer
A) The annual percentage rate must be disclosed
Under TILA Regulation Z Section 1026.24, when a payment amount is stated in an advertisement (triggering term), the advertisement must also disclose the annual percentage rate using that term spelled out. This is one of the specific triggering term requirements.
Why This Is the Correct Answer
Under TILA Regulation Z Section 1026.24, when a payment amount is stated in an advertisement (triggering term), the advertisement must also disclose the annual percentage rate using that term spelled out. This is one of the specific triggering term 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?
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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 borrower has a monthly gross income of $8,000. Their existing monthly debt payments total $2,000, and the proposed mortgage payment (including principal, interest, taxes, and insurance) will be $2,500. What is the borrower's debt-to-income ratio for QM purposes?
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